Canola retreated Thursday, saddled by technical weakness and a falling U.S. crop market.
The failure of the July contract to break above $500 on Wednesday injected a factor of technical weakness that lingered into today.
The first good week for seeding progress in most of Western Canada also weighed on canola.
Saskatchewan Agriculture said farmers in the province had seven percent of the crop in the ground, short of the five-year average of nine percent and well back of the 10-year average of 15 percent.
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Alas, work will likely stall this weekend with rain over large parts of the Prairies expected Sunday and Monday.
Wheat, corn and soybeans also fell.
Kansas and Minneapolis wheat fell more than three percent while Chicago fell about 1.7 percent. The decline gained momentum as the price fell below technical levels such as the 20-day moving average.
Weekly export sales of old crop U.S. wheat were below expectations and cash bids for wheat at Pacific ports are falling because of weak export demand for pricey American wheat.
Europe’s Strategie Grains raised its forecast of EU soft wheat exports for the current crop year to a record high 28.1 million tonnes, up 1.3 million.
Analyst Informa Economics trimmed its forecast for U.S. corn and spring wheat seeded acreage and increased its outlook for soybean seedings.
Corn futures fell on technical weakness and improved planting weather expected in the northern U.S. corn belt next week.
Soybean futures fell after the National Oilseed Processors Association’s monthly crush data showed the pace of crushing was roughly in line with expectations during April.
NOPA said processors crushed 132.667 million bushels of soybeans during April, the most for the month in five years.
Winnipeg ICE Futures Canada, dollars per tonne
Canola Jul 2014 484.90 -7.90 -1.60%
Canola Nov 2014 480.40 -4.90 -1.01%
Canola Jan 2015 483.80 -4.90 -1.00%
Canola Mar 2015 485.40 -5.30 -1.08%
Canola May 2015 486.60 -4.80 -0.98%
Milling Wheat Jul 2014 232.00 -8.00 -3.33%
Milling Wheat Oct 2014 231.00 -9.00 -3.75%
Milling Wheat Dec 2014 234.00 -9.00 -3.70%
Durum Wheat Jul 2014 252.00 unch 0.00%
Durum Wheat Oct 2014 243.00 unch 0.00%
Durum Wheat Dec 2014 245.00 +2.00 +0.82%
Barley Jul 2014 150.00 +4.30 +2.95%
Barley Oct 2014 150.00 +4.30 +2.95%
Barley Dec 2014 152.00 +6.30 +4.32%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2014 1470.25 -16.5 -1.11%
Soybeans Aug 2014 1401.75 -14.25 -1.01%
Soybeans Sep 2014 1273.75 -3.25 -0.25%
Soybeans Nov 2014 1217.75 -4.75 -0.39%
Soybeans Jan 2015 1223.75 -5 -0.41%
Soybeans Mar 2015 1227.75 -5.75 -0.47%
Soybean Meal Jul 2014 481.4 -5.1 -1.05%
Soybean Meal Aug 2014 455.4 -4 -0.87%
Soybean Meal Sep 2014 420.4 -0.8 -0.19%
Soybean Oil Jul 2014 41.04 -0.34 -0.82%
Soybean Oil Aug 2014 40.99 -0.3 -0.73%
Soybean Oil Sep 2014 40.92 -0.23 -0.56%
Corn Jul 2014 484.25 -11.25 -2.27%
Corn Sep 2014 481 -9.75 -1.99%
Corn Dec 2014 480.5 -8.5 -1.74%
Corn Mar 2015 488.5 -8.5 -1.71%
Corn May 2015 494.25 -8.75 -1.74%
Oats Jul 2014 350.5 -5.75 -1.61%
Oats Sep 2014 339.5 -3.25 -0.95%
Oats Dec 2014 332.5 -2 -0.60%
Oats Mar 2015 327 -4.25 -1.28%
Oats May 2015 323 -1.5 -0.46%
Wheat Jul 2014 678.25 -12 -1.74%
Wheat Sep 2014 687 -12 -1.72%
Wheat Dec 2014 702.75 -12.25 -1.71%
Wheat Mar 2015 717 -12.75 -1.75%
Wheat May 2015 724 -13.5 -1.83%
Minneapolis
Spring Wheat Jul 2014 755 -23.25 -2.99%
Spring Wheat Sep 2014 762.75 -20.75 -2.65%
Spring Wheat Dec 2014 768.5 -24.25 -3.06%
Spring Wheat Mar 2015 773.5 -24.75 -3.10%
Spring Wheat May 2015 774.5 -24.5 -3.07%
Kansas City
KC HRW Wheat Jul 2014 778.75 -27.5 -3.41%
KC HRW Wheat Sep 2014 784 -26.75 -3.30%
KC HRW Wheat Dec 2014 796 -25.25 -3.07%
KC HRW Wheat Mar 2015 799.5 -24.25 -2.94%
KC HRW Wheat May 2015 792 -24.5 -3.00%
The Bank of Canada’s noon rate for the loonie was 91.85 cents US, steady with the day before. The U.S. dollar was $1.0887 Cdn.
Crude oil June futures on the Chicago market fell 87 cents to $101.50 per barrel.
The TSX composite was lower on weaker oil prices and questions about what will lead the market higher after gaining about seven percent so far this year.
U.S. stocks were also taking a breather after recent gains. Wal-Mart posted weaker than expected forecast for quarterly profits. There is weakness in small cap stocks.
Also Russia’s president Vladimir Putin said he would cut off the natural gas supply to Europe June 1 if Ukraine does not pay its gas bills, which have reached $3.5 billion.
In early tallies, the TSX closed down 84.84 points, or 0.58 percent at 14,588.89.
The Dow Jones industrial average fell 167.16 points or 1.01 percent, to end at 16,446.81.
The S&P 500 lost 17.68 points or 0.94 percent, to finish at 1,870.85.
The Nasdaq Composite dropped 31.33 points or 0.76 percent, to close at 4,069.29.
