Canola futures down on weaker veg oil as seeding nears completion

July canola shed 60 cents per tonne while the November contract fell $4.40 on Tuesday, weighed down by weaker soy oil and the wrapping up of seeding.

Manitoba Agriculture today said that 85 percent of the crop was in the ground, with the poorest progress in the southwest where only 65 to 70 percent was complete.

Where crops are seeded they are germinating and advancing rapidly with good to excellent stand establishment, Manitoba Agriculture said.

The market will be readjusting its acreage estimates to account for the land that will not be seeded this year in Western Canada.

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So far traders appear to think that generally adequate growing conditions and soil moisture are outweighing the concerns about unseeded acres.

Statistics Canada’s seeded area report is expected on June 27.

Wheat futures fell today. Chicago July wheat briefly dipped below $6 per bushel for the first time since Feb. 28. Traders were positioning ahead of the USDA monthly supply and demand report on Wednesday.

Reuters reported that the trade expects USDA to raise its forecast of year-end domestic wheat stocks for the current crop year and for 2014-15.

However, the global ending stocks estimate for 2014-15 is expected to decline from last month.

Wheat was also under pressure as the U.S. winter wheat harvest advanced. Nine percent was harvested as of Sunday.

July and November soybeans closed slightly higher on expectations that the USDA report will further trim U.S. ending stocks.

Soy oil fell on profit taking and on lower Malaysian palm futures. Palm stocks in Malaysia at the end of May were up 4.2 percent, topping expectations.

Corn fell on good growing conditions.

Russia’s Institute for Agricultural Market Studies has cut its outlook for the grain harvest to 93.5 million tonnes from 96 million previously, because of dry weather in the central and Volga regions. Its wheat forecast fell to 53 million tonnes from 54.5 million, Reuters reported.

Last week Russia deputy agriculture minister said the country would harvest 97 million tonnes of grain.

U.S. satellite-based forecaster MDA Cropcast has pegged the Russian wheat crop at 45 million tonnes, Reuters reported.

Rain is forecast for later this week in the region.

USDA’s May forecast for Russian wheat was 52 million tonnes.

Meanwhile Ukraine is on track for a record harvest, although the effects of reduced fertilizer application are not yet clear, according to IKAR.

Winnipeg ICE Futures Canada dollars per tonne

Canola Jul 2014 461.70 -0.60 -0.13%

Canola Nov 2014 458.70 -4.40 -0.95%

Canola Jan 2015 464.30 -4.40 -0.94%

Canola Mar 2015 467.30 -4.20 -0.89%

Canola May 2015 469.30 -4.20 -0.89%

Milling Wheat Jul 2014 207.00 -1.00 -0.48%

Milling Wheat Oct 2014 208.00 -1.00 -0.48%

Milling Wheat Dec 2014 211.00 -2.00 -0.94%

Durum Wheat Jul 2014 251.00 unch 0.00%

Durum Wheat Oct 2014 242.00 unch 0.00%

Durum Wheat Dec 2014 244.00 unch 0.00%

Barley Jul 2014 135.00 unch 0.00%

Barley Oct 2014 125.00 -5.00 -3.85%

Barley Dec 2014 127.00 -5.00 -3.79%

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

Chicago

Soybeans Jul 2014 1462.5 +5.5 +0.38%

Soybeans Aug 2014 1395.25 +0.75 +0.05%

Soybeans Sep 2014 1270.25 +3.25 +0.26%

Soybeans Nov 2014 1229.5 +5.25 +0.43%

Soybeans Jan 2015 1236 +5.25 +0.43%

Soybeans Mar 2015 1241.75 +6 +0.49%

Soybean Meal Jul 2014 484.5 +2.3 +0.48%

Soybean Meal Aug 2014 458.1 +3.1 +0.68%

Soybean Meal Sep 2014 424.7 +3 +0.71%

Soybean Oil Jul 2014 38.94 -0.34 -0.87%

Soybean Oil Aug 2014 39.07 -0.35 -0.89%

Soybean Oil Sep 2014 39.08 -0.43 -1.09%

Corn Jul 2014 445.5 -5.5 -1.22%

Corn Sep 2014 441.25 -6.25 -1.40%

Corn Dec 2014 445 -5 -1.11%

Corn Mar 2015 455.5 -4.25 -0.92%

Corn May 2015 462.25 -4.25 -0.91%

Oats Jul 2014 347.5 +4.5 +1.31%

Oats Sep 2014 334.5 +5.25 +1.59%

Oats Dec 2014 329.5 +8.25 +2.57%

Oats Mar 2015 323.75 +8.25 +2.61%

Oats May 2015 321.25 +8 +2.55%

Wheat Jul 2014 601.25 -11.25 -1.84%

Wheat Sep 2014 613 -11.75 -1.88%

Wheat Dec 2014 637 -11.25 -1.74%

Wheat Mar 2015 658 -10 -1.50%

Wheat May 2015 671 -8.25 -1.21%

Minneapolis

Spring Wheat Jul 2014 699.5 -5 -0.71%

Spring Wheat Sep 2014 705.75 -4.25 -0.60%

Spring Wheat Dec 2014 716.75 -4 -0.55%

Spring Wheat Mar 2015 725.25 -4.5 -0.62%

Spring Wheat May 2015 729.25 -5.25 -0.71%

Kansas City

KC HRW Wheat Jul 2014 726 -7.75 -1.06%

KC HRW Wheat Sep 2014 729.5 -7.25 -0.98%

KC HRW Wheat Dec 2014 739.25 -7.25 -0.97%

KC HRW Wheat Mar 2015 744.25 -7.25 -0.96%

KC HRW Wheat May 2015 742.25 -7.5 -1.00%

Light crude oil nearby futures in New York dropped 6 cents at $104.35 US per barrel.

The Canadian dollar at noon was 91.62 cents US, down from 91.66 cents the previous trading day. The U.S. dollar at noon was $1.0915 Cdn.

In unofficial tallies —

The TSX composite closed up 33.17 points or 0.22 percent at 14,904.38, supported by stronger gold company shares.

The Dow gained 2.82 points or 0.02 percent to close at 16,945.92.

The S&P 500 dipped just 0.48 of a point or 0.02 percent, to finish at 1,950.79.

The Nasdaq Composite gained 1.75 points or 0.04 percent, to close at 4,338.00.

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