Canola futures fell less than one percent but corn was down more than two percent on ideas that demand for American crops is waning as its currency rises and South American crops crowd on to the world market.
Canola fell less than soybeans as modest buying in thin volume offset some of the negativity in markets.
Canola exports of late have been below the level needed to meet Agriculture Canada’s export forecast of 9.2 million tonnes. However, as we mentioned last week, Chinese buyers have been in the market recently and that should help export volumes to pick up.
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U.S. livestock: Cattle futures end lower in profit-taking, technical correction
Chicago Mercantile Exchange cattle futures declined for a second straight session on Wednesday in a profit-taking and technical-selling correction from recent highs.
Soybeans fell on weak U.S. export prospects and the prospect for a big jump in soybean acres in the U.S. this spring.
Corn futures suffered as China, the world’s second-largest corn consumer, has booked over 600,000 tonnes of corn from Ukraine this year and more deals from the Black Sea are expected as Beijing’s stockpiling dries up supplies and boosts domestic prices. Reuters reported.
Wheat rose in early overnight trading but then fell off during the trading day with a sharp drop right at the close.
Wheat had been supported by concerns about dry conditions in the southern U.S. Plains and the condition of crops in Russia.
The weekly crop condition reports in Kansas and Oklahoma showed deterioration from the previous week, but they are still in better condition than last year at this time.
After hitting a two week high, wheat began to sell off because it was pricing U.S. wheat out of the global market. Also, the fall in corn weighed on wheat.
The U.S. Federal Reserve provides a statement on monetary policy Wednesday and that will have a big impact on the U.S. dollar, which has been rising rapidly for months.
It is unlikely that the Fed will actually do anything, but its language about what it will do in the future will be closely watched.
Most analysts expect the fed will raise rates sometime in the second half of the year if the U.S. economy continues to grow and post good monthly job creation.
Two economic indicators came in weaker than expected with monthly housing starts falling to the lowest level in a year and U.S. manufacturing output in February falling for the third month in a row.
Light crude oil nearby futures in New York were down 42 cents to US$43.46 per barrel.
The Canadian dollar at noon was US78.31 cents, down slightly from 78.34 cents the previous trading day. The U.S. dollar at noon was C$1.2769.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 35.77 points, or 0.24 percent, at 14,898.53.
The Dow Jones industrial average fell 129.98 points, or 0.72 percent, to 17,847.44, the S&P 500 lost 7.02 points, or 0.34 percent, to 2,074.17 and the Nasdaq Composite added 7.93 points, or 0.16 percent, to 4,937.44.
Winnipeg ICE Futures Canada dollars per tonne
Canola May 2015 457.10 -3.60 -0.78%
Canola Jul 2015 454.10 -2.50 -0.55%
Canola Nov 2015 443.40 -3.00 -0.67%
Canola Jan 2016 444.50 -3.00 -0.67%
Canola Mar 2016 447.10 -3.00 -0.67%
Milling Wheat May 2015 238.00 -4.00 -1.65%
Milling Wheat Jul 2015 240.00 -4.00 -1.64%
Milling Wheat Oct 2015 243.00 -4.00 -1.62%
Durum Wheat May 2015 323.00 unch 0.00%
Durum Wheat Jul 2015 313.00 unch 0.00%
Durum Wheat Oct 2015 318.00 unch 0.00%
Barley May 2015 184.00 unch 0.00%
Barley Jul 2015 186.00 unch 0.00%
Barley Oct 2015 177.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans May 2015 954.5 -14.75 -1.52%
Soybeans Jul 2015 959.5 -14.25 -1.46%
Soybeans Aug 2015 959.25 -13.25 -1.36%
Soybeans Sep 2015 945.75 -13.5 -1.41%
Soybeans Nov 2015 940 -11.5 -1.21%
Soybeans Jan 2016 945 -11.5 -1.20%
Soybean Meal May 2015 317.5 -6.2 -1.92%
Soybean Meal Jul 2015 315.9 -4.9 -1.53%
Soybean Meal Aug 2015 315.3 -3.9 -1.22%
Soybean Oil May 2015 30.04 -0.35 -1.15%
Soybean Oil Jul 2015 30.24 -0.34 -1.11%
Soybean Oil Aug 2015 30.32 -0.34 -1.11%
Corn May 2015 371 -8 -2.11%
Corn Jul 2015 379 -8 -2.07%
Corn Sep 2015 386.75 -8 -2.03%
Corn Dec 2015 396.75 -7.5 -1.86%
Corn Mar 2016 406.75 -7 -1.69%
Oats May 2015 271 -7 -2.52%
Oats Jul 2015 273.5 -7 -2.50%
Oats Sep 2015 275.5 -7.25 -2.56%
Oats Dec 2015 274.75 -1.5 -0.54%
Oats Mar 2016 280.5 -4.75 -1.67%
Wheat May 2015 503.5 -10.5 -2.04%
Wheat Jul 2015 506.75 -9.75 -1.89%
Wheat Sep 2015 516.5 -9.5 -1.81%
Wheat Dec 2015 530.75 -8.5 -1.58%
Wheat Mar 2016 543.75 -6.75 -1.23%
Minneapolis
Spring Wheat May 2015 569.75 -11.25 -1.94%
Spring Wheat Jul 2015 575.25 -11.25 -1.92%
Spring Wheat Sep 2015 583.25 -11 -1.85%
Spring Wheat Dec 2015 593 -10.5 -1.74%
Spring Wheat Mar 2016 605 -9.5 -1.55%
Kansas City
Hard Red Wheat May 2015 542.75 -12.25 -2.21%
Hard Red Wheat Jul 2015 548.5 -11.25 -2.01%
Hard Red Wheat Sep 2015 560.5 -11 -1.92%
Hard Red Wheat Dec 2015 576.5 -10.5 -1.79%
Hard Red Wheat Mar 2016 589 -9.75 -1.63%
