Canola got hammered below $500 per tonne Monday as a U.S.-led grain markets selloff bled over into already weak canola futures.
November fell $10.80 to $494 per tonne, while January fell to $499.90.
The selloff hit all main crops, but was most intense in canola and wheat.
September Minneapolis spring wheat settled US$7.50 ½, down 19 ½ cents.
At one point it traded as low as $7.22 ¼.
However, not much fundamentally changed during the weekend for American or Canadian crops, with most of the selling apparently coming from technical traders.
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Alberta Crop Report: Rains in the south, dryness in the north
Rain fell onto the southern half of Alberta last week, while hot and dry conditions persisted in the northern half, according to the province’s crop report released on July 18.
Cooler weather also was a factor with temperatures dropping from the 30s C in many areas down into the 20s.
The northern third of the Prairie grain belt got rain over the past few days.
“The chatter was weather,” said P.I. Financial trader Ken Ball after the close on Monday, even though U.S. National Weather Service maps that appeared to suggest more benign western U.S. growing conditions aren’t necessarily reliable right now.
“Their maps have been very flip-floppy this year,” said Ball.
Grain markets are in full-blown weather market mode, with every report of rain, heat or storm provoking price action, with some responding to potential fundamental impact and others speculating upon those potential supply impacts.
U.S. Midwest weather appears to be bearish in nearby forecasts, with cooler temperatures and showers helping the corn crop reach its potential.
Large stocks of old crop corn are weighing down prices, with the new crop situation taking a back seat to the need for the old to be moved.
Canola was weak last week as well, making the crop seem cheap considering to its supply situation, Ball said.
“The supply is just incredibly tight,” said Ball, noting the thin stocks that are almost certain for the coming crop year, while soybeans should have a reasonable cushion.
US CROP CONDITIONS
After the market close the USDA said the ood to excellent rating for soybeans fell more than expected, dropping four percentage points to 57 percent, from 61 the week before and 68 last year.
Corn fell two percentge points to 62 percent. Last year it was 76 percent.
Spring wheat fell one percentage point to 33 percent. Last year it was 68 percent.
In North Dakota, the durum good to excellent condition plunged to 14 percent from 24 percent the week before.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up 57 cents US$46.34 per barrel.
In the afternoon, the Canadian dollar was trading around US79.91 cents, up from 79.38 cents the previous trading day. The U.S. dollar was C$1.2514.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 17 494.00 -10.80 -2.14%
Canola Jan 18 499.90 -10.40 -2.04%
Canola Mar 18 504.40 -9.50 -1.85%
Canola May 18 507.40 -7.30 -1.42%
Canola Jul 18 510.90 -7.10 -1.37%
Milling Wheat Oct 17 284.00 -6.00 -2.07%
Milling Wheat Dec 17 291.00 -7.00 -2.35%
Milling Wheat Mar 18 296.00 -6.00 -1.99%
Durum Wheat Oct 17 305.00 unch unch
Durum Wheat Dec 17 288.00 unch unch
Durum Wheat Mar 18 291.00 unch unch
Barley Oct 17 140.00 unch unch
Barley Dec 17 140.00 unch unch
Barley Mar 18 140.00 unch unch
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Aug 2017 997.50 -11.50 -1.14%
Soybeans Sep 2017 1002.50 -11.75 -1.16%
Soybeans Nov 2017 1010.00 -12.25 -1.20%
Soybeans Jan 2018 1019.00 -11.75 -1.14%
Soybeans Mar 2018 1022.25 -11.25 -1.09%
Soybean Meal Aug 2017 325.90 -3.80 -1.15%
Soybean Meal Sep 2017 327.80 -3.90 -1.18%
Soybean Meal Oct 2017 329.60 -4.00 -1.20%
Soybean Oil Aug 2017 33.61 -0.19 -0.56%
Soybean Oil Sep 2017 33.73 -0.20 -0.59%
Soybean Oil Oct 2017 33.82 -0.22 -0.65%
Corn Sep 2017 377.25 -2.50 -0.66%
Corn Dec 2017 390.75 -2.75 -0.70%
Corn Mar 2018 402.00 -2.50 -0.62%
Corn May 2018 407.00 -2.50 -0.61%
Corn Jul 2018 412.00 -2.25 -0.54%
Oats Sep 2017 288.75 -7.00 -2.37%
Oats Dec 2017 287.25 -9.00 -3.04%
Oats Mar 2018 286.75 -8.00 -2.71%
Oats May 2018 285.75 -8.25 -2.81%
Oats Jul 2018 284.50 -8.25 -2.82%
Wheat Sep 2017 488.75 -10.50 -2.10%
Wheat Dec 2017 513.50 -9.00 -1.72%
Wheat Mar 2018 536.25 -6.75 -1.24%
Wheat May 2018 547.00 -6.00 -1.08%
Wheat Jul 2018 552.50 -5.50 -0.99%
Minneapolis
Spring Wheat Sep 2017 750.50 -19.50 -2.53%
Spring Wheat Dec 2017 758.50 -19.25 -2.48%
Spring Wheat Mar 2018 756.50 -16.25 -2.10%
Spring Wheat May 2018 745.75 -14.00 -1.84%
Spring Wheat Jul 2018 729.25 -15.75 -2.11%
Kansas City
Hard Red Wheat Sep 2017 487.50 -9.75 -1.96%
Hard Red Wheat Dec 2017 514.50 -8.25 -1.58%
Hard Red Wheat Mar 2018 531.75 -9.25 -1.71%
Hard Red Wheat May 2018 545.50 -6.50 -1.18%
Hard Red Wheat Jul 2018 558.25 -4.50 -0.80%
Chicago livestock futures in US¢/pound (rounded to two decimal places)
Live Cattle (P) Aug 2017 113.88 -2.55 -2.19%
Live Cattle (P) Oct 2017 114.40 -3.00 -2.56%
Live Cattle (P) Dec 2017 115.18 -3.00 -2.54%
Feeder Cattle (P) Aug 2017 148.45 -4.50 -2.94%
Feeder Cattle (P) Sep 2017 148.68 -4.48 -2.92%
Feeder Cattle (P) Oct 2017 147.60 -4.353 -2.86%
Lean Hogs (P) Aug 2017 80.38 -0.73 -0.89%
Lean Hogs (P) Oct 2017 66.45 -0.78 -1.15%
Lean Hogs (P) Dec 2017 61.18 -0.8073 -1.29%
