Big Brazil crop pressures oilseeds lower

Crop futures were mostly lower on Tuesday weighed down by new private forecasts indicating Brazil’s crops are even bigger than expected.

May canola closed down $8.30 or 1.56 percent at $523.60 per tonne.

New crop November fell 8.10 of 1.58 percent to $503.20.

The USDA will update its supply and demand forecasts on Thursday. Analysts on average expect the report to peg Brazil soy production at 105.95 million tonnes and corn production at 87.78 million tonnes.

Canada’s agriculture minister Lawrence MacAulay is in India this week talking trade. There is no word on any breakthrough on the pulse fumigation issues.

An Indian paper reported that the India Pulses and Grains Association has lobbied the government to extend the deadline for compliance with the methyl bromide fumigation directive.

BRAZIL

Today, broker and analyst INTL FCStone pegged the 2016-17 Brazil soybean crop at 109.07 million tonnes, up from its previous forecast of 104.09 million tonnes, Reuters reported.

The analyst projected Brazil’s total corn crop at 93.3 million tonnes versus 91.5 million seen last month.

Drier weather in Brazil’s north central area has allowed repairs to a highway linking interior soy production zones and ports on the Amazon River. Thousands of trucks that had been stalled because of impassible mud are now moving again, although more rain forecast for later in the week could again cause trouble.

RUSSIA

A state weather forecaster in Russia said that winter weather has been mostly favourable for the fall-seeded grain crop.

The number of acres rated as in poor condition is less than the average.

Soil moisture in most regions is good thans to heavy autumn raines and deep snow.

U.S. WINTER WHEAT

Warm windy weather is drying soils in the southern plains.

Rain is expected in the longer term forecast in the south east and Delta regions, but western Kansas and Oklahoma remain mostly dry.

PALM OIL

A senior palm industry consultant expects palm production in 2017 to be up 11 percent from last year’s drought reduced production.

M.R, Chandran said rain in the last two months has been good, Reuters reported.

Demand for palm oil from Indonesia and Malaysia could fall because India, a major importer, also is enjoying good production.

Benchmark Malaysian crude palm oil futures fell to the lowest level since Novermber on slowing demand and the outlook for increased global production.

Stock indexes fell with pharmaceutical companies leading the way, as President Donald Trump tweeted that he was developing a way to increase competition in the drugs industry to lower prices.

The Toronto Stock Exchange Composite fell 25.29 points or 0.16 percent to close at 15,604.46.

The Dow Jones Industrial Average fell 31.23 points, or 0.15 percent, to 20,923.11, the S&P 500 lost 7.08 points, or 0.30 percent, to 2,368.23 and the Nasdaq Composite dropped 15.25 points, or 0.26 percent, to 5,833.93.

Light crude oil nearby futures in New York were down six cents to US$53.14 per barrel.

In the afternoon, the Canadian dollar was trading around US74.53 cents, little changed from 74.55 cents the previous trading day. The U.S. dollar was C$1.3417.

 

Winnipeg ICE Futures Canada dollars per tonne

Canola May 2017   523.60 -8.30 -1.56%

Canola Jul 2017 525.40 -8.00 -1.50%

Canola Nov 2017 503.20 -8.10 -1.58%

Canola Jan 2018 508.90 -8.10 -1.57%

Canola Mar 2018 513.00 -7.20 -1.38%

 

Milling Wheat May 2017 234.00 -1.00 -0.43%

Milling Wheat Jul 2017 237.00 -1.00 -0.42%

Milling Wheat Oct 2017 230.00 unch 0.00%

 

Durum Wheat May 2017 282.00 unch 0.00%

Durum Wheat Jul 2017 281.00 unch 0.00%

Durum Wheat Oct 2017 268.00 unch 0.00%

 

Barley May 2017 137.00 unch 0.00%

Barley Jul 2017 138.00 unch 0.00%

Barley Oct 2017 138.00 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 2017 1014.75 -12.00 -1.17%

Soybeans May 2017 1025.25 -12.00 -1.16%

Soybeans Jul 2017 1034.75 -11.25 -1.08%

Soybeans Aug 2017 1035.25 -10.75 -1.03%

Soybeans Sep 2017 1022.00 -9.75 -0.94%

Soybeans Nov 2017 1013.50 -8.25 -0.81%

 

Soybean Meal Mar 2017 326.90 -2.30 -0.70%

Soybean Meal May 2017 331.30 -2.40 -0.72%

Soybean Meal Jul 2017 334.30 -2.40 -0.71%

 

Soybean Oil Mar 2017 33.47 -0.55 -1.62%

Soybean Oil May 2017 33.73 -0.54 -1.58%

Soybean Oil Jul 2017 34.00 -0.54 -1.56%

 

Corn Mar 2017 369.50 -3.25 -0.87%

Corn May 2017 376.00 -2.50 -0.66%

Corn Jul 2017 383.25 -2.25 -0.58%

Corn Sep 2017 389.50 -2.00 -0.51%

Corn Dec 2017 396.00 -2.00 -0.50%

 

Oats Mar 2017 265.50 +1.50 +0.57%

Oats May 2017 240.00 -5.00 -2.04%

Oats Jul 2017 234.25 -5.25 -2.19%

Oats Sep 2017 229.00 -4.50 -1.93%

Oats Dec 2017 227.25 -8.00 -3.40%

 

Wheat Mar 2017 436.00 -2.25 -0.51%

Wheat May 2017 456.50 -2.00 -0.44%

Wheat Jul 2017 471.50 -1.50 -0.32%

Wheat Sep 2017 486.25 -0.50 -0.10%

Wheat Dec 2017 504.25 unch 0.00%

 

Spring Wheat Mar 2017 529.50 -1.75 -0.33%

Spring Wheat May 2017 539.50 -2.75 -0.51%

Spring Wheat Jul 2017 548.25 -1.75 -0.32%

Spring Wheat Sep 2017 556.25 -1.50 -0.27%

Spring Wheat Dec 2017 567.00 -1.75 -0.31%

 

Hard Red Wheat Mar 2017 463.25 -1.00 -0.22%

Hard Red Wheat May 2017 472.50 -1.50 -0.32%

Hard Red Wheat Jul 2017 484.50 -1.25 -0.26%

Hard Red Wheat Sep 2017 498.00 -0.75 -0.15%

Hard Red Wheat Dec 2017 516.25 -1.25 -0.24%

 

Chicago livestock futures in US¢/pound (rounded to two decimal places)

Live Cattle (P) Apr 2017 115.35 -0.20 -0.17%

Live Cattle (P) Jun 2017 105.62 -0.66 -0.62%

Live Cattle (P) Aug 2017 101.48 -0.59 -0.58%

 

Feeder Cattle (P) Mar 2017 123.95 -0.13 -0.10%

Feeder Cattle (P) Apr 2017 122.35 -0.33 -0.27%

Feeder Cattle (P) May 2017 121.90 -0.30 -0.25%

 

Lean Hogs (P) Apr 2017 68.05 +0.88 +1.31%

Lean Hogs (P) May 2017 73.60 +0.55 +0.75%

Lean Hogs (P) Jun 2017 77.42 +0.67 +0.87%

 

About the author

explore

Stories from our other publications