Canola and soybeans fell sharply on Thursday as new long-term weather outlooks show that soybeans should be able to get through their pod setting stage in August without much stress.
The latest outlook for La Nina show that it is unlikely to form before the fall, making it more certain that the U.S. Midwest will not suffer extreme weather during the summer.
And with almost all of the Midwest set to get regular rain though the next two weeks, crops there are well set on the path to good yields.
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Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
It is a similar story on the Canadian Prairies where most crops are developing well with good moisture and no excessive heat.
Rain is also expected over much of the Prairies this weekend and early next week. Lentils are one crop that won’t want additional moisture. Yields for the pulse could be quite disappointing because of the moisture.
November canola closed at $462.30, down $17.50 or 3.65 percent.
November soybeans fell 4.52 percent.
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The story today in corn was different. Prices initially rallied when Brazil’s Conab forecaster lowered its estimate of the year’s corn production to to 69.14 million tonnes from 76.22 million previously, reflecting problems in the second corn crop that is seeded following harvest of the soybean crop.
However, the corn rally stalled and then reversed, with contracts closing a fraction of a cent per bushel on either side of unchanged as traders took profits from the morning rally and adjusted positions to reflect the ideal Midwest weather and falling soybeans.
Wheat fell as a short covering rally stalled and as the U.S. winter wheat harvest continues to roll along at a good clip.
European wheat prices have experienced a bit of support recently from concerns about the harvest in France and Germany.
Rain has been excessive in the region and is now believed to be actually hurting yields as well as quality.
The weekly read of U.S. crude oil stockpiles fell slightly less than forecast, disappointing market bulls and sparking a strong sell off.
Light crude oil nearby futures in New York were down $2.29 or 4.7 percent to US$45.14 per barrel.
The Canadian dollar at noon was US77.02 cents, up from 76.89 cents the previous trading day. The U.S. dollar at noon was C$1.2984.
The Toronto Stock Exchange’s S&P/TSX composite index closed down 96.60 points, or 0.68 percent, at 14,134.46.
The Dow Jones industrial average fell 22.74 points, or 0.13 percent, to 17,895.88, the S&P 500 lost 1.83 points, or 0.09 percent, to 2,097.9 and the Nasdaq Composite added 17.65 points, or 0.36 percent, to 4,876.81.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 16 461.80s -17.50 -3.65%
Canola Nov 16 462.30s -17.50 -3.65%
Canola Jan 17 469.20s -17.30 -3.56%
Canola Mar 17 475.20s -16.80 -3.41%
Canola May 17 480.00s -16.20 -3.26%
Milling Wheat Jul 16 211.00s -3.00 -1.40%
Milling Wheat Oct 16 209.00s -2.00 -0.95%
Milling Wheat Dec 16 214.00s -2.00 -0.93%
Durum Wheat Jul 16 283.00s -3.00 -1.05%
Durum Wheat Oct 16 278.00s -3.00 -1.07%
Durum Wheat Dec 16 281.00s -2.00 -0.71%
Barley Jul 16 166.00s unch unch
Barley Oct 16 166.00s unch unch
Barley Dec 16 166.00s unch unch
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 16 1054-2s -52-0 -4.70%
Soybeans Aug 16 1050-4s -51-0 -4.63%
Soybeans Sep 16 1034-0s -50-6 -4.68%
Soybeans Nov 16 1024-6s -48-4 -4.52%
Soybeans Jan 17 1024-6s -47-2 -4.41%
Soybean Meal Jul 16 370.0s -16.0 -4.15%
Soybean Meal Aug 16 367.2s -16.2 -4.23%
Soybean Meal Sep 16 363.8s -16.2 -4.26%
Soybean Oil Jul 16 29.73s -0.52 -1.72%
Soybean Oil Aug 16 29.79s -0.57 -1.88%
Soybean Oil Sep 16 29.90s -0.57 -1.87%
Corn Jul 16 335-4s -0-2 -0.07%
Corn Sep 16 341-6s +0-2 +0.07%
Corn Dec 16 348-4s +0-2 +0.07%
Corn Mar 17 357-2s -0-4 -0.14%
Corn May 17 363-2s -0-2 -0.07%
Oats Jul 16 227-4s +9-4 +4.36%
Oats Sep 16 194-0s +1-4 +0.78%
Oats Dec 16 195-4s +2-0 +1.03%
Oats Mar 17 204-6s +1-2 +0.61%
Oats May 17 209-2s +1-2 +0.60%
Wheat Jul 16 412-0s -3-6 -0.90%
Wheat Sep 16 425-4s -3-0 -0.70%
Wheat Dec 16 446-2s -1-6 -0.39%
Wheat Mar 17 464-0s -1-2 -0.27%
Wheat May 17 476-0s -1-0 -0.21%
Minneapolis
Spring Wheat Jul 16 486-0s -11-0 -2.21%
Spring Wheat Sep 16 495-2s -7-0 -1.39%
Spring Wheat Dec 16 511-4s -5-6 -1.11%
Spring Wheat Mar 17 527-0s -4-6 -0.89%
Spring Wheat May 17 536-6s -4-6 -0.88%
Kansas City
Hard Red Wheat Jul 16 396-4s -4-0 -1.00%
Hard Red Wheat Sep 16 412-2s -2-4 -0.60%
Hard Red Wheat Dec 16 436-4s -2-2 -0.51%
Hard Red Wheat Mar 17 452-6s -2-4 -0.55%
Hard Red Wheat May 17 463-4s -2-4 -0.54%
Chicago livestock futures in US¢/pound
Live Cattle (P) Aug 16 111.800s -1.000 -0.89%
Live Cattle (P) Oct 16 112.225s -0.875 -0.77%
Live Cattle (P) Dec 16 113.275s -0.700 -0.61%
Feeder Cattle (P) Aug 16 143.625s -0.950 -0.66%
Feeder Cattle (P) Sep 16 142.650s -1.050 -0.73%
Feeder Cattle (P) Oct 16 141.275s -1.200 -0.84%
Lean Hogs (P) Jul 16 81.050s -0.525 -0.64%
Lean Hogs (P) Aug 16 80.125s -0.500 -0.62%
Lean Hogs (P) Oct 16 69.475s -0.425 -0.61%
