Crop futures were mostly higher on Thursday with oilseeds supported by U.S. biofuel policy and strong monthly crush statistics and wheat by weather concerns.
Crops were mostly lower in early trade but turned higher later.
Canola finished higher even as moisture conditions improved across the Prairies.
The Canadian dollar dipped and that helped to support canola.
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Soy oil saw significant gains as the U.S. Environmental Protection Administration is expected to release new requirements for biofuel. Newspapers are reporting that the conventional corn-based biofuel requirements will stay the same, but the requirement for advanced biofuels, which include biodiesel, will increase slightly.
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Also supporting the soy complex was the monthly U.S. crush data that came in higher than expected.
U.S. weekly soybean export sales for old crop were within expectations but new crop export sales topped expectations.
WHEAT
Wheat rose as a wide area of Kansas was forecast to get thunderstorms today with a strong possibility of hail and high winds. The winter wheat crop in Kansas was four percent harvested as of June 11, according to the USDA. Also, there is concern that recent rain accumulations were not great in Montana and South Dakota, which have been suffering from drought.
EUROPE, UKRAINE, AUSTRALIA
Also European wheat was up a little on recent hot, dry weather and a forecast for the heat to continue for another 10 days.
Concern is also rising in Western Australia where it has been dry in the early part of its wheat growing season, although the eastern side of the country has adequate moisture.
Russia’s wheat crop is enjoying mostly good weather but today’s USDA weekly weather and crop bulletin said the drought in central Ukraine is intensifying.
“Latest satellite-derived vegetation health data depicted a sharp gradient between severe crop stress in the aforementioned areas of north-central Ukraine and good to excellent vegetation health from the Black Sea Coast into eastern Ukraine,” the report said.
Chicago soft winter wheat contracts were stronger than Minneapolis spring wheat today, indicating that funds are buying into worries about reduced wheat production. The Chicago market has a higher volume of trade and so tends to be a favoured venue of big funds.
Offsetting the gains was word that U.S. weekly export sales were at the low end of expectations.
SASKATCHEWAN CROP REPORT
The agriculture department’s weekly report said that seeding has mostly wrapped up. The northeast though is still behind because of excessively wet soil.
Recent rain has helped crops in southern areas that were stressed by dry weather.
The majority of the province’s crops are in fair-to-excellent condition, the report said.
A significant amount of crops are still behind normal development. Sixty percent of fall cereals, 62 percent of spring cereals, 53 of oilseeds and 70 percent of pulse crops are at their normal stages of development for this time of year, the report said.
INDIA MONSOON
The annual monsoon has arrived in India on schedule.
The country’s Meteorological Department has forecast that monsoon accumulations will be normal at 98 percent of the long term average.
The monsoon is critical for the summer crop and to fill reservoirs for irrigating winter crops.
OUTSIDE MARKETS
Light crude oil nearby futures in New York fell 27 cents to US$44.46 per barrel.
The Canadian dollar in the afternoon was trading at US$75.31 cents, down from 75.49 cents the previous trading day. The U.S. dollar was C$1.328.
The Toronto Stock Exchange’s S&P/TSX composite index lost 9.71 points, ending the session down 0.06 percent at 15,160.42.
The Dow Jones Industrial Average fell 14.32 points, or 0.07 percent, to 21,360.24, the S&P 500 lost 5.39 points, or 0.22 percent, to 2,432.53 and the Nasdaq Composite dropped 29.39 points, or 0.47 percent, to 6,165.50.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2017 513.00 +3.40 +0.67%
Canola Nov 2017 485.90 +4.10 +0.85%
Canola Jan 2018 491.90 +4.30 +0.88%
Canola Mar 2018 497.50 +4.40 +0.89%
Canola May 2018 499.70 unch 0.00%
Milling Wheat Jul 2017 268.00 unch 0.00%
Milling Wheat Oct 2017 259.00 -3.00 -1.15%
Milling Wheat Dec 2017 262.00 -3.00 -1.13%
Durum Wheat Jul 2017 278.00 unch 0.00%
Durum Wheat Oct 2017 266.00 unch 0.00%
Durum Wheat Dec 2017 270.00 unch 0.00%
Barley Jul 2017 138.00 unch 0.00%
Barley Oct 2017 140.00 unch 0.00%
Barley Dec 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 Jul 2017 934.75 +3.00 +0.32%
Soybeans Aug 2017 938.75 +3.50 +0.37%
Soybeans Sep 2017 940.00 +3.75 +0.40%
Soybeans Nov 2017 944.00 +5.00 +0.53%
Soybeans Jan 2018 951.25 +4.75 +0.50%
Soybeans Mar 2018 956.75 +4.75 +0.50%
Soybean Meal Jul 2017 300.60 -1.20 -0.40%
Soybean Meal Aug 2017 302.40 -1.20 -0.40%
Soybean Meal Sep 2017 304.10 -1.10 -0.36%
Soybean Oil Jul 2017 32.74 +0.65 +2.03%
Soybean Oil Aug 2017 32.87 +0.66 +2.05%
Soybean Oil Sep 2017 32.98 +0.65 +2.01%
Corn Jul 2017 379.50 +2.50 +0.66%
Corn Sep 2017 387.50 +2.50 +0.65%
Corn Dec 2017 397.75 +2.25 +0.57%
Corn Mar 2018 406.75 +2.00 +0.49%
Corn May 2018 412.25 +1.75 +0.43%
Oats Jul 2017 261.25 +5.75 +2.25%
Oats Sep 2017 253.25 +7.50 +3.05%
Oats Dec 2017 245.50 +2.75 +1.13%
Oats Mar 2018 243.75 +4.00 +1.67%
Oats May 2018 244.25 +4.00 +1.66%
Wheat Jul 2017 453.75 +10.75 +2.43%
Wheat Sep 2017 469.00 +11.75 +2.57%
Wheat Dec 2017 490.50 +11.50 +2.40%
Wheat Mar 2018 507.25 +10.50 +2.11%
Wheat May 2018 519.50 +10.50 +2.06%
MINNEAPOLIS
Spring Wheat Jul 2017 632.50 +5.00 +0.80%
Spring Wheat Sep 2017 639.50 +5.00 +0.79%
Spring Wheat Dec 2017 635.75 +5.50 +0.87%
Spring Wheat Mar 2018 633.25 +4.75 +0.76%
Spring Wheat May 2018 628.75 +6.75 +1.09%
KANSAS
Hard Red Wheat Jul 2017 465.25 +7.75 +1.69%
Hard Red Wheat Sep 2017 483.25 +8.25 +1.74%
Hard Red Wheat Dec 2017 508.50 +9.25 +1.85%
Hard Red Wheat Mar 2018 521.00 +9.25 +1.81%
Hard Red Wheat May 2018 531.25 +8.25 +1.58%
Chicago livestock futures in US¢/pound (rounded to two decimal places)
Live Cattle (P) Jun 2017 122.50 -2.00 -1.61%
Live Cattle (P) Aug 2017 117.50 -0.38 -0.32%
Live Cattle (P) Oct 2017 114.70 -0.10 -0.09%
Feeder Cattle (P) Aug 2017 147.08 +0.96 +0.66%
Feeder Cattle (P) Sep 2017 146.40 +0.70 +0.48%
Feeder Cattle (P) Oct 2017 144.85 +0.75 +0.52%
Lean Hogs (P) Jul 2017 82.05 -0.53 -0.64%
Lean Hogs (P) Aug 2017 78.92 -1.48 -1.84%
Lean Hogs (P) Oct 2017 67.20 -1.38 -2.01%
