The squeeze on old crop soybeans and soy meal that was holding oilseed prices up is unwinding and canola futures were caught in the downdraft on Wednesday.
The big soy meal run up on Monday caused U.S. farmers to deliver the last loads of soybeans that they had been hanging on to.
That new supply relieved the urgent shortage and today old crop soybeans and soy meal were down the daily limit.
That negative pressure added to the pressure from the generally good growing weather in the U.S. Midwest and the Canadian Prairies.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
November canola fell $7.80 to $505.20 per tonne. Many Western Canadian farmers would probably like the weather to be a little warmer to to keep crops maturing.
The big drop in soybeans spilled over into corn and wheat, which were also pressured by the favourable weather.
Wheat was also pressured by reports from an industry tour of North Dakota wheat and durum fields. The tour is forecasting yields that are down from last year but higher than the five-year average.
Some of the North Dakota crop is well behind normal development due to late planting.
On the other hand, Russia’s National Grain Producer’s Union said the wheat crop there could be 45 to 48 million tonnes. That is down from the government’s forecast of not less than 50 million tonnes. Another farmer lobby group put the wheat crop at 53-54 million tonnes.
Russian farmers are about half way through the winter wheat harvest.
Also lending a little support was news from Brazil that frost might have damaged some of its wheat crop. If so, it would have to import more, perhaps from North America if Argentina continues to limit its wheat exports.
Germany has generally had a good growing season but high temperatures this week are pushing maturity of the wheat crop and that could hurt protein levels, Reuters reported.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2013 505.20 -7.80 -1.52%
Canola Jan 2014 509.00 -8.50 -1.64%
Canola Mar 2014 513.20 -9.00 -1.72%
Canola May 2014 514.90 -9.90 -1.89%
Canola Jul 2014 517.80 -10.00 -1.89%
Milling Wheat Oct 2013 259.00 unch 0.00%
Milling Wheat Dec 2013 262.00 -1.00 -0.38%
Milling Wheat Mar 2014 269.00 -1.00 -0.37%
Durum Wheat Oct 2013 296.00 unch 0.00%
Durum Wheat Dec 2013 301.00 unch 0.00%
Durum Wheat Mar 2014 311.00 unch 0.00%
Barley Oct 2013 194.00 unch 0.00%
Barley Dec 2013 199.00 unch 0.00%
Barley Mar 2014 199.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Aug 2013 1392.5 -70 -4.79%
Soybeans Sep 2013 1301.75 -22.25 -1.68%
Soybeans Nov 2013 1256.75 -3.5 -0.28%
Soybeans Jan 2014 1261 -4 -0.32%
Soybeans Mar 2014 1259.75 -4.5 -0.36%
Soybeans May 2014 1254.5 -5 -0.40%
Soybean Meal Aug 2013 467.8 -20 -4.10%
Soybean Meal Sep 2013 417.7 -19.9 -4.55%
Soybean Meal Oct 2013 385.2 -2.1 -0.54%
Soybean Oil Aug 2013 44.26 -0.52 -1.16%
Soybean Oil Sep 2013 44.21 -0.54 -1.21%
Soybean Oil Oct 2013 44.14 -0.55 -1.23%
Corn Sep 2013 508.25 -14.25 -2.73%
Corn Dec 2013 480.25 -5.25 -1.08%
Corn Mar 2014 492.75 -5.25 -1.05%
Corn May 2014 500.75 -5.25 -1.04%
Corn Jul 2014 507 -5 -0.98%
Oats Sep 2013 345.75 -7 -1.98%
Oats Dec 2013 335 -2 -0.59%
Oats Mar 2014 340.75 -2 -0.58%
Oats May 2014 341 -2 -0.58%
Oats Jul 2014 350.5 -2 -0.57%
Wheat Sep 2013 653.25 -0.5 -0.08%
Wheat Dec 2013 664 -1.5 -0.23%
Wheat Mar 2014 673.75 -2.5 -0.37%
Wheat May 2014 679.5 -3.25 -0.48%
Wheat Jul 2014 677.25 -3.5 -0.51%
Minneapolis
Spring Wheat Sep 2013 743.5 -0.5 -0.07%
Spring Wheat Dec 2013 753.25 -1.75 -0.23%
Spring Wheat Mar 2014 766 -1.5 -0.20%
Spring Wheat May 2014 773.5 -2 -0.26%
Spring Wheat Jul 2014 780 -2.25 -0.29%
Kansas City
KCBT Red Wheat Sep 2013 697.25 -1.75 -0.25%
KCBT Red Wheat Dec 2013 706.25 -4 -0.56%
KCBT Red Wheat Mar 2014 715 -5 -0.69%
KCBT Red Wheat May 2014 718 -5.25 -0.73%
KCBT Red Wheat Jul 2014 710.25 -5 -0.70%
Light crude oil nearby futures in New York dropped $1.84 at $105.39 US per barrel.
The Canadian dollar at noon was 97.11 cents US, up from 97.05 cents the previous trading day. The U.S. dollar at noon was $1.0298 Cdn.
Earning reports from Caterpillar and AT&T disappointed analysts but Apple quarterly earnings topped expectations.
American and European factory activity topped expectations but a survey of China’s manufacturing sector in July slowed to an 11 month low. The slow down in China pressured crude oil lower.
Disappointing results from Canadian Pacific Railway and Cenovus Energy and lower gold prices weighed on the TSX composite. Canadian Pacific more than doubled its second quarter profit to $1.43 per diluted share compared to last year at the same time, but analysts had expected $1.49 per share.
In unofficial tallies —
The Toronto Stock Exchange’s S&P/TSX composite index fell 73.08 points, or 0.57 percent, to close at 12,672.30.
The Dow Jones industrial average slipped 25.50 points, or 0.16 percent, to end at 15,542.24.
The Standard & Poor’s 500 Index dipped 6.45 points, or 0.38 percent, to finish at 1,685.94.
The Nasdaq Composite Index edged up 0.33 of a point, or 0.01 percent, to close at 3,579.60.
