Canola futures fall with other crops on ample supply

The U.S. Federal Reserve on Wednesday afternoon raised interest rates for the first time since 2006.
The 25 basis point increase was widely expected and now the market is assessing the Fed’s comments about further increases in 2016.
Higher U.S. interest rates will support the U.S. dollar and discourage American grain and oilseed exports.
Crop markets were already dipping lower before the Fed announcement.
In Canada, the canola futures prices slid lower with January closing at $473, down $2.20, following soybeans and soy oil lower, as well as weaker crude oil markets.

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U.S. grains: Soybean futures jump on hopes for US export demand

Chicago Board of Trade soybean futures jumped on hopes for U.S. export demand on Wednesday, while corn futures rose for a third day to extend a recovery from contract lows, analysts said.

American lawmakers did not approve an amendment that would have shifted a biofuel tax credit to biofuel producers instead of blenders. If passed the amendment would have encouraged greater use of American made biofuel and discouraged imported biofuel.
The market generally is again focusing on ample global supplies of grain and oilseeds.
Chicago wheat futures fell the most, dropping 1.9 percent. Corn lost 1.7 percent and soybeans shed 0.4 percent.
“Like the other grains, there is not much happy happening in the wheat on the upside now,” Charlie Sernatinger, global head of grain futures at ED&F Man Capital, said in a note to clients. “The export demand (for American grain) is horrible, the cash markets are heavy … and now the charts are turning their momentum down.”
Prospects for increased competition on the export market added to the bearish tone hanging over the market. Argentina will announce a much-anticipated relaxation of currency controls on Wednesday, the government said, setting the stage for a weakening of the local peso and an increase of soybean shipments from the world’s No. 3 exporter.
“There is just no real strong enthusiasm for buying in,” said Bill Gentry, a broker at Risk Management Commodities in Lafayette, Indiana.
CBOT January soybean futures hit a three-week low during the session.
Weakness in the crude oil market added to the pressure on soybeans. Oil prices were trending near multi-year lows as a weekly read of U.S. crude and refined production stocks climbed to a record high.
The U.S. government also reported that ethanol inventories rose to their highest since mid-June. That weighed on the corn market. The Energy Information Administration said ethanol stocks rose by 493,000 barrels to 20.32 million.
Light crude oil nearby futures in New York were down $1.83 to US$35.52 per barrel.
The Bank of Canada rate for the Canadian dollar at noon was US72.44 cents, up from 72.84 cents the previous trading day. The U.S. dollar at noon was C$1.38.05.
Stock markets generally liked the tone of the Federal Reserve announcements.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 246.51 points, or 1.91 percent, at 13,166.08 points.
The Dow Jones industrial average rose 224.18 points, or 1.28 percent, to 17,749.09, the S&P 500 gained 29.66 points, or 1.45 percent, to 2,073.07 and the Nasdaq Composite added 75.78 points, or 1.52 percent, to 5,071.13.

Winnipeg ICE Futures Canada dollars per tonne
Canola Jan 2016 473.00 -2.20 -0.46%
Canola Mar 2016 482.10 -2.80 -0.58%
Canola May 2016 488.60 -3.10 -0.63%
Canola Jul 2016 493.30 -3.50 -0.70%
Canola Nov 2016 487.30 -4.60 -0.94%

Milling Wheat Mar 2016 240.00 -3.00 -1.23%
Milling Wheat May 2016 244.00 -2.00 -0.81%
Milling Wheat Jul 2016 248.00 -2.00 -0.80%

Durum Wheat Mar 2016 315.00 unch 0.00%
Durum Wheat May 2016 320.00 unch 0.00%
Durum Wheat Jul 2016 320.00 unch 0.00%

Barley Mar 2016 184.00 unch 0.00%
Barley May 2016 190.00 unch 0.00%
Barley Jul 2016 192.00 unch 0.00%

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

Chicago
Soybeans Jan 2016 862.5 -4.75 -0.55%
Soybeans Mar 2016 863.25 -4.5 -0.52%
Soybeans May 2016 869 -4.5 -0.52%
Soybeans Jul 2016 875.25 -4.75 -0.54%
Soybeans Aug 2016 877.75 -4.25 -0.48%
Soybeans Sep 2016 877 -4.25 -0.48%

Soybean Meal Jan 2016 269.9 -1.9 -0.70%
Soybean Meal Mar 2016 271.8 -2.1 -0.77%
Soybean Meal May 2016 274.2 -2.1 -0.76%

Soybean Oil Jan 2016 30.37 -0.33 -1.07%
Soybean Oil Mar 2016 30.6 -0.34 -1.10%
Soybean Oil May 2016 30.8 -0.3 -0.96%

Corn Mar 2016 369.75 -7.5 -1.99%
Corn May 2016 375.25 -7 -1.83%
Corn Jul 2016 380.5 -6.75 -1.74%
Corn Sep 2016 384 -6.75 -1.73%
Corn Dec 2016 391.25 -6.5 -1.63%

Oats Mar 2016 223 -4.75 -2.09%
Oats May 2016 223.75 -4.5 -1.97%
Oats Jul 2016 226.25 -4.5 -1.95%
Oats Sep 2016 230.5 -2.75 -1.18%
Oats Dec 2016 230.75 -4.25 -1.81%

Wheat Mar 2016 483.5 -10.75 -2.18%

Wheat May 2016 490 -10.25 -2.05%
Wheat Jul 2016 495.5 -9.25 -1.83%
Wheat Sep 2016 505.25 -9.25 -1.80%
Wheat Dec 2016 519.25 -8.5 -1.61%

Minneapolis
Spring Wheat Mar 2016 505.75 -7 -1.37%
Spring Wheat May 2016 515.5 -7 -1.34%
Spring Wheat Jul 2016 525.25 -6.25 -1.18%
Spring Wheat Sep 2016 535.75 -6.75 -1.24%
Spring Wheat Dec 2016 551.75 -6.5 -1.16%

Kansas
Hard Red Wheat Mar 2016 481 -11.25 -2.29%
Hard Red Wheat May 2016 491.5 -10.5 -2.09%
Hard Red Wheat Jul 2016 502 -9.75 -1.91%
Hard Red Wheat Sep 2016 515.75 -9.75 -1.86%
Hard Red Wheat Dec 2016 533.25 -10 -1.84%