Wheat was hammered lower by a U.S. Department of Agriculture supply and demand report that increased the forecast for U.S. domestic wheat year end stocks and world year end stocks.
Chicago December wheat fell 3.24 percent and Winnipeg milling wheat fell 5.35 percent (but the ICE wheat contract saw only 30 trades).
Minneapolis December hard spring wheat fell less, closing only 1.5 percent lower.
Wheat’s decline pressured corn and oilseeds lower.
January canola closed down $5.10 at $593 per tonne, down 0.85 percent.
The loonie appreciated against the U.S. buck, adding pressure to canola.
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• U.S. wheat exports have not been moving fast enough to match what was USDA’s year end stocks projection so the department raised its forecast to 754 million bu., which was at the high end of trade expectations and up from the November estimate of 704 million bu.
• It also increased its estimate of global wheat production and ending stocks, reflecting new larger production projections for Canada, China and Australia. The Australia crop increase, to 22 million tonnes from 21 million, was surprising given the weather problems there, but they might have affected quality more than quantity.
The increase for Canada matched the numbers Statistics Canada released last week.
USDA’s projection for American corn and soybean ending stocks were neutral to slightly bullish. It kept its soybean crop forecasts for Argentina and Brazil steady.
• Falling palm oil prices, sparked by burdensome supplies, continue to be a bearish factor on the oilseed market. Oilseed analysts Oil World today predicted that the relative cheapness of palm oil will spark improved demand in the coming few months as South America runs out of soybeans to crush before its harvest.
That will start to lift palm prices, however, the increased sales of palm oil could displace more expensive canola oil and soy oil from Canada and elsewhere.
Winnipeg (per tonne)
Canola Jan 13 $593.00, down $5.10 -0.85%
Canola Mar 13 $589.80, down $5.40 -0.91%
Canola May 13 $588.10, down $5.50 -0.93%
Canola Jul 13 $583.70, down $5.20 -0.88%
Milling Wheat Dec 12 $270.70, down $15.30 -5.35%
Milling Wheat Mar 13 $290.50, down $8.00 -2.68%
Milling Wheat May 13 $293.50, down $8.00 -2.65%
Durum Wheat Dec 12 $312.00, unchanged
Durum Wheat Mar 13 $316.00, unchanged
Durum Wheat May 13 $320.00, unchanged
Barley Dec 12 $245.00, unchanged
Barley Mar 13 $248.00, unchanged
Barley May 13 $249.00, unchanged
Chicago (per bushel)
Soybeans (P) Jan 13 $1472, down 2.75 -0.19%
Soybeans (P) Mar 13 $14.71-2, down 4.25 -0.29%
Soybeans (P) May 13 $14.59-0, down 3.75 -0.26%
Soybeans (P) Jul 13 $14.46-0, down 5.5 -0.38%
Corn (P) Dec 12 $7.24-2, down 2.5 -0.34%
Corn (P) Mar 13 $7.28, down 2.0 -0.27%
Corn (P) May 13 $7.305, down 1.75 -0.24%
Oats (P) Dec 12 $3.7275, down 1.25 -0.33%
Oats (P) Mar 13 $3.88, down 1.0 -0.26%
Oats (P) May 13 $3.9225, unchanged
Minneapolis (per bushel)
Spring Wheat Dec 12 $8.9675, down 13.75 -1.51%
Spring Wheat Mar 13 $9.11, down 16.0 -1.73%
Spring Wheat May 13 $9.22, down 15.0 -1.60%
Spring Wheat Jul 13 $9.29, down 14.75-1.56%
Nearby light crude rose 23 cents to $85.79 per barrel.
The Bank of Canada’s noon rate for the loonie is $1.0135 US, up from $1.0130.
The U.S. buck is 98.67 cents Cdn.
A better than expected report on German business confidence and stronger U.S. tech stocks led stock markets higher.
The Toronto Stock Exchange’s S&P/TSX composite index rose 1.89 points, or 0.42 percent, to close at 12,282.36.
The Dow Jones industrial average rose 78.56 points, or 0.60 percent, to close at 13,248.44.
The Standard & Poor’s 500 Index was up 9.29 points, or 0.65 percent, at 1,427.84.
The Nasdaq Composite Index climbed 35.34 points, or 1.18 percent, to finish at 3,022.30.
