It was a tale of two markets Monday as canola and soybeans went different directions.
Canola fell while soybeans rose, for reasons traders said could have had to do with weather, positions and technical factors.
“Canola lagged dramatically,” said Ken Ball, a broker with P.I. Financial in Winnipeg.
“The way it looked, it could have been crushers taking profits on crush spreads.”
Canola’s weakness could have also been connected to the scattered showers that fell through Western Canada over the weekend, lessening the drought impact for those crops so blessed by rain.
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U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
Many traders feel the U.S. soybean crop acreage is not as big as the number U.S. Department of Agriculture is using, as well as expecting the crop condition to be lowered in the late Monday report.
Corn prices rose after Friday’s USDA finding that domestic consumption for ethanol and feed has been occurring at a faster pace than previously thought.
Wheat prices generally fell as the U.S. winter wheat comes in and world supplies continue to be ample with little risk of that changing soon.
On Friday, the USDA boosted world wheat stocks by 12 million tonnes. However, all that increase was in Chinese stocks and the market impact will likely be minimal.
Spring wheat was particularly weak after the western Canadian showers alleviated drought in some of the worst-affected areas.
Currency volatility continues to buffet world commodity markets, with the Greek crisis shoving exchange rates all over the place, depending on whatever recent development has occurred. Stock markets have also reacted. Monday markets generally rose as Greece’s capitulation to Germany demands that it embrace deflationary measures was seen by some as a positive for both the survival of the euro currency and the health of the European economy.
Light crude oil nearby futures in New York were down 54 cents to US$52.20 per barrel.
The Canadian dollar at noon was US78.36 cents, down from 78.65 cents the previous trading day. The U.S. dollar at noon was C$1.2762.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2015 540.00 -2.90 -0.53%
Canola Nov 2015 532.00 -2.90 -0.54%
Canola Jan 2016 531.90 -3.00 -0.56%
Canola May 2016 524.00 -3.00 -0.57%
Milling Wheat Jul 2015 244.00 -4.00 -1.61%
Milling Wheat Oct 2015 242.00 -3.00 -1.22%
Milling Wheat Dec 2015 242.00 -3.00 -1.22%
Durum Wheat Jul 2015 298.00 unch 0.00%
Durum Wheat Oct 2015 298.00 unch 0.00%
Durum Wheat Dec 2015 303.00 unch 0.00%
Barley Jul 2015 218.40 unch 0.00%
Barley Oct 2015 218.40 unch 0.00%
Barley Dec 2015 220.40 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2015 1045.25 +1.75 +0.17%
Soybeans Aug 2015 1037.5 +5.5 +0.53%
Soybeans Sep 2015 1029.5 +5.5 +0.54%
Soybeans Nov 2015 1028.5 +6.25 +0.61%
Soybeans Jan 2016 1034.5 +6.25 +0.61%
Soybeans Mar 2016 1028.5 +6.5 +0.64%
Soybean Meal Jul 2015 368 +2 +0.55%
Soybean Meal Aug 2015 356.7 +1.1 +0.31%
Soybean Meal Sep 2015 351.8 +0.3 +0.09%
Soybean Oil Jul 2015 32.65 +0.34 +1.05%
Soybean Oil Aug 2015 32.74 +0.32 +0.99%
Soybean Oil Sep 2015 32.84 +0.34 +1.05%
Corn Jul 2015 433.5 +6.25 +1.46%
Corn Sep 2015 440.75 +6 +1.38%
Corn Dec 2015 451.75 +6.75 +1.52%
Corn Mar 2016 461.75 +7 +1.54%
Corn May 2016 466.75 +7 +1.52%
Oats Jul 2015 247.75 -1.5 -0.60%
Oats Dec 2015 268 -1.5 -0.56%
Oats Mar 2016 278.25 -1.5 -0.54%
Oats May 2016 281.25 -1.25 -0.44%
Wheat Jul 2015 586.75 +5.25 +0.90%
Wheat Sep 2015 575.75 -0.25 -0.04%
Wheat Dec 2015 582 -1.5 -0.26%
Wheat Mar 2016 587.75 -3.25 -0.55%
Wheat May 2016 589 -5 -0.84%
Minneapolis
Spring Wheat Jul 2015 586.5 -10.75 -1.80%
Spring Wheat Sep 2015 597.25 -10.25 -1.69%
Spring Wheat Dec 2015 612.75 -8.75 -1.41%
Spring Wheat Mar 2016 624 -8.25 -1.30%
Spring Wheat May 2016 630.75 -8.25 -1.29%
Kansas City
Hard Red Wheat Jul 2015 558 +0.5 +0.09%
Hard Red Wheat Sep 2015 567.25 -5 -0.87%
Hard Red Wheat Dec 2015 587.5 -4.75 -0.80%
Hard Red Wheat Mar 2016 601.75 -4.5 -0.74%
Hard Red Wheat May 2016 610 -4 -0.65%
