Canola and other crops rally Wed. on biofuel hopes

Crop futures posted a second day of strong gains on Wednesday, still riding the potential for U.S. biofuel policy to change.

Wheat had some independent strength from signs of new international demand and also dry weather in the U.S. southern Plains.

OUR WEEKLY CROP MARKET VIDEO UPDATE WILL BE AVAILABLE THURSDAY

Canola rode higher with rising soy oil and a further half cent decline in the Canadian dollar.

May closed up $12.70 or 2.4 percent to $532.90 per tonne. Over two days the contract has risen 18.50 a tonne.

New crop November today rose $13.50 or 2.7 percent to close at $512.90.

The expectation of tightening canola supplies and still profitable crush margins are also providing support to canola.

Expectations of a March interest rate hike by the U.S. Federal Reserve lifted the American buck. The Bank of Canada today left its interest rate unchanged.

WHEAT

Wheat posted the biggest advance by percentage, with nearby Chicago and Kansas wheat up almost three percent. Minneapolis was up more than two percent.

Wheat was buoyed by news on Tuesday that Egypt’s main state wheat buyer, the General Authority for Supply Commodities (GASC), bought 535,000 tonnes of wheat at an international tender, Reuters reported.

The purchase was GASC’s largest since January 2014. “We look at the surge in Egypt’s buying interest as bullish for EU and K.C.-type wheat prices, and look for appreciation in futures in the short term,” said Terry Reilly, senior commodities analyst with Futures International.

Additional support stemmed from forecasts for potentially stressful dry and warm conditions to persist in the southern U.S. Plains winter wheat belt, Reuters said.

“Plains wheat lacks rain this month, with moisture draw-down to hamper growth in last half of March,” the Commodity Weather Group said in a note to clients.

CORN and SOYBEANS

Both the major U.S. crops climbed with follow through support from speculation on Tuesday that the Trump administration was considering changes to American biofuel policy that would cause increased consumption, leading to new demand for corn for ethanol and soybeans for biodiesel.

OUTSIDE MARKETS

New York Fed president William Dudley, one of the most influential U.S. central bankers, said the case for tightening monetary policy (raising rates) had become “a lot more compelling”, while San Francisco Fed president John Williams said he saw “no need to delay” raising rates.

Meanwhile Canada’s central bank today kept rates unchanged, citing “significant uncertainties” facing the Canadian economy.

Light crude oil nearby futures in New York were down 18 cents to US$53.83 per barrel.

The Canadian dollar at noon was US74.93 cents, down from 75.48 cents the previous trading day. The U.S. dollar at noon was C$1.3346.

Stock markets generally were buoyed by President Donald Trump’s speech to Congress on Tuesday night.

The Toronto Stock Exchange composite rose 200.44 points or 1.3 percent to close at 15,599.68.

The Dow Jones Industrial Average topped 21,000 for the first time ever.

The Dow rose 303.31 points, or 1.46 percent, to 21,115.55, the S&P 500 gained 32.31 points, or 1.37 percent, to 2,395.95 and the Nasdaq Composite added 78.59 points, or 1.35 percent, to 5,904.03.

 

Winnipeg ICE Futures Canada dollars per tonne

Canola May 2017 532.90 +12.70 +2.44%

Canola Jul 2017 535.30 +12.30 +2.35%

Canola Nov 2017 512.90 +13.50 +2.70%

Canola Jan 2018 518.30 +13.20 +2.61%

Canola Mar 2018 520.60 +13.10 +2.58%

 

Milling Wheat May 2017 241.00 +7.00 +2.99%

Milling Wheat Jul 2017 242.00 +7.00 +2.98%

Milling Wheat Oct 2017 233.00 +7.00 +3.10%

 

Durum Wheat May 2017 282.00 unch 0.00%

Durum Wheat Jul 2017 280.00 unch 0.00%

Durum Wheat Oct 2017 267.00 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 1041.25 +16.25 +1.59%

Soybeans May 2017 1051.75 +16.00 +1.54%

Soybeans Jul 2017 1060.00 +15.50 +1.48%

Soybeans Aug 2017 1059.75 +15.75 +1.51%

Soybeans Sep 2017 1044.00 +14.50 +1.41%

Soybeans Nov 2017 1032.25 +14.00 +1.37%

 

Soybean Meal Mar 2017 335.10 +2.50 +0.75%

Soybean Meal May 2017 339.30 +2.90 +0.86%

Soybean Meal Jul 2017 342.30 +2.90 +0.85%

 

Soybean Oil Mar 2017 34.49 +0.80 +2.37%

Soybean Oil May 2017 34.74 +0.81 +2.39%

Soybean Oil Jul 2017 35.00 +0.81 +2.37%

 

Corn Mar 2017 375.75 +9.00 +2.45%

Corn May 2017 382.00 +8.25 +2.21%

Corn Jul 2017 389.25 +8.25 +2.17%

Corn Sep 2017 395.25 +8.00 +2.07%

Corn Dec 2017 401.25 +7.50 +1.90%

 

Oats Mar 2017 260.75 +2.75 +1.07%

Oats May 2017 246.50 +2.25 +0.92%

Oats Jul 2017 243.00 +2.75 +1.14%

Oats Sep 2017 234.25 +1.00 +0.43%

Oats Dec 2017 236.00 unch 0.00%

 

Wheat Mar 2017 435.50 +10.75 +2.53%

Wheat May 2017 457.00 +13.25 +2.99%

Wheat Jul 2017 470.75 +12.25 +2.67%

Wheat Sep 2017 485.00 +11.75 +2.48%

Wheat Dec 2017 503.50 +11.25 +2.29%

 

Minneapolis

Spring Wheat Mar 2017 553.25 +13.50 +2.50%

Spring Wheat May 2017 561.50 +11.25 +2.04%

Spring Wheat Jul 2017 566.00 +10.50 +1.89%

Spring Wheat Sep 2017 571.75 +11.00 +1.96%

Spring Wheat Dec 2017 581.75 +10.75 +1.88%

 

Kansas City

Hard Red Wheat Mar 2017 465.50 +14.25 +3.16%

Hard Red Wheat May 2017 477.25 +13.75 +2.97%

Hard Red Wheat Jul 2017 488.50 +13.50 +2.84%

Hard Red Wheat Sep 2017 502.00 +13.00 +2.66%

Hard Red Wheat Dec 2017 521.00 +12.50 +2.46%

 

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

Live Cattle (P) Apr 2017 117.58 -0.34 -0.29%

Live Cattle (P) Jun 2017 107.80 +0.25 +0.23%

Live Cattle (P) Aug 2017 103.00 +0.58 +0.57%

 

Feeder Cattle (P) Mar 2017 124.50 -0.58 -0.46%

Feeder Cattle (P) Apr 2017 123.75 -0.95 -0.76%

Feeder Cattle (P) May 2017 123.70 -1.02 -0.82%

 

Lean Hogs (P) Apr 2017 68.42 +0.82 +1.21%

Lean Hogs (P) May 2017 74.12 +0.17 +0.23%

Lean Hogs (P) Jun 2017 78.00 +0.38 +0.49%

 

 

 

 

About the author

Comments

explore

Stories from our other publications