The stronger loonie and expectations of welcome rain in the southern Prairies weighed down most canola futures on Monday.
Spring wheat, corn and soybeans also fell due to the rain forecast for much of the Northern plains and Midwest.
But overnight and early Tuesday trade in wheat could be supported by a sharp drop in the condition of the U.S. spring wheat crop. Early in overnight trade July spring wheat is up more than 18 cents.
July canola managed to edge higher, supported by tight old crop supplies.
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Alberta Crop Report: Rains in the south, dryness in the north
Rain fell onto the southern half of Alberta last week, while hot and dry conditions persisted in the northern half, according to the province’s crop report released on July 18.
U.S. SPRING WHEAT HAMMERED BY WEATHER
After the markets closed, the USDA issued its weekly crop condition report.
For spring wheat, the rating took a beating after a dry, hot week with only 45 percent rated good to excellent, down from 55 percent the week before. Last year at the same time the condition was 79 percent.
The rating was much lower than the trade’s expectation of 53 percent good to excellent.
The severe drop could support the price in Tuesday trade, but the rain forecast will provide offsetting downward pressure.
The report said the corn good to excellent rating was 67 percent, down from 68 percent the week before and in line with the trade’s expectation. Last year at the same time it was 75 percent.
Soybean seeding in the U.S. is now 92 percent complete.
In the first condition rating of the year, the USDA said the good to excellent rating for soybeans was 66 percent, down from 74 percent last year at the same time. The trade expected the rating to be 70 percent good to excellent.
For winter wheat, 17 percent is now harvested, compared to the five year average of 15 percent.
LOONIE RISES
THE Canadian dollar rose as Bank of Canada senior deputy governor Carolyn Wilkins said impressivee first quarter growth will cause the bank to review whether the current low interest rates are still needed..
The statements were considered more upbeat than in the recent past and led to speculation that interest rate hikes could be coming earlier than expected.
WEATHER
Much of the Prairies should get at least some rain over the next three days. The eastern half of Saskatchewan and Manitoba should get close to an inch. Significant accumulations are also forecast for southern Alberta and southwestern Saskatchewan. Lesser amounts are expected in central and northern Alberta although they got rain over the past seven days.
Most of North Dakota is also expected to get about an inch and part of South Dakota too.
As the week progresses much of the Midwest gets rain coverage as well, according to the forecast.
Cattle futures were sharply lower.
Click here to read more about today’s livestock trade.
OUTSIDE MARKETS
Light crude oil nearby futures in New York rose 25 cents to US$46.08 per barrel.
The Canadian dollar closed at US74.54 cents, up from 74.33 cents the previous trading day. The U.S. dollar was C$1.315.
The Toronto Stock Exchange’s S&P/TSX composite index closed down 89.41 points, or 0.58 percent, at 15,383.80.
The Dow Jones Industrial Average fell 36.3 points, or 0.17 percent, to 21,235.67, the S&P 500 lost 2.38 points, or 0.10 percent, to 2,429.39 and the Nasdaq Composite dropped 32.45 points, or 0.52 percent, to 6,175.47.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2017 514.80 +0.20 +0.04%
Canola Nov 2017 492.20 -2.70 -0.55%
Canola Jan 2018 498.00 -2.70 -0.54%
Canola Mar 2018 503.30 -2.80 -0.55%
Canola May 2018 Â 505.50 unch 0.00%
Milling Wheat Jul 2017 260.00 -1.00 -0.38%
Milling Wheat Oct 2017 256.00 -1.00 -0.39%
Milling Wheat Dec 2017 259.00 -1.00 -0.38%
Durum Wheat Jul 2017 279.00 unch 0.00%
Durum Wheat Oct 2017 269.00 unch 0.00%
Durum Wheat Dec 2017 269.00 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 931.25 -10.50 -1.11%
Soybeans Aug 2017 935.00 -11.00 -1.16%
Soybeans Sep 2017 935.50 -10.75 -1.14%
Soybeans Nov 2017 938.25 -10.50 -1.11%
Soybeans Jan 2018 945.75 -10.00 -1.05%
Soybeans Mar 2018 950.50 -9.00 -0.94%
Soybean Meal Jul 2017 301.80 -4.00 -1.31%
Soybean Meal Aug 2017 303.60 -3.70 -1.20%
Soybean Meal Sep 2017 305.00 -3.60 -1.17%
Soybean Oil Jul 2017 31.94 -0.35 -1.08%
Soybean Oil Aug 2017 32.07 -0.32 -0.99%
Soybean Oil Sep 2017 32.18 -0.33 -1.02%
Corn Jul 2017 377.25 -10.75 -2.77%
Corn Sep 2017 385.00 -10.50 -2.65%
Corn Dec 2017 395.50 -10.25 -2.53%
Corn Mar 2018 404.75 -9.75 -2.35%
Corn May 2018 410.25 -9.25 -2.21%
Oats Jul 2017 249.75 -2.50 -0.99%
Oats Sep 2017 241.25 -1.75 -0.72%
Oats Dec 2017 237.25 -1.75 -0.73%
Oats Mar 2018 232.75 -2.75 -1.17%
Oats May 2018 233.25 -0.75 -0.32%
Wheat Jul 2017 434.00 -12.00 -2.69%
Wheat Sep 2017 448.50 -11.75 -2.55%
Wheat Dec 2017 470.75 -11.00 -2.28%
Wheat Mar 2018 488.25 -9.50 -1.91%
Wheat May 2018 500.75 -9.25 -1.81%
Spring Wheat Jul 2017 600.50 -8.00 -1.31%
Spring Wheat Sep 2017 606.25 -6.75 -1.10%
Spring Wheat Dec 2017 605.25 -4.00 -0.66%
Spring Wheat Mar 2018 607.00 -4.25 -0.70%
Spring Wheat May 2018 606.75 -3.50 -0.57%
Hard Red Wheat Jul 2017 442.75 -8.75 -1.94%
Hard Red Wheat Sep 2017 460.50 -9.25 -1.97%
Hard Red Wheat Dec 2017 486.00 -8.50 -1.72%
Hard Red Wheat Mar 2018 499.75 -7.50 -1.48%
Hard Red Wheat May 2018 511.25 -7.75 -1.49%
Chicago livestock futures in US¢/pound (rounded to two decimal places)
Live Cattle (P) Jun 2017 128.35 -3.00 -2.28%
Live Cattle (P) Aug 2017 121.55 -2.63 -2.12%
Live Cattle (P) Oct 2017 118.20 -1.98 -1.65%
Feeder Cattle (P) Aug 2017 151.55 -2.95 -1.91%
Feeder Cattle (P) Sep 2017 151.23 -2.77 -1.80%
Feeder Cattle (P) Oct 2017 149.80 -2.88 -1.89%
Lean Hogs (P) Jun 2017 81.98 -0.52 -0.63%
Lean Hogs (P) Jul 2017 80.70 -2.05 -2.48%
Lean Hogs (P) Aug 2017 80.00 -2.12 -2.58%
