Canola futures were hammered lower Tuesday as oilseed complex values broke below various support levels.
It was a down day generally on crop markets, pressured by falling crude oil, but oilseeds took the brunt of the damage with canola and soy oil down two percent or more.
March canola closed at $459 per tonne, down $9.30 or almost two percent and May at $461.70, down $11.60 or 2.45 percent.
The trade began to focus on the potential for another record large soybean seeded area in the United States this spring. Exports from South America are picking up speed with a return to better weather.
Palm oil was lower on a report of better than expected production.
The Southern Palm Oil Millers’ Association released data on Tuesday that showed output up 2.6 percent between Feb.1 and Feb. 20 compared with the same period in January.
And crude oil dropped sharply after Saudi Arabia’s oil minister said the country will not cut oil production.
He reaffirmed the country’s pledge with other producers to freeze production at January levels, but said actual cuts would have to come from high cost producers.
Also Iran appeared to dismiss thoughts of controlling production, particularly after the Saudis have push production up to more than 10 million barrels a day.
At the Chicago Board of Trade soy oil posted the biggest loss, with the front-month contract’s 2.4 percent decline its biggest since Dec. 4.
CBOT March soy oil found technical support near its 30-day moving average, a level it has not fallen below since Jan. 26.
Analysts expect the U.S. Agriculture Department to forecast that U.S. farmers would plant 83.3 million acres of soybeans in 2016 at its annual outlook forum this week. The range of traders’ forecast was 82 to 85.2 million acres.
Last year U.S. farmers seeded 82.65 million.
March soybeans closed at $8.69 ¼ a bushel, down -11 ¾ cents or 1.33 percent
The negativity from the big decline in crude oil spread through most commodities.
Wheat fell at all three US commodity exchanges, with Chicago down the most. Chicago was down much as 2.4 percent, putting its premium over corn to less than 90 cents per bushel, the smallest since 2013.
Pressure also came from rain crossing Oklahoma and eastern Texas that will improve soil moisture to hard red winter wheat trade awaits U.S. acreage forecasts from the U.S. Department of Agriculture’s annual two-day Outlook Forum, starting Thursday. Analysts expect U.S. farmers to plant less wheat, and more corn and soybeans, Reuters reported.
Ukraine’s winter wheat crop though is deteriorating.
UkrAgroConsult today pegged winter wheat production at 17.3 million, down 500,000 from its December assessment. It grew about 25 million tonnes last year.
Corn today fell 1.5 percent in Chicago.
Analysts polled by Reuters predicted U.S. plantings of corn would total 89.648 million acres, above last year’s final sum of 87.999 million acres.
Analysts on average expect total wheat acreage at 52.4 million acres, down from 54.64 million last year.
Light crude oil April futures in New York fell $1.52 to US$31.87 per barrel.
The Canadian dollar at noon was US72.51 cents, down from 73.07 cents the previous trading day. The U.S. dollar at noon was C$1.3792.
In late afternoon trade, the Dow and other major U.S. stock market indexes were down more than one percent.
Canada’s Toronto Stock Exchange composite was down 0.85 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola Mar 2016 458.50 -9.80 -2.09%
Canola May 2016 461.70 -11.60 -2.45%
Canola Jul 2016 466.50 -11.60 -2.43%
Canola Nov 2016 470.80 -7.00 -1.47%
Canola Jan 2017 475.80 -6.00 -1.25%
Milling Wheat Mar 2016 227.00 -2.00 -0.87%
Milling Wheat May 2016 230.00 -2.00 -0.86%
Milling Wheat Jul 2016 234.00 -2.00 -0.85%
Durum Wheat Mar 2016 317.00 unch 0.00%
Durum Wheat May 2016 325.00 unch 0.00%
Durum Wheat Jul 2016 310.00 unch 0.00%
Barley Mar 2016 186.00 unch 0.00%
Barley May 2016 190.00 unch 0.00%
Barley Jul 2016 192.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Mar 2016 869.25 -11.75 -1.33%
Soybeans May 2016 873 -11.25 -1.27%
Soybeans Jul 2016 879 -10 -1.12%
Soybeans Aug 2016 880.75 -10 -1.12%
Soybeans Sep 2016 880 -9.25 -1.04%
Soybeans Nov 2016 882.25 -9.25 -1.04%
Soybean Meal Mar 2016 263.2 -1.7 -0.64%
Soybean Meal May 2016 264.3 -1.8 -0.68%
Soybean Meal Jul 2016 266.9 -1.7 -0.63%
Soybean Oil Mar 2016 30.75 -0.74 -2.35%
Soybean Oil May 2016 31.01 -0.73 -2.30%
Soybean Oil Jul 2016 31.25 -0.73 -2.28%
Corn Mar 2016 362 -5.5 -1.50%
Corn May 2016 366.75 -5.5 -1.48%
Corn Jul 2016 372 -5.25 -1.39%
Corn Sep 2016 377.5 -4.75 -1.24%
Corn Dec 2016 386 -4.25 -1.09%
Oats Mar 2016 182.75 -5 -2.66%
Oats May 2016 191 -4 -2.05%
Oats Jul 2016 199 -4 -1.97%
Oats Sep 2016 205.25 -4 -1.91%
Oats Dec 2016 203.75 -3.75 -1.81%
Wheat Mar 2016 448 -10.5 -2.29%
Wheat May 2016 455.75 -8.25 -1.78%
Wheat Jul 2016 464 -7.75 -1.64%
Wheat Sep 2016 476 -6.5 -1.35%
Wheat Dec 2016 492 -5.25 -1.06%
Minneapolis
Spring Wheat Mar 2016 485.75 -7 -1.42%
Spring Wheat May 2016 491.5 -7.25 -1.45%
Spring Wheat Jul 2016 500 -6.25 -1.23%
Spring Wheat Sep 2016 509.75 -6.25 -1.21%
Spring Wheat Dec 2016 524.5 -6.5 -1.22%
Kansas City
Hard Red Wheat Mar 2016 446.25 -7.5 -1.65%
Hard Red Wheat May 2016 456.5 -7 -1.51%
Hard Red Wheat Jul 2016 467 -6.75 -1.42%
Hard Red Wheat Sep 2016 480.5 -7.25 -1.49%
Hard Red Wheat Dec 2016 501.25 -7 -1.38%
