The market uncertainty and currency fluctuations caused by the Brexit vote added to the negativity that has hung over crop markets all week.
Canola futures fell again on Friday, along with other crop markets that have swooned as the weather in North America is mostly favourable for crop development.
A 52 percent majority of Britons on Thursday voted to leave the European Union, and Prime Minister David Cameron said he will resign. That sent markets into turmoil with the British pound down more than 10 percent against the U.S. dollar and the euro also lower versus the greeenback.
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U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
The process of leaving the bloc will have to be negotiated and could take years. The situation throws uncertainty into Canada’s unratified trade deal with the EU. It will likely delay any US-EU trade deal and also could give momentum to “leave the EU” groups in other member countries, potentially throwing the bloc into turmoil.
The rising U.S. buck today put pressure on American crop futures. Old crop oats was the only crop to rise today.
July canola closed at $464.20, down $9 or 1.9 percent and November closed at $476.90, down $8.30 or 1.7 percent.
Since the market turned south June 15 July canola has fallen about $62 a tonne, or almost 12 percent.
New crop November fell about $54 or about 10 percent since July 15.
The pain on the cash market is partly offset by a narrowing basis.
WATCH THIS WEEK’S VIDEO CROP MARKET UPDATE
Rain is expected over most of Manitoba and into eastern Saskatchewan tonight and Saturday with heavy accumulations in north central Manitoba. Amounts of a half inch or more could also fall in much of Alberta Saturday.
The longer term forecast for the first week of July shows a drier trend in the southern Prairies. If there is rain it would likely fall in the northern grainbelt. Also, all the Prairies are expected to have warm weather in early July.
The U.S. Midwest is expected to be cooler than normal next week and in the first week of July. That will likely be bearish for corn and soybean prices.
The weekly canola crush was 153,555 tonnes, down three percent from the week before. That represented 74.3 percent of industry capacity, compared to the year’s average of 81.6 percent.
Canola exports for week 46 (June 13-19) were only 71,700 tonnes, down from 181,400 the week before.
Soybeans fell about two percent on Friday and corn was down a little less than one percent.
For the week, corn was down 12 percent, its biggest weekly decline in three years. Soybeans were down 5.6 percent
Soymeal was off 7.2 percent this week, its third straight week of declines. Soyoil posted a weekly decline of 2.7 percent.
For the week, Chicago wheat was down 3.3 percent, Kansas July winter wheat ended down 38 cents a bushel, or 8.2 percent, amid reports of above-average yields from the U.S. hard red winter wheat harvest.
MGEX July spring wheat ended down 22 cents, or four percent, for the week.
Rain in western Europe could be hurting the quality of the wheat crop there and the price spread between low and high quality grain is increasing.
Farm office FranceAgriMer said crop ratings declined again in the week to June 20, with 71 percent of soft wheat rated good or excellent compared with 75 percent a week earlier.
Light crude oil nearby futures in New York were down $2.47 to US$47.64 per barrel.
The Canadian dollar at noon was US77.21 cents, down from 78.42 cents the previous trading day. The U.S. dollar at noon was C$1.2952.
Financial and energy stocks fell Friday but gold miners rose as investors shifted money into “safe havens” such as gold and the U.S. dollar.
The Toronto Stock Exchange’s S&P/TSX composite index closed down 239.50 points, or 1.69 percent, at 13,891.88. It barely changed on the week.
The Dow Jones industrial average today fell 611.21 points, or 3.39 percent, to 17,399.86, the S&P 500 lost 76.02 points, or 3.6 percent, to 2,037.3 and the Nasdaq Composite dropped 202.06 points, or 4.12 percent, to 4,707.98.
For the week the Dow fell 1.6 percent, the S&P 500 fell 1.6 percent and the Nasdaq fell 1.9 percent.
