Crop futures down sharply as favourable weather blankets Midwest, Prairies

Crop markets were hammered lower on Tuesday as crops continue to enjoy mostly favourable weather.

New crop November soybeans fell 5.3 percent, while November canola dropped 2.13 percent, with the worst effects of the U.S. market decline offset by the falling loonie.

The loonie was down US0.63 cent.

Chicago corn was down about 2.5 percent on the good Midwest weather.

Minneapolis spring wheat rose more than one percent on short covering and weekly U.S. export numbers that topped expectations.

But gains were kept in check by the on-going winter wheat harvest in the U.S. Wheat prices generally are the lowest in 10 years and this week the International Grains Council raised its wheat production forecast by seven million tonnes to 729 million.

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As winter approaches, the dry conditions and drought across much of the Canadian Prairies and the United States Plains will likely persist, said Drew Lerner, meteorologist with World Weather Inc. in Overland Park, Kan.

It expects global wheat stocks will rise by nine million tonnes by the end of 2016-17. Wet weather at harvest in some countries is lowering quality. More wheat than usual will be in the feed category this year, competing with corn in the feed market.

Soybeans also were weighed down by a disappointing weekly U.S. export total and technical weakness.

The most actively traded Chicago November soybean contract fell through key technical support at its 20-day, 30-day and 40-day moving averages. Consolidation was noted at the 40-day moving average, a level the contract has not closed below in four months.

Commodities in general were out of favour today, with U.S. crude oil down about five percent. Reports from China indicate it might be more modest in stimulative policies than had been expected.

Also, concerns about the effect on the economies of Britain and the European Union of Britain’s decision to leave the EU weighed down markets.

Rain on the holiday weekend covered good parts of Kansas, Missouri and southern Illinois. More rain is expected this week, with almost the whole Midwest getting some rain.

Temperatures are rising into the low 30s C in the Midwest but that is not expected to cause much stress, given that rain is also in the outlook.

Deferred soybean contracts are also under pressure from reports that Brazilian farmers are expected to seed a record area to the oilseed.

In Western Canada, temperatures are not hot and rain is expected, keeping growing conditions near ideal.

In early tallies:

Light crude oil nearby futures in New York were down $2.39 to US$46.60 per barrel.

The Canadian dollar at noon was US77.23 cents, down from 77.86 cents the previous trading day. The U.S. dollar at noon was C$1.2949.

The TSX composite was down 41.32 points or 0.29 percent at 14,217

The Dow Jones industrial average was down 109.92 points, or 0.61 percent, to 17,839.45, the S&P 500 had lost 14.47 points, or 0.69 percent, to 2,088.48 and the Nasdaq Composite fell 39.67 points, or 0.82 percent, to 4,822.90.

(NOTE – AN EARLIER VERSION OF THIS STORY HAD INCORRECT DATA FOR ICE CANADA MILLING WHEAT, DURUM WHEAT AND BARLEY)

Winnipeg ICE Futures Canada dollars per tonne

Canola Jul 2016 482.60 -4.80 -0.98%

Canola Nov 2016 483.10 -10.50 -2.13%

Canola Jan 2017 489.90 -11.40 -2.27%

Canola Mar 2017 495.30 -11.50 -2.27%

Canola May 2017 499.10 -11.70 -2.29%

Milling Wheat Jul 16 218.00s unch unch

Milling Wheat Oct 16 214.00s unch unch

Milling Wheat Dec 16 218.00s unch unch

Durum Wheat Jul 16 288.00s -2.00 -0.69%

Durum Wheat Oct 16 283.00s -3.00 -1.05%

Durum Wheat Dec 16 285.00s -3.00 -1.04%

Barley Jul 16 166.00s -5.50 -3.21%

Barley Oct 16 166.00s -5.50 -3.21%

Barley Dec 16 166.00s -5.50 -3.21%

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

Chicago

Soybeans Jul 2016 1117.00 -52.25 -4.47%

Soybeans Aug 2016 1110.00 -53.50 -4.60%

Soybeans Sep 2016 1091.50 -57.75 -5.03%

Soybeans Nov 2016 1077.25 -60.00 -5.28%

Soybeans Jan 2017 1074.50 -58.75 -5.18%

Soybeans Mar 2017 1044.50 -53.00 -4.83%

Soybean Meal Jul 2016 385.40 -19.40 -4.79%

Soybean Meal Aug 2016 384.20 -20.50 -5.07%

Soybean Meal Sep 2016 381.00 -20.10 -5.01%

Soybean Oil Jul 2016 30.82 -0.17 -0.55%

Soybean Oil Aug 2016 30.95 -0.19 -0.61%

Soybean Oil Sep 2016 31.05 -0.24 -0.77%

Corn Jul 2016 344.00 -9.50 -2.69%

Corn Sep 2016 350.75 -9.50 -2.64%

Corn Dec 2016 358.00 -9.25 -2.52%

Corn Mar 2017 367.50 -8.50 -2.26%

Corn May 2017 373.00 -8.50 -2.23%

Oats Jul 2016 216.00 +10.50 +5.11%

Oats Sep 2016 190.00 -2.75 -1.43%

Oats Dec 2016 191.50 -3.50 -1.79%

Oats Mar 2017 204.25 -3.75 -1.80%

Oats May 2017 208.75 -1.00 -0.48%

Wheat Jul 2016 419.50 +3.50 +0.84%

Wheat Sep 2016 433.50 +4.25 +0.99%

Wheat Dec 2016 453.50 +3.75 +0.83%

Wheat Mar 2017 471.00 +2.50 +0.53%

Wheat May 2017 483.00 +3.50 +0.73%

Minneapolis

Spring Wheat Jul 2016 503.75 +14.50 +2.96%

Spring Wheat Sep 2016 508.25 +9.00 +1.80%

Spring Wheat Dec 2016 523.25 +8.00 +1.55%

Spring Wheat Mar 2017 538.25 +8.25 +1.56%

Spring Wheat May 2017 548.00 +8.00 +1.48%

Kansas City

Hard Red Wheat Jul 2016 402.00 +7.00 +1.77%

Hard Red Wheat Sep 2016 416.50 +6.00 +1.46%

Hard Red Wheat Dec 2016 441.00 +5.50 +1.26%

Hard Red Wheat Mar 2017 457.75 +5.75 +1.27%

Hard Red Wheat May 2017 468.50 +4.00 +0.86%

Chicago livestock futures in US¢/pound

Live Cattle (P) Aug 2016 113.65 +0.67 +0.59%

Live Cattle (P) Oct 2016 114.00 +0.88 +0.78%

Live Cattle (P) Dec 2016 114.68 +1.10 +0.97%

Feeder Cattle (P) Aug 2016 144.08 +1.83 +1.29%

Feeder Cattle (P) Sep 2016 143.35 +1.45 +1.02%

Feeder Cattle (P) Oct 2016 142.40 +1.80 +1.28%

Lean Hogs (P) Jul 2016 82.05 -0.55 -0.67%

Lean Hogs (P) Aug 2016 83.25 -0.63 -0.75%

Lean Hogs (P) Oct 2016 72.15 +0.03 +0.04%

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