Crop prices trotted into the weekend with a nice green tone, with slight increases across the board during Friday trading.
It was a week of crop price strength that allowed one analyst to speculate that crops were going past some of the traditional harvest lows.
“It’s not shoot-out-of-a-cannon going crazy, but maybe it signals that the seasonals have put the lows behind us,” said Jon Driedger, an analyst with FarmLink Marketing.
“We’ll have to watch closely to see if there’s any follow-through (next week).”
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The general rise in crop markets occurred as stock markets rallied sharply through most of the trading day, but after crop futures closed most of the equity market gains were given back.
Driedger said there wasn’t any big supply and demand news that explained the price rise, but general optimism seemed to take hold.
That optimism could encourage speculators to get out of short positions, which is what Driedger suspects has been happening.
“The funds have generally been short these grains and maybe it’s kind of an excuse to cover some of these positions,” said Driedger.
Soybean oil had a particularly sharp rise Friday.
Wheat and canola futures often bottom in September, so the low occurring now would not be surprising. Corn and soybeans normally bottom a few weeks later.
The rise of the Brazilian currency overnight also seems to have added bullish momentum to the markets.
“I think it’s more of a money flow kind of thing,” said Driedger.
Canola continued aggressively by crushers, who aren’t profitable right now but perhaps locked in prices previously.
So far, the industry has been using almost 70 percent of its present capacity but crushing about the same amount of canola.
Even cattle futures had a good day Friday after being pummeled earlier in the week.
ed.white@producer.com
Light crude oil nearby futures in New York were up 79 cents to US$45.70 per barrel.
The Canadian dollar at noon was US75.05 cents, up from 74.90 cents the previous trading day. The U.S. dollar at noon was C$1.3325.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2015 476.30 +4.60 +0.98%
Canola Jan 2016 481.50 +4.80 +1.01%
Canola Mar 2016 483.80 +5.40 +1.13%
Canola May 2016 483.70 +5.50 +1.15%
Canola Jul 2016 482.40 +5.40 +1.13%
Milling Wheat Oct 2015 237.00 +3.00 +1.28%
Milling Wheat Dec 2015 241.00 +3.00 +1.26%
Milling Wheat Mar 2016 246.00 +3.00 +1.23%
Durum Wheat Oct 2015 345.00 +15.00 +4.55%
Durum Wheat Dec 2015 345.00 +15.00 +4.55%
Durum Wheat Mar 2016 350.00 +15.00 +4.48%
Barley Oct 2015 184.00 unch 0.00%
Barley Dec 2015 184.00 unch 0.00%
Barley Mar 2016 186.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Nov 2015 889.25 +21.25 +2.45%
Soybeans Jan 2016 893.25 +20.75 +2.38%
Soybeans Mar 2016 897.5 +20.75 +2.37%
Soybeans May 2016 899.5 +20 +2.27%
Soybeans Jul 2016 903.75 +19.5 +2.21%
Soybeans Aug 2016 903 +19.25 +2.18%
Soybean Meal Oct 2015 308.7 +6.3 +2.08%
Soybean Meal Dec 2015 308.2 +6.3 +2.09%
Soybean Meal Jan 2016 306.9 +6 +1.99%
Soybean Oil Oct 2015 27.72 +0.74 +2.74%
Soybean Oil Dec 2015 27.91 +0.73 +2.69%
Soybean Oil Jan 2016 28.21 +0.72 +2.62%
Corn Dec 2015 389 +7.5 +1.97%
Corn Mar 2016 400.25 +7.5 +1.91%
Corn May 2016 407.5 +7.5 +1.88%
Corn Jul 2016 412.75 +7.25 +1.79%
Corn Sep 2016 405 +6.5 +1.63%
Oats Dec 2015 231.25 +5 +2.21%
Oats Mar 2016 233.25 +3 +1.30%
Oats May 2016 237.5 +3 +1.28%
Oats Jul 2016 238.25 +3 +1.28%
Oats Sep 2016 238.25 +3 +1.28%
Wheat Dec 2015 507.75 +10.5 +2.11%
Wheat Mar 2016 515 +10.75 +2.13%
Wheat May 2016 519.5 +10.75 +2.11%
Wheat Jul 2016 522.75 +10.75 +2.10%
Wheat Sep 2016 530.75 +10.5 +2.02%
Minneapolis
Spring Wheat Dec 2015 522.75 +9 +1.75%
Spring Wheat Mar 2016 536.25 +8.75 +1.66%
Spring Wheat May 2016 546.25 +7.5 +1.39%
Spring Wheat Jul 2016 556.25 +7.75 +1.41%
Spring Wheat Sep 2016 566.75 +7.75 +1.39%
Kansas City
Hard Red Wheat Dec 2015 500.25 +10.25 +2.09%
Hard Red Wheat Mar 2016 514.75 +10.25 +2.03%
Hard Red Wheat May 2016 524.75 +10.25 +1.99%
Hard Red Wheat Jul 2016 533.75 +10.25 +1.96%
Hard Red Wheat Sep 2016 547.5 +10.5 +1.96%