Winnipeg ICE Futures Canada dollars per tonne
Canola May 2017 498.70 -0.50 -0.10%
Canola Jul 2017 499.70 -1.30 -0.26%
Canola Nov 2017 496.00 +1.50 +0.30%
Canola Jan 2018 499.60 +1.80 +0.36%
Canola Mar 2018 500.40 +1.00 +0.20%
Milling Wheat Jul 2016 227.00 unch 0.00%
Milling Wheat Oct 2016 224.00 unch 0.00%
Durum Wheat Jul 2016 300.00 unch 0.00%
Durum Wheat Oct 2016 296.00 unch 0.00%
Barley Jul 2016 171.50 unch 0.00%
Barley Oct 2016 171.50 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2016 1103.00 -21.50 -1.91%
Soybeans Aug 2016 1101.50 -22.00 -1.96%
Soybeans Sep 2016 1086.25 -22.75 -2.05%
Soybeans Nov 2016 1078.50 -23.00 -2.09%
Soybeans Jan 2017 1076.50 -22.50 -2.05%
Soybeans Mar 2017 1048.00 -19.25 -1.80%
Soybean Meal Jul 2016 375.60 -7.60 -1.98%
Soybean Meal Aug 2016 376.60 -7.40 -1.93%
Soybean Meal Sep 2016 375.40 -7.60 -1.98%
Soybean Oil Jul 2016 30.99 -0.76 -2.39%
Soybean Oil Aug 2016 31.13 -0.77 -2.41%
Soybean Oil Sep 2016 31.27 -0.77 -2.40%
Corn Jul 2016 384.50 -2.75 -0.71%
Corn Sep 2016 389.00 -3.50 -0.89%
Corn Dec 2016 394.25 -3.50 -0.88%
Corn Mar 2017 401.75 -3.50 -0.86%
Corn May 2017 405.75 -3.50 -0.86%
Oats Jul 2016 209.00 +1.75 +0.84%
Oats Sep 2016 201.00 -4.75 -2.31%
Oats Dec 2016 205.75 -4.25 -2.02%
Oats Mar 2017 219.00 -4.00 -1.79%
Oats May 2017 219.00 -4.00 -1.79%
Wheat Jul 2016 454.75 +0.50 +0.11%
Wheat Sep 2016 465.00 -0.75 -0.16%
Wheat Dec 2016 484.75 -1.50 -0.31%
Wheat Mar 2017 502.75 -2.00 -0.40%
Wheat May 2017 513.00 -2.25 -0.44%
Minneapolis
Spring Wheat Jul 2016 517.75 -3.75 -0.72%
Spring Wheat Sep 2016 526.50 -4.50 -0.85%
Spring Wheat Dec 2016 541.50 -4.00 -0.73%
Spring Wheat Mar 2017 555.00 -3.25 -0.58%
Spring Wheat May 2017 562.50 -3.50 -0.62%
Kansas City
Hard Red Wheat Jul 2016 422.75 -5.00 -1.17%
Hard Red Wheat Sep 2016 441.00 -4.50 -1.01%
Hard Red Wheat Dec 2016 466.75 -4.00 -0.85%
Hard Red Wheat Mar 2017 483.25 -4.25 -0.87%
Hard Red Wheat May 2017 493.75 -4.00 -0.80%
Chicago livestock futures in US¢/pound
Live Cattle (P) Jun 2016 114.70 -2.05 -1.76%
Live Cattle (P) Aug 2016 110.87 -2.98 -2.62%
Live Cattle (P) Oct 2016 110.87 -2.76 -2.43%
Feeder Cattle (P) Aug 2016 139.45 -2.93 -2.06%
Feeder Cattle (P) Sep 2016 138.28 -2.54 -1.80%
Feeder Cattle (P) Oct 2016 136.80 -2.35 -1.69%
Lean Hogs (P) Jul 2016 84.05 -0.23 -0.27%
Lean Hogs (P) Aug 2016 84.98 -0.47 -0.55%
Lean Hogs (P) Oct 2016 71.95 -0.25 -0.35%
