American drought continues to be the markets mover. In the USDA’s Drought Monitor for this week the overall situation of the Midwest’s crops is worsening.
Five percent of the Midwestern crops are classified as being part of an exceptional drought, while another 28 percent are classified as extreme.
Very high temperatures and a lack of rain are still plaguing the region. Showers and more moderate temperatures came to Minnesota, Illinois and the Dakotas, improving crop conditions there.
Closer to home the November canola price softened another point to $613.20 on Winnipeg’s ICE. January ended the day at $615 and March 2013 stopped at $615.70 per tonne. Canola basis hangs in at $1 under the November contract.
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Chicago corn moved higher overnight and then fell back during the day, finally settling below the $8 per bushel strength-mark. The September corn, was $7.94, December $7.96 and January 2013 $7.98.
Soybeans also gave up ground, with September down 15 cents, to $16.24 with the two following contracts giving up slightly less and remaining well above $16. Likely a response to the drought’s affects on beans soon being estimated by USDA, in next week’s highly anticipated report.
Overall trade in both corn and beans was sluggish, another possible effect of the USDA’s potential confirmation that, ‘yes this is a bad drought and world stocks are not very high.’ But the traders might be waiting for the agency’s official position on that, causing them to sit on their hands for the next few sessions after appearing to have been smart about the last month’s prices run-up.
The cereals failed to move on ICE today.
Minneapolis wheat fell between one and 1.23 percent today, with spring wheat December contract ending at $9.36 per bushel.
Light and Brent crude fell on a tightening equities market that seems to be looking for signs of recession in the EU and U.S.
The Canadian dollar didn’t help canola, as it fell nearly a half-cent against its American cousin.
Rain for the Canadian West will further improve crop prospects for the region, however some crop losses due to storm damage might offset a few of those yield gains. Overall, it has been good weather news for Prairies growers.
Winnipeg (per tonne)
Canola Nov 12 $613.20, down $6.80 -1.10%
Canola Jan 13 $615.00, down $7.10 -1.14%
Canola Mar 13 $615.70, down $7.40 -1.19%
Canola May 13 $605.90, down $7.00 -1.14%
Western Barley Oct 12 $265.00, unchanged
Western Barley Dec 12 $270.00, unchanged
Milling Wheat Oct 12 $297.50, unchanged
Milling Wheat Dec 12 $305.00, unchanged
Milling Wheat Mar 13 $315.00, unchanged
Durum Wheat Oct 12 $311.50, unchanged
Durum Wheat Dec 12 $316.00, unchanged
Durum Wheat Mar 13 $322.60, unchanged
Barley Oct 12 $264.50, unchanged
Barley Dec 12 $269.50, unchanged
Barley Mar 13 $272.50, unchanged
Chicago (per bushel)
Soybeans (P) Aug 12 $16.5300, down 29.25 cents -1.74%
Soybeans (P) Sep 12 $16.2350, down 15.25 -0.93%
Soybeans (P) Nov 12 $16.1650, down 12.50 -0.77%
Soybeans (P) Jan 13 $16.1025, down 10.50 -0.65%
Corn (P) Sep 12 $7.9400, down 6.50
Corn (P) Dec 12 $7.9575, down 4.75
Corn (P) Mar 13 $7.9750, down 1.50
Oats (P) Sep 12 $3.7175, up 0.75 +0.20%
Oats (P) Dec 12 $3.7250, up 0.50 +0.13%
Oats (P) Mar 13 $3.7400, up 1.50 +0.40%
Minneapolis (per bushel)
Spring Wheat Sep 12 $9.2650, down 11.50 cents -1.23%
Spring Wheat Dec 12 $9.3650, down 11.00 -1.16%
Spring Wheat Mar 13 $9.4375, down 9.75 -1.02%
Spring Wheat May 13 $9.4525, down 10.25 -1.07%
The previous day’s best canola basis was $1 under the November contract according to ICE Futures Canada in Winnipeg.
Light crude oil nearby futures in New York dropped $1.78 at $87.13 US per barrel.
The Canadian dollar at noon was 99.38 cents US, down from 99.83 cents the previous trading day. The U.S. dollar at noon was $1.0062 Cdn.
