Canola caught in general crop market decline

Improving Midwest weather and unwinding of bull spreads in soybeans knocked crop futures lower on Thursday.

Traders took profits on corn, soybeans and wheat following the rally of the past few days.

July soybeans fell the most, down 3.42 percent, as traders unwound bull spreads amid waning demand for U.S. exports and easing concerns about the tight domestic supply situation.

The closely watched July-November spread narrowed by 30.25 cents, Reuters reported.

The nearby soybean contracts had rallied much stronger than new crop recently as traders worried about tight supply.

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However, the high price has attracted imports of Brazilian soybeans. Also demand from China for old crop American soybeans has cooled.

Soybean meal also fell hard today and soy oil was down almost one percent.

That weighed on canola, but the fall was not as sharp as in soybeans. July canola closed at $469.20, down $8.20 or 1.72 percent.

Corn weighed down wheat even as the industry tour of Kansas showed yield prospects in the state are well down from last year. (See the final yield estimate for the tour further on in this report.)

Also, temperatures in the hardest hit areas of the western wheat belt are expected to climb into the low 30s C on the weekend, further stressing crops.

The warm, dry weather is expected to extend into the Midwest, providing an opportunity for an improved planting pace.

The outlook for the Canadian Prairies is less favourable with cool temperatures and several chances for showers over the next five days in many areas.

The Wheat Quality Council’s tour of Kansas ended today and participants estimate the state’s average yield at 33.2 bushels per acre for a crop of 260 million bu.

Last year according to USDA figures, the average yield was 38 bushels per acre and harvest was 319.2 million bushels.

The five-year tour average for the state is 41.8 bu. per acre.

The winter wheat crop in Oklahoma and Texas are in worse shape, but the tour did not go there.

Winnipeg ICE Futures Canada dollars per tonne

Canola May 2014 479.10 -5.20 -1.07%

Canola Jul 2014 469.20 -8.20 -1.72%

Canola Nov 2014 476.20 -9.10 -1.88%

Canola Jan 2015 481.80 -9.80 -1.99%

Canola Mar 2015 486.60 -10.00 -2.01%

Milling Wheat May 2014 230.00 -3.00 -1.29%

Milling Wheat Jul 2014 237.00 -1.00 -0.42%

Milling Wheat Oct 2014 237.00 -2.00 -0.84%

Durum Wheat May 2014 247.00 unch 0.00%

Durum Wheat Jul 2014 247.00 unch 0.00%

Durum Wheat Oct 2014 242.00 unch 0.00%

Barley May 2014 139.50 unch 0.00%

Barley Jul 2014 140.50 unch 0.00%

Barley Oct 2014 140.50 unch 0.00%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans May 2014 1473.5 -57.25 -3.74%

Soybeans Jul 2014 1461 -51.75 -3.42%

Soybeans Aug 2014 1399.75 -41 -2.85%

Soybeans Sep 2014 1281.25 -29 -2.21%

Soybeans Nov 2014 1225.5 -21.25 -1.70%

Soybeans Jan 2015 1231 -21 -1.68%

Soybean Meal May 2014 486.7 -17.2 -3.41%

Soybean Meal Jul 2014 476.7 -17 -3.44%

Soybean Meal Aug 2014 451 -13.5 -2.91%

Soybean Oil May 2014 40.92 -0.96 -2.29%

Soybean Oil Jul 2014 41.16 -0.95 -2.26%

Soybean Oil Aug 2014 41.12 -0.96 -2.28%

Corn May 2014 503.25 -10.75 -2.09%

Corn Jul 2014 507 -12 -2.31%

Corn Sep 2014 502.5 -10.75 -2.09%

Corn Dec 2014 499.5 -9.75 -1.91%

Corn Mar 2015 507.5 -9 -1.74%

Oats May 2014 418 -0.5 -0.12%

Oats Jul 2014 353 -7.5 -2.08%

Oats Sep 2014 340 -3.25 -0.95%

Oats Dec 2014 333 -4.25 -1.26%

Oats Mar 2015 330.5 -6 -1.78%

Wheat May 2014 698.75 -14.25 -2.00%

Wheat Jul 2014 707.25 -14.25 -1.98%

Wheat Sep 2014 716 -13.75 -1.88%

Wheat Dec 2014 729.75 -13 -1.75%

Wheat Mar 2015 741.75 -12.5 -1.66%

Minneapolis

Spring Wheat May 2014 748.75 -8.25 -1.09%

Spring Wheat Jul 2014 761.25 -7.5 -0.98%

Spring Wheat Sep 2014 772 -4.25 -0.55%

Spring Wheat Dec 2014 782 -5.5 -0.70%

Spring Wheat Mar 2015 789.75 -5 -0.63%

Kansas City

KC HRW Wheat May 2014 806.25 -3.5 -0.43%

KC HRW Wheat Jul 2014 804 -8.5 -1.05%

KC HRW Wheat Sep 2014 807.25 -7.25 -0.89%

KC HRW Wheat Dec 2014 815.25 -6.5 -0.79%

KC HRW Wheat Mar 2015 817.25 -5.75 -0.70%

Light crude oil nearby futures in New York dropped 32 cents at $99.42 US per barrel.

The Canadian dollar at noon was 91.20 cents US, down from 91.27 cents the previous trading day. The U.S. dollar at noon was $1.0965 Cdn.

Reports on March data showed U.S. consumer spending increased the most in more than 4 ½ years and factory activity accelerated, adding to the perceptions that the U.S. economy is bouncing back from the slow pace during the harsh winter.

The Toronto Stock Exchange’s S&P/TSX composite index unofficially closed up 12.20 points, or 0.08 percent, at 14,664.07.

The Dow Jones industrial average fell 21.97 points or 0.13 percent, to 16,558.87. The Dow posted a record high yesterday.

The S&P 500 lost 0.26 points or 0.01 percent, to 1,883.69.

The Nasdaq Composite added 12.896 points or 0.31 percent, to 4,127.451.

Monthly unemployment reports will be released Friday.