Canola, grain little changed on favourable weather and exports

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Published: August 16, 2016

Crop futures closed little changed on Tuesday and there was little new market-moving news.

November canola closed at $465.60, down $2.90.

The overall situation is unchanged with expectations of large crops in Canada and the United States, but strong export demand, particularly for soybeans, limiting the downside in the near term.

High humidity and warm temperatures could throw up localized thunderstorms but North American forecast maps from the U.S. Weather Service show no major rain event in the Prairies over the next seven days.

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China to buy 12 million metric tons of soybeans this season, Bessent says

U.S. Treasury Secretary Scott Bessent said on Thursday that China has agreed to buy 12 million metric tons of American soybeans during the current season through January and has committed to buying 25 million tons annually for the next three years as part of a larger trade agreement with Beijing.

Uncertainty over access to the China market due to the new one percent dockage rule that kicks in Sept. 1 also weighed on canola.

In the U.S., eastern parts of the Midwest got needed rain, maintaining the expectation that the soybean crop will hit a record.

Soy oil futures rose for a fifth straight session, supported by rising crude oil and strong exports of Malaysian palm oil to China and India.

The rising crude oil price is causing the Canadian dollar to rise to a seven week high against its U.S. counterpart.

Chicago soft wheat edged higher on short covering and it was a similar story in corn. Kansas wheat was down a fraction and Minneapolis hard red spring wheat was little changed.

U.S. stock indexes came off all time highs set on Monday. The head of the New York Federal Reserve bank said he thought an interest rate hike could come sooner than later, but other data showed U.S. consumer prices unchanged in July, indicating no build up in inflation.

The Toronto Stock Exchange’s S&P/TSX composite index fell 73.58 points, or 0.5 percent, to 14,703.44.

The Dow Jones industrial average fell 84.03 points, or 0.45 percent, to 18,552.02, the S&P 500 lost 12 points, or 0.55 percent, to 2,178.15 and the Nasdaq Composite dropped 34.90 points, or 0.66 percent, to 5,227.11.

Light crude oil nearby futures in New York were up 84 cents to US$46.58 per barrel.

The Canadian dollar at noon was US77.75 cents, up from 77.39 cents the previous trading day. The U.S. dollar at noon was C$1.2862.

 

Winnipeg ICE Futures Canada dollars per tonne

Canola Nov 2016   465.60   -2.90   -0.62%

Canola Jan 2017   472.00   -3.00   -0.63%

Canola Mar 2017   477.90   -2.70   -0.56%

Canola May 2017   482.70   -2.90   -0.60%

Canola Jul 2017   486.80   -2.70   -0.55%

 

Milling Wheat Oct 2016   213.00   -1.00   -0.47%

Milling Wheat Dec 2016   216.00   -1.00   -0.46%

Milling Wheat Mar 2017   221.00   -1.00   -0.45%

 

Durum Wheat Oct 2016   262.00   +1.00   +0.38%

Durum Wheat Dec 2016   265.00   +1.00   +0.38%

Durum Wheat Mar 2017   269.00   +1.00   +0.37%

 

Barley Oct 2016   138.00   unch   0.00%

Barley Dec 2016   138.00   unch   0.00%

Barley Mar 2017   140.00   unch   0.00%

 

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

 

Chicago

Soybeans Sep 2016   1019.50   -4.25   -0.42%

Soybeans Nov 2016   1007.25   -2.00   -0.20%

Soybeans Jan 2017   1007.00   -1.50   -0.15%

Soybeans Mar 2017   998.75   -3.00   -0.30%

Soybeans May 2017   995.00   -4.00   -0.40%

Soybeans Jul 2017   995.25   -3.75   -0.38%

 

Soybean Meal Sep 2016   336.70   -2.90   -0.85%

Soybean Meal Oct 2016   334.20   -2.70   -0.80%

Soybean Meal Dec 2016   332.30   -2.40   -0.72%

 

Soybean Oil Sep 2016   33.38   +0.17   +0.51%

Soybean Oil Oct 2016   33.52   +0.17   +0.51%

Soybean Oil Dec 2016   33.82   +0.18   +0.54%

 

Corn Sep 2016   327.50   +1.00   +0.31%

Corn Dec 2016   337.25   +0.25   +0.07%

Corn Mar 2017   347.25   +0.25   +0.07%

Corn May 2017   353.75   unch   0.00%

Corn Jul 2017   360.25   -0.25   -0.07%

 

Oats Sep 2016   172.50   +0.50   +0.29%

Oats Dec 2016   187.25   +0.75   +0.40%

Oats Mar 2017   197.75   +1.00   +0.51%

Oats May 2017   202.75   unch   0.00%

Oats Jul 2017   205.75   +1.50   +0.73%

 

Wheat Sep 2016   423.50   +1.50   +0.36%

Wheat Dec 2016   439.50   +1.25   +0.29%

Wheat Mar 2017   457.75   +1.50   +0.33%

Wheat May 2017   469.50   +2.00   +0.43%

Wheat Jul 2017   477.50   +2.25   +0.47%

 

Minneapolis

Spring Wheat Sep 2016   516.50   +1.25   +0.24%

Spring Wheat Dec 2016   516.50   -0.50   -0.10%

Spring Wheat Mar 2017   527.75   -1.00   -0.19%

Spring Wheat May 2017   535.75   -1.50   -0.28%

Spring Wheat Jul 2017   544.75   -1.75   -0.32%

 

Kansas City

Hard Red Wheat Sep 2016   411.25   -0.50   -0.12%

Hard Red Wheat Dec 2016   437.25   -0.50   -0.11%

Hard Red Wheat Mar 2017   453.00   -0.50   -0.11%

Hard Red Wheat May 2017   463.00   -0.75   -0.16%

Hard Red Wheat Jul 2017   472.50   -0.50   -0.11%

 

Chicago livestock futures in US¢/pound (rounded to two decimal places)

Live Cattle (P) Aug 2016   115.50   -0.42   -0.36%

Live Cattle (P) Oct 2016   113.40   -0.57   -0.50%

Live Cattle (P) Dec 2016   114.25   -0.88   -0.76%

 

Feeder Cattle (P) Aug 2016   147.12   -1.53   -1.03%

Feeder Cattle (P) Sep 2016   145.58   -1.49   -1.01%

Feeder Cattle (P) Oct 2016   142.78   -1.10   -0.76%

 

Lean Hogs (P) Oct 2016   59.85   -2.65   -4.24%

Lean Hogs (P) Dec 2016   55.45   -1.58   -2.77%

Lean Hogs (P) Feb 2017   60.12   -1.18   -1.92%

 

 

About the author

D'Arce McMillan

Markets editor, Saskatoon newsroom

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