A strong U.S. dollar helped push down crop futures Monday, as volatility from the the surprising victory of Donald Trump in the U.S. presidential election continued to roil markets.
“There’s a lot of stuff happening,” said Errol Anderson of ProMarket.
Bond yields have soared as investors sold off bonds, anticipating inflationary pressure from Trump’s promise to increase U.S. infrastructure spending.
That has hurt dividend-paying stocks, which have been an alternative to bonds’ low yields.
“It’s the change from deflationary to inflationary,” said Anderson.
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General volatility, as the world’s investors have tried to sort out what a Trump government will mean for the world, has knocked many asset classes up and down, but also driven people towards the assumed safety of the U.S. dollar.
Crops have seen a mix of impacts, with not all easy to assess.
U.S. crop futures are priced in U.S. dollars, so anything that increases the value of the greenback increases the relative price of those futures in foreign buyers’ eyes.
Most canola contracts fell eight to 10 cents per bushel, even though canola is priced in Canadian dollars.
The loonie was relatively strong Monday, slipping only slightly, after weakening last week.
Good harvesting conditions in Western Canada are taking some of the fear out of the market that crops won’t be harvested by the time the snow stays.
Canola also suffered a delayed reaction from Friday’s fall in U.S. soybean prices, which couldn’t be reflected in the canola market because of the Remembrance Day closure.
Palm oil’s weakness is pressuring all vegetable oil values.
Grain futures fell in general on Monday, with only soybean meal and oats rising in value.
The unusually warm harvest weather on the Prairies comes to an end on Wednesday with a return to seasonal temperatures. There are several days after Nov. 20 with precipitation possibilities above 70 percent in central Saskatchewan.
Light crude oil nearby futures in New York were down nine cents to US$43.32 per barrel.
The Canadian dollar at noon was US73.63 cents, down from 74.21 cents the previous trading day. The U.S. dollar at noon was C$1.3582.
The TSX composite closed up 43.04 points of 0.3 perent at 14,598.45.
The Dow Jones industrial average closed up 21.03 points, or 0.11 percent, to 18,868.69, the S&P 500 lost 0.25 points, or 0.01 percent, to 2,164.2 and the Nasdaq Composite dropped 18.72 points, or 0.36 percent, to 5,218.40.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jan 17 509.70 -4.20 -0.82%
Canola Mar 17 516.20 -4.40 -0.85%
Canola May 17 519.20 -4.50 -0.86%
Canola Jul 17 520.00 -4.00 -0.76%
Canola Nov 17 501.40 -3.80 -0.75%
Milling Wheat Dec 16 227.00 +1.00 +0.44%
Milling Wheat Mar 17 232.00 +3.00 +1.31%
Milling Wheat May 17 235.00 +2.00 +0.86%
Durum Wheat Dec 16 327.00 unch unch
Durum Wheat Mar 17 334.00 +1.00 +0.30%
Durum Wheat May 17 337.00 unch unch
Barley Dec 16 132.50 unch unch
Barley Mar 17 134.50 unch unch
Barley May 17 135.50 unch inch
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Nov 2016 971.00 -8.50 -0.87%
Soybeans Jan 2017 984.25 -3.50 -0.35%
Soybeans Mar 2017 992.50 -3.50 -0.35%
Soybeans May 2017 1000.00 -3.50 -0.35%
Soybeans Jul 2017 1005.50 -2.75 -0.27%
Soybeans Aug 2017 1004.75 +0.75 +0.07%
Soybean Meal Dec 2016 309.90 +1.30 +0.42%
Soybean Meal Jan 2017 312.10 +1.00 +0.32%
Soybean Meal Mar 2017 313.80 +0.90 +0.29%
Soybean Oil Dec 2016 33.95 -0.49 -1.42%
Soybean Oil Jan 2017 34.18 -0.49 -1.41%
Soybean Oil Mar 2017 34.40 -0.49 -1.40%
Corn Dec 2016 337.25 -3.50 -1.03%
Corn Mar 2017 345.25 -4.00 -1.15%
Corn May 2017 352.50 -4.25 -1.19%
Corn Jul 2017 359.75 -4.25 -1.17%
Corn Sep 2017 366.50 -4.25 -1.15%
Oats Dec 2016 227.75 +2.75 +1.22%
Oats Mar 2017 225.50 +2.00 +0.89%
Oats May 2017 227.25 -0.25 -0.11%
Oats Jul 2017 230.50 +3.25 +1.43%
Oats Sep 2017 225.75 +2.00 +0.89%
Chicago
Wheat Dec 2016 394.00 -9.25 -2.29%
Wheat Mar 2017 412.50 -9.75 -2.31%
Wheat May 2017 426.25 -10.25 -2.35%
Wheat Jul 2017 441.50 -10.25 -2.27%
Wheat Sep 2017 458.00 -8.50 -1.82%
Minneapolis
Spring Wheat Dec 2016 512.00 -8.25 -1.59%
Spring Wheat Mar 2017 515.75 -8.50 -1.62%
Spring Wheat May 2017 522.25 -9.00 -1.69%
Spring Wheat Jul 2017 529.50 -9.25 -1.72%
Spring Wheat Sep 2017 537.00 -9.00 -1.65%
Kansas
Hard Red Wheat Dec 2016 402.75 -7.75 -1.89%
Hard Red Wheat Mar 2017 420.50 -7.00 -1.64%
Hard Red Wheat May 2017 432.25 -6.75 -1.54%
Hard Red Wheat Jul 2017 443.75 -6.75 -1.50%
Hard Red Wheat Sep 2017 458.50 -6.00 -1.29%
Chicago livestock futures in US¢/pound (rounded to two decimal places)
Live Cattle (P) Dec 2016 105.58 -0.12 -0.11%
Live Cattle (P) Feb 2017 106.52 +0.14 +0.13%
Live Cattle (P) Apr 2017 106.22 +0.07 +0.07%
Feeder Cattle (P) Nov 2016 126.03 +0.25 +0.20%
Feeder Cattle (P) Jan 2017 122.32 +1.27 +1.05%
Feeder Cattle (P) Mar 2017 118.45 +0.95 +0.81%
Lean Hogs (P) Dec 2016 46.90 -0.45 -0.95%
Lean Hogs (P) Feb 2017 53.60 -0.92 -1.69%
Lean Hogs (P) Apr 2017 60.90 -1.05 -1.69%
