Corn futures led crop markets higher Monday, rising more than four percent for their largest daily gains in nearly six weeks on Monday.
Canola followed the U.S. market.
Traders bought corn on short covering on anticipation that the USDA report tomorrow will trim corn and soybean production forecasts.
Soybeans rose 3.5 percent on short covering and on ideas that hot dry weather now covering the Midwest will further trim soybean potential. Also, solid export inspections supported soybeans and the U.S. dollar slipped from a four-month high against an index of world currencies.
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Canola went along for the ride, but gains were limited as some analysts think the crop could be larger than the 12.5 million forcast during the CWB crop tour at the end of July.
A stronger loonie also limited the gain.
November canola closed at $511.40 up $5.20 or just over one percent.
A week of mostly hot dry weather is in the forecast for the Canadian Prairies. Likely most producers will like that after last week’s rainy weather in many areas.
Today’s Alberta Canola Producers Commission feed grain report pegged the average feed barley price at Lethbridge at $220 per tonne down from $226 last week.
Feed wheat was $218 ($220 last week), feed peas $244 ($247) and feed oats at $175 ($173)
Corn climbed above both its 50- and 100-day moving averages after breaching the 10-day moving average on Friday, Reuters reported.
Most analysts expect the weekly crop condition reports for corn and soybean, good to excellent, will drop by one percentage point this afternoon.
USDA will update its harvest forecast in its monthly supply and demand report on Wednesday. Traders expect the government to cut it’s average soybean yield estimate to 44.7 bushels per acre.
Wheat rose on spillover strength from corn and soybeans, and a weaker U.S. dollar, traders said.
Analysts expect the U.S. Department of Agriculture to raise its forecasts for U.S. 2015-16 wheat production and ending stocks in its monthly reports on Wednesday.
Paris wheat futures set a two-week high, led by concern about the French corn crop.
The government pegged the corn crop at 13.2 million tonnes this year, down 28 percent from a record 2014 crop. Last month’s USDA forecast for French corn was 14.5 million tonnes.
The French farm ministry raised its estimate for the soft wheat harvest to a record 39.3 million tonnes, up from 37.9 million tonnes forecast last month.
It trimmed slightly the rapeseed crop to five million tonnes, confirming a fall from last year’s harvest of 5.5 million.
Saudi Arabia bought 505,000 tonnes of hard wheat in an international tender which closed on Friday, the country’s state wheat buying agency Grain Silos and Flour Mills Organization said.
The companies that won the tenders were named, but not the country where the wheat will come from.
Bunge. part owner of G3 Canada, formerly CWB, won contacts for two 55,000 tonnes shipments of wheat at 12.5 percent protein.
Light crude oil nearby futures in New York were up $1.09 to US$44.96 per barrel. An outage at an Indiana refinery lifted gasoline futures and that spilled over to lift crude oil. Thw weaker U.S. dollar also supported crude oil.
The Canadian dollar at noon was US7659 cents, down from 76.21 cents the previous trading day. The U.S. dollar at noon was C$1.3056.
In unofficial early tallies:
The Toronto Stock Exchange’s S&P/TSX composite index closed up 163.69 points, or 1.14 percent, to 14,466.39
The Dow Jones industrial average rose 241.79 points, or 1.39 percent, to 17,615.17, the S&P 500 gained 26.56 points, or 1.28 percent, to 2,104.13 and the Nasdaq Composite added 58.25 points, or 1.16 percent, to 5,101.80.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2015 511.40 +5.20 +1.03%
Canola Jan 2016 510.30 +6.00 +1.19%
Canola Mar 2016 508.80 +6.40 +1.27%
Canola May 2016 504.30 +6.10 +1.22%
Canola Jul 2016 499.20 +6.30 +1.28%
Milling Wheat Oct 2015 222.00 +3.00 +1.37%
Milling Wheat Dec 2015 222.00 +3.00 +1.37%
Milling Wheat Mar 2016 226.00 +3.00 +1.35%
Durum Wheat Oct 2015 370.00 unch 0.00%
Durum Wheat Dec 2015 380.00 unch 0.00%
Durum Wheat Mar 2016 395.00 unch 0.00%
Barley Oct 2015 208.10 unch 0.00%
Barley Dec 2015 208.10 unch 0.00%
Barley Mar 2016 210.10 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Soybeans Sep 2015 1008.25 +32.75 +3.36%
Soybeans Nov 2015 994.5 +31.25 +3.24%
Soybeans Jan 2016 999.25 +31.25 +3.23%
Soybeans Mar 2016 992.25 +30 +3.12%
Soybeans May 2016 983 +28.75 +3.01%
Soybean Meal Aug 2015 362.5 +9.9 +2.81%
Soybean Meal Sep 2015 353.6 +9.3 +2.70%
Soybean Meal Oct 2015 346.2 +10 +2.97%
Soybean Oil Aug 2015 30.41 +0.38 +1.27%
Soybean Oil Sep 2015 30.49 +0.36 +1.19%
Soybean Oil Oct 2015 30.6 +0.36 +1.19%
Corn Sep 2015 390.25 +17.5 +4.69%
Corn Dec 2015 401 +17.25 +4.50%
Corn Mar 2016 412 +17.25 +4.37%
Corn May 2016 418 +16.75 +4.17%
Corn Jul 2016 422.25 +16.5 +4.07%
Oats Sep 2015 233.75 -2.25 -0.95%
Oats Dec 2015 247.75 +3.5 +1.43%
Oats Mar 2016 257.25 +2.75 +1.08%
Oats May 2016 262 +2 +0.77%
Oats Jul 2016 263 +2 +0.77%
Wheat Sep 2015 525.5 +15 +2.94%
Wheat Dec 2015 529.5 +13.75 +2.67%
Wheat Mar 2016 536.75 +13.75 +2.63%
Wheat May 2016 541.75 +14 +2.65%
Wheat Jul 2016 545.5 +13.75 +2.59%
Minneapolis
Spring Wheat Sep 2015 534.25 +9.25 +1.76%
Spring Wheat Dec 2015 550.5 +9.25 +1.71%
Spring Wheat Mar 2016 566.75 +8.5 +1.52%
Spring Wheat May 2016 578.5 +8.5 +1.49%
Spring Wheat Jul 2016 589.25 +7.75 +1.33%
Kansas
Hard Red Wheat Sep 2015 504.5 +11.5 +2.33%
Hard Red Wheat Dec 2015 525.5 +11.75 +2.29%
Hard Red Wheat Mar 2016 539.5 +12 +2.27%
Hard Red Wheat May 2016 549.5 +12 +2.23%
Hard Red Wheat Jul 2016 558.5 +11.75 +2.15%
