A cold shock in the southern U.S. Plains and the heat of political and civil conflict in Ukraine drove wheat prices higher Monday.
Kansas City wheat futures reflected the cold damage most, with the May contract risng 22 cents per bushel or more than three percent.
Chicago May wheat rose 18 cents and Minneapolis spring wheat rose 15 cents per bushel.
Other crop futures also rose but less aggressively, with soybeans climbing more than one percent but canola rising only about 0.65 percent.
Oat futures were the weakest of the North American prairie crops, staying unchanged for the May contract and rising two cents for the July.
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With harvest underway across the Canadian Prairies rumblings has been felt from the other side of the world, specifically in regards yellow peas. There have been recent media reports stating the Indian government is under growing domestic pressure to end its duty-free period on yellow pea imports.
The U.S. hard red winter wheat crop was already in poor condition before a cold snap took temperatures well below freezing Sunday night and Monday morning, with forecasts of more dangerous lows for Monday night and Tuesday morning.
The HRWW crop suffered with cold and dry soils for most of the winter, but is particularly vulnerable now. Many crops are in the jointing stage and that exposes them to freeze damage.
U.S. spring crops are beginning to be planted in the southern Plains and Midwest U.S.
Continued strife in Ukraine has markets fretting that Ukrainian and Russian grain exports could be disrupted and production for 2014 damaged.
Not only could shipments be affected by turmoil, but farmers might either not be able to use the inputs they want when they want, or might pull back from investing in their crops because of uncertainty. Also, Ukraine’s devalued currency makes imported inputs expensive.
Corn might be most affected because it is not yet seeded and it requires more inputs than other spring crops such as barley.
The Ukrainian situation continues to hang over markets. Some analysts say Ukraine’s winter wheat crop is in poor condition, suffering from dry weather, but a CWB analyst visiting the country said many areas got good rain in recent days.
Rather than fading after the Crimean annexation, tensions in large parts of eastern Ukraine are spreading, with no sign of Russia or ethnic Russian forces in many areas backing away from pushing secession from Ukraine. Continued instability going into spring is likely to roil markets more as crucial field operations begin.
Winnipeg ICE Futures Canada dollars per tonne
Canola May 2014 464.00 +3.00 +0.65%
Canola Jul 2014 473.00 +2.90 +0.62%
Canola Nov 2014 487.30 +2.70 +0.56%
Canola Jan 2015 494.20 +2.60 +0.53%
Milling Wheat May 2014 217.00 +6.00 +2.84%
Milling Wheat Jul 2014 215.00 +6.00 +2.87%
Milling Wheat Oct 2014 218.00 +6.00 +2.83%
Durum Wheat May 2014 250.00 unch 0.00%
Durum Wheat Jul 2014 250.00 unch 0.00%
Durum Wheat Oct 2014 252.00 unch 0.00%
Barley May 2014 138.50 +1.00 +0.73%
Barley Jul 2014 136.50 +1.00 +0.74%
Barley Oct 2014 136.50 +1.00 +0.74%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans May 2014 1476.25 +13.25 +0.91%
Soybeans Jul 2014 1463.5 +16.25 +1.12%
Soybeans Aug 2014 1392.25 +13.25 +0.96%
Soybeans Sep 2014 1277 +9.25 +0.73%
Soybeans Nov 2014 1220 +5.25 +0.43%
Soybeans Jan 2015 1225.25 +5 +0.41%
Soybean Meal May 2014 479.1 +6.2 +1.31%
Soybean Meal Jul 2014 468.6 +5.5 +1.19%
Soybean Meal Aug 2014 442.4 +4.8 +1.10%
Soybean Oil May 2014 42.26 +0.16 +0.38%
Soybean Oil Jul 2014 42.46 +0.2 +0.47%
Soybean Oil Aug 2014 42.29 +0.21 +0.50%
Corn May 2014 503 +4.5 +0.90%
Corn Jul 2014 509.25 +4.75 +0.94%
Corn Sep 2014 506.75 +4.25 +0.85%
Corn Dec 2014 503.5 +4.25 +0.85%
Corn Mar 2015 511 +4 +0.79%
Oats May 2014 403.5 unch 0.00%
Oats Jul 2014 357.5 +2 +0.56%
Oats Sep 2014 340.5 -2.75 -0.80%
Oats Dec 2014 332.25 +1 +0.30%
Oats Mar 2015 329.5 -0.25 -0.08%
Wheat May 2014 678.75 +18.5 +2.80%
Wheat Sep 2014 696.25 +18.25 +2.69%
Wheat Dec 2014 709 +17.25 +2.49%
Wheat Mar 2015 721 +16.75 +2.38%
Minneapolis
Spring Wheat May 2014 717.25 +15.5 +2.21%
Spring Wheat Jul 2014 725.75 +16.25 +2.29%
Spring Wheat Sep 2014 731.75 +16.25 +2.27%
Spring Wheat Dec 2014 743.25 +16.75 +2.31%
Spring Wheat Mar 2015 751 +15.75 +2.14%
Kansas City
KC HRW Wheat May 2014 742 +22.5 +3.13%
KC HRW Wheat Jul 2014 748.25 +22.25 +3.06%
KC HRW Wheat Sep 2014 755.25 +20.75 +2.83%
KC HRW Wheat Dec 2014 765 +19.75 +2.65%
KC HRW Wheat Mar 2015 769.25 +18.75 +2.50%
Light crude oil nearby futures in New York rose 31 cents at $104.05 US per barrel.
The Toronto Stock Exchange’s S&P/TSX composite index was up 26.74 points, or 0.19 percent, at 14,284.43.
The Dow Jones industrial average shot up 146.49 points, or 0.91 percent, to end at 16,173.24.
The Standard & Poor’s 500 Index gained 14.92 points, or 0.82 percent, to finish at 1,830.61.
The Nasdaq Composite Index advanced 22.96 points, or 0.57 percent, to close at 4,022.69.
