Canola closed down more than $8 a tonne, slammed by jitters about China’s economy, weaker crude oil and readjustments to bring its price back in line with the soy complex.
Most-traded March closed at $478, down $8.10 or 1.67 percent.
Canola rallied modestly through December while soy oil fell and some analysts said that the price relationship had got out of balance.
Also, China allowed its currency to devalue against the U.S. dollar overnight to help its export industries. But a weaker yuan will make it more expensive to buy imported crops such as canola.
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China’s sputtering economy helped push down crude oil by 70 cents to US$33.27 a barrel.
• As the market worries about the future of crop demand from China, it is also watching for the rapidly approaching South American harvest.
Already about one percent of Brazil’s soy crop has been combined and in February significant amounts will start to get to port for export.
• Corn futures fell on disappointing weekly U.S. export sales, which totaled only 252,900 tonnes, below analysts’ expectations for 400,000 to 600,000 tonnes.
• A round of short covering lifted wheat even with some bearish fundamental news.
The big funds are heavily net short in the wheat market representing a risk leading up the monthly USDA supply and demand report coming on Tuesday, as well as the quarterly stocks report. The USDA will also have the first estimate of the acreage of the winter wheat crop.
The bearish fundamental news was the disappointing weekly U.S. export sales of only 76,500 tonnes, the lowest of the marketing year and well below trade expectations for 200,000 to 400,000 tonnes.
Also the Buenos Aires Grains Exchange raised its forecast of Argentina’s 2015-16 wheat output by 600,000 tonnes to 10.1 million tonnes in a weekly report.
US weekly soybean export sales were 638,700 tonnes, in line with trade expectations for 400,000 to 700,000 tonnes.
The USDA attaché in Brazil has pegged the soy crop at 98 million tonnes, two million less than the official USDA forecast that will be updated on Tuesday.
• Light crude oil nearby futures in New York were down 70 cents to US$33.27 per barrel.
• The Canadian dollar at noon was US71.12 cents, up from 71.00 cents the previous trading day. The U.S. dollar at noon was C$1.4061.
• Stock markets were hammered lower by the China worries.
The Toronto Stock Exchange’s S&P/TSX composite index closed down 278.59 points, or 2.19 percent, at 12,448.21.
The Dow Jones industrial average fell 392.41 points, or 2.32 percent, to 16,514.1, the S&P 500 lost 47.17 points, or 2.37 percent, to 1,943.09 and the Nasdaq Composite dropped 146.34 points, or 3.03 percent, to 4,689.43.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jan 2016 469.90 -8.10 -1.69%
Canola Mar 2016 478.00 -8.10 -1.67%
Canola May 2016 485.10 -8.50 -1.72%
Canola Jul 2016 488.80 -8.40 -1.69%
Canola Nov 2016 485.00 -8.40 -1.70%
Milling Wheat Mar 2016 237.00 +2.00 +0.85%
Milling Wheat May 2016 240.00 +1.00 +0.42%
Milling Wheat Jul 2016 244.00 unch 0.00%
Durum Wheat Mar 2016 322.00 unch 0.00%
Durum Wheat May 2016 330.00 unch 0.00%
Durum Wheat Jul 2016 330.00 unch 0.00%
Barley Mar 2016 182.00 unch 0.00%
Barley May 2016 188.00 unch 0.00%
Barley Jul 2016 190.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jan 2016 877 +1.25 +0.14%
Soybeans Mar 2016 864.5 -0.25 -0.03%
Soybeans May 2016 867.25 -0.25 -0.03%
Soybeans Jul 2016 873.75 -0.75 -0.09%
Soybeans Aug 2016 876 -1 -0.11%
Soybeans Sep 2016 875.25 -0.75 -0.09%
Soybean Meal Jan 2016 266.2 -0.7 -0.26%
Soybean Meal Mar 2016 267.4 -1.3 -0.48%
Soybean Meal May 2016 270 -1.2 -0.44%
Soybean Oil Jan 2016 29.44 -0.15 -0.51%
Soybean Oil Mar 2016 29.62 -0.16 -0.54%
Soybean Oil May 2016 29.85 -0.16 -0.53%
Corn Mar 2016 353 -0.25 -0.07%
Corn May 2016 358.5 unch 0.00%
Corn Jul 2016 364.5 unch 0.00%
Corn Sep 2016 370.25 unch 0.00%
Corn Dec 2016 378.75 +0.5 +0.13%
Oats Mar 2016 208.75 -3.25 -1.53%
Oats May 2016 207.75 -3 -1.42%
Oats Jul 2016 212.75 -1 -0.47%
Oats Sep 2016 218.25 -1 -0.46%
Oats Dec 2016 217.75 +1.25 +0.58%
Wheat Mar 2016 468.5 +5.75 +1.24%
Wheat May 2016 473.25 +5 +1.07%
Wheat Jul 2016 480.5 +4.75 +1.00%
Wheat Sep 2016 490 +4.5 +0.93%
Wheat Dec 2016 504.5 +4.5 +0.90%
Minneapolis
Spring Wheat Mar 2016 494.75 +5 +1.02%
Spring Wheat May 2016 501.5 +4 +0.80%
Spring Wheat Jul 2016 510.5 +3.25 +0.64%
Spring Wheat Sep 2016 522 +2.5 +0.48%
Spring Wheat Dec 2016 538 +2.75 +0.51%
Kansas City
Hard Red Wheat Mar 2016 462.75 +1.75 +0.38%
Hard Red Wheat May 2016 472.5 +2 +0.43%
Hard Red Wheat Jul 2016 482.25 +1.75 +0.36%
Hard Red Wheat Sep 2016 496 +1.25 +0.25%
Hard Red Wheat Dec 2016 515.75 +0.5 +0.10%
