Canola futures fell Tuesday, pressured lower by a sharp drop in soybean values and by mostly favourable growing weather in Western Canada and the U.S. Midwest.
In soybeans, Monday’s gains were more than wiped out on a near-four percent drop, fueled by profit taking and rumours that China might sell three million tonnes of soybeans from government reserves. That would cool demand for imported soybeans from the U.S. and South America.
Monday’s soybean rally sparked more farmer deliveries leading to weakened cash bids today. Also, some processors are taking the opportunity to do seasonal maintenance, reducing demand from crushers.
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Corn dropped below technical support and hit a level not seen in more than 2 ½ years. It fell on the favourable weather in the U.S. Midwest and that pressured wheat lowered as well.
Temperatures in the Midwest have backed off from last week’s sizzling weather. The cooler weather is good for pollinating corn, but leading corn producer Iowa and other parts of the western Midwest could do with more rain. Rich Nelson, Allendale’s chief strategist, said that the lack of moisture in the western cornbelt has the potential to take the national average yield down to less than 150 bushels per acre. That is not the generally held view though. The current USDA forecast is 156.5 bu. per acre. Click on map to see departure from normal precipitation for the last month.
The 10-day forecast for the Midwest is for moderate temperatures and occasional showers.
The five-day forecast for the Prairies is for cooler than average temperatures with showers.
A look at Prairie rainfall maps shows that the only areas with significant dryness concerns are west central Saskatchewan around North Battleford, southwestern Alberta around Pincher Creek and the Peace River region around High Level, Alta. Click on map to see larger version.
The loonie was a little stronger. Wall Street and Bay Street had a lackluster day posting mixed results.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2013 513.00 -6.70 -1.29%
Canola Jan 2014 517.50 -7.40 -1.41%
Canola Mar 2014 522.20 -6.80 -1.29%
Canola May 2014 524.80 -6.40 -1.20%
Canola Jul 2014 527.80 -3.90 -0.73%
Milling Wheat Oct 2013 259.00 -5.00 -1.89%
Milling Wheat Dec 2013 263.00 -5.00 -1.87%
Milling Wheat Mar 2014 270.00 -5.00 -1.82%
Durum Wheat Oct 2013 296.00 -6.00 -1.99%
Durum Wheat Dec 2013 301.00 -6.00 -1.95%
Durum Wheat Mar 2014 311.00 -1.00 -0.32%
Barley Oct 2013 194.00 unch 0.00%
Barley Dec 2013 199.00 unch 0.00%
Barley Mar 2014 199.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Aug 2013 1462.5 -57.75 -3.80%
Soybeans Sep 2013 1324 -24.75 -1.84%
Soybeans Nov 2013 1260.25 -28.25 -2.19%
Soybeans Jan 2014 1265 -27.5 -2.13%
Soybeans Mar 2014 1264.25 -25 -1.94%
Soybeans May 2014 1259.5 -20.75 -1.62%
Soybean Meal Aug 2013 487.8 -14.6 -2.91%
Soybean Meal Sep 2013 437.6 -2.8 -0.64%
Soybean Meal Oct 2013 387.3 -8.2 -2.07%
Soybean Oil Aug 2013 44.78 -0.63 -1.39%
Soybean Oil Sep 2013 44.75 -0.65 -1.43%
Soybean Oil Oct 2013 44.69 -0.61 -1.35%
Corn Sep 2013 522.5 -18.25 -3.37%
Corn Dec 2013 485.5 -12.5 -2.51%
Corn Mar 2014 498 -12.25 -2.40%
Corn May 2014 506 -12.25 -2.36%
Corn Jul 2014 512 -12 -2.29%
Oats Sep 2013 352.75 -4.25 -1.19%
Oats Dec 2013 337 -5.25 -1.53%
Oats Mar 2014 342.75 -5 -1.44%
Oats May 2014 343 -5.25 -1.51%
Oats Jul 2014 352.5 -5.25 -1.47%
Wheat Sep 2013 653.75 -6 -0.91%
Wheat Dec 2013 665.5 -5.75 -0.86%
Wheat Mar 2014 676.25 -6.25 -0.92%
Wheat May 2014 682.75 -6 -0.87%
Wheat Jul 2014 680.75 -6.5 -0.95%
Minneapolis
Spring Wheat Sep 2013 744 -2.75 -0.37%
Spring Wheat Dec 2013 755 -2.75 -0.36%
Spring Wheat Mar 2014 767.5 -3 -0.39%
Spring Wheat May 2014 775.5 -2.75 -0.35%
Spring Wheat Jul 2014 782.25 -1.75 -0.22%
Kansas City
KCBT Red Wheat Sep 2013 699 -3 -0.43%
KCBT Red Wheat Dec 2013 710.25 -4.5 -0.63%
KCBT Red Wheat Mar 2014 720 -5 -0.69%
KCBT Red Wheat May 2014 723.25 -6.75 -0.92%
KCBT Red Wheat Jul 2014 715.25 -11 -1.51%
Light crude oil nearby futures in New York rose 29 cents at $107.23 US per barrel.
The Canadian dollar at noon was 97.05 cents US, up from 96.74 cents the previous trading day. The U.S. dollar at noon was $1.0304 Cdn.
In unofficial tallies —
The Toronto Stock Exchange’s S&P/TSX composite index closed down 13 points, or 0.10 percent, at 12,745.38.
The Dow Jones Industrial Average crept up 22 points, or 0.14 percent, to finish at 15,568.
The S&P 500 inched lower, losing three points, or 0.19 percent, to close at 1,692.
The Nasdaq shed 21 points, or 0.59 percent, to 3,579.
