Canola futures rally on weak loonie but US crops fall

Good crop prospects in the United States, profit taking and a stronger U.S. dollar were the major features in Tuesday’s lower Chicago crop market futures.

But canola climbed a little, supported by the falling Canadian dollar.

Chicago old crop wheat and corn were down more than three percent.

Oilseeds fared better, with soybean down only about one percent and soybean oil down less than one percent. Downgrades to Argentina’s soy crop because of heavy rain at harvest helped limit the losses in the soy complex.

Old and new crop canola rallied slightly with support from the falling loonie.

Prairie farmers will make quick seeding progress this week in hotter than normal conditions, but worries are growing about dry soil in central Saskatchewan and parts of Alberta.

Long range models from the U.S. weather service indicate that there could be a shift mid month with cooler and wetter weather in the second half of May.

The USDA crop progress reports Monday were bearish for grain prices

The USDA said that 45 percent of U.S. corn was seeded as of May 1, ahead of the five-year average of 30 percent.

In soybeans, eight percent was seeded, ahead of the average of six percent.

The winter wheat crop was 61 percent good to excellent, up two points from 59 percent the week before. That is much ahead of the five-year average at 43 percent.

Although U.S. winter wheat acreage is down, strong yields could lead to a larger harvest than last year.

The U.S. dollar rallied against most currencies today, putting pressure on American crop markets. The U.S. buck tends to rise when oil prices fall

While down today, oil has generally rallied for the past two and a half months, pushing down the American dollar and lifting the loonie. The weaker US buck helped to fuel a commodity rally.

On Friday crude oil hit the highest point since early December but fell Monday and today on signs of growing U.S. surplus stocks and rising production from the Middle East. Hopes that OPEC and other oil exporters would freeze production growth are fading.

Light crude oil nearby futures in New York today closed down $1.13 cents at US$43.65 per barrel.

The Canadian dollar at noon was US78.83 cents, down from 79.69 cents the previous trading day. The U.S. dollar at noon was C$1.2686.

Light crude oil nearby futures in New York were down $1.13 cents to US$43.65 per barrel.

The Canadian dollar at noon was US78.83 cents, down from 79.69 cents the previous trading day. The U.S. dollar at noon was C$1.2686.

Weak monthly reports on Chinese and British manufacturing output cast a cloud over stock markets.

The Dow Jones industrial average closed down 140.25 points, or 0.78 percent, to 17,750.91, the S&P 500 lost 18.06 points, or 0.87 percent, to 2,063.37 and the Nasdaq Composite dropped 54.37 points, or 1.13 percent, to 4,763.22.

The Toronto Stock Exchange’s S&P/TSX composite index closed down 157.95 points, or 1.14 percent, at 13,707.68.

Winnipeg ICE Futures Canada dollars per tonne

Canola May 2016 497.60 -1.10 -0.22%

Canola Jul 2016 503.60 +3.90 +0.78%

Canola Nov 2016 498.80 +2.80 +0.56%

Canola Jan 2017 502.00 +2.40 +0.48%

Canola Mar 2017 502.80 +2.40 +0.48%

Milling Wheat May 2016 235.00 -5.00 -2.08%

Milling Wheat Jul 2016 233.00 -5.00 -2.10%

Milling Wheat Oct 2016 228.00 -5.00 -2.15%

Durum Wheat May 2016 303.00 unch 0.00%

Durum Wheat Jul 2016 298.00 unch 0.00%

Durum Wheat Oct 2016 293.00 unch 0.00%

Barley May 2016 172.00 unch 0.00%

Barley Jul 2016 174.00 unch 0.00%

Barley Oct 2016 174.00 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 2016 1021.5 -14 -1.35%

Soybeans Jul 2016 1030 -13.75 -1.32%

Soybeans Aug 2016 1032 -12 -1.15%

Soybeans Sep 2016 1019 -10 -0.97%

Soybeans Nov 2016 1010.25 -7.5 -0.74%

Soybeans Jan 2017 1011 -8.25 -0.81%

Soybean Meal May 2016 339.5 -5.8 -1.68%

Soybean Meal Jul 2016 341.8 -5.5 -1.58%

Soybean Meal Aug 2016 340.2 -4.8 -1.39%

Soybean Oil May 2016 32.13 -0.06 -0.19%

Soybean Oil Jul 2016 32.41 -0.09 -0.28%

Soybean Oil Aug 2016 32.54 -0.09 -0.28%

Corn May 2016 378.25 -12 -3.07%

Corn Jul 2016 379.75 -12 -3.06%

Corn Sep 2016 381.5 -10.75 -2.74%

Corn Dec 2016 387 -9.5 -2.40%

Corn Mar 2017 395.5 -9 -2.22%

Oats May 2016 186.75 -5.5 -2.86%

Oats Jul 2016 199 -6.5 -3.16%

Oats Sep 2016 209.5 -4.75 -2.22%

Oats Dec 2016 219 -4.5 -2.01%

Oats Mar 2017 228.75 -4.5 -1.93%

Wheat May 2016 459.75 -17.25 -3.62%

Wheat Jul 2016 470.75 -17 -3.49%

Wheat Sep 2016 481.25 -17.25 -3.46%

Wheat Dec 2016 498.75 -18 -3.48%

Wheat Mar 2017 515.5 -18.5 -3.46%

Minneapolis

Spring Wheat May 2016 534.25 -9.75 -1.79%

Spring Wheat Jul 2016 536.25 -12.5 -2.28%

Spring Wheat Sep 2016 544.25 -13 -2.33%

Spring Wheat Dec 2016 554.75 -13 -2.29%

Spring Wheat Mar 2017 562.75 -12.75 -2.22%

Kansas City

Hard Red Wheat May 2016 442 -19 -4.12%

Hard Red Wheat Jul 2016 455.75 -18.5 -3.90%

Hard Red Wheat Sep 2016 472.25 -17.75 -3.62%

Hard Red Wheat Dec 2016 496.75 -17.25 -3.36%

Hard Red Wheat Mar 2017 512.25 -16.5 -3.12%