Falling soybeans drag canola lower

Reading Time: 3 minutes

Published: September 30, 2014

By D’Arce McMillan

Markets editor

Twitter @darcemcmillan

Oilseed futures on Tuesday gave back Monday’s gains and grains were also lower on harvest pressure and a USDA report that was slightly negative for corn and wheat prices.

Light showers today in various parts of Western Canada are likely interfering with combining. The rain is expected to become steadier later today and into Wednesday with the greatest accumulation in central and eastern Saskatchewan, running into western Manitoba.

Rain is expected to be heavier in a large part of the U.S. Midwest, but that has no positive effect on crop prices.

Read Also

Photo: JHVEPhoto/Getty Images Plus

U.S. grains: Corn, soybeans extend losses as Midwest weather looks crop-friendly

Chicago Board of Trade corn futures extended session losses on Tuesday, weighed down by forecasts for crop-friendly rain in U.S. grain belts this week.

Statistics Canada releases its latest estimate of the size of Canada’s crops on Friday. Reuters today reported that, on average, the trade expects a wheat crop of 28 million tonnes and canola at 14.6 million.

The previous Statistics Canada survey this summer put the all wheat crop at 27.7 million tonnes and canola at 13.9 million tonnes.

Today’s USDA stocks report showed domestic soybean stocks as of Sept. 1 were scraping the bottom of the barrel at 92 million bushels, the lowest since 1973 and 34 million bu. less than the average of analysts’ forecasts.

However, with a record large harvest now coming in, the report provided little support to soybean futures.

The USDA reports were slightly bearish for wheat. Stocks as of Sept. 1 were 1.914 billion bu., slightly above trade expectations. The report indicated less wheat was fed to livestock than expected.

The USDA annual Small Grains Report today pegged the all-wheat crop at 2.035 billion bu., up five million from its previous figure. That was roughly in line with the average trade estimate of 2.037 billion.

The all wheat number was the result of a slight reduction in the winter wheat crop and an increase of the spring wheat crop to 601 million bu., at the high end of what the trade expected.

The stocks report for corn was also a bit bearish, at 1.235 billion bu., up from the average trade estimate of 1.185 billion and well above last year’s 821 million.

Crude oil fell sharply on an oversupply.

 

Winnipeg ICE Futures Canada dollars per tonne

Canola Nov 2014       395.90       -2.10       -0.53%

Canola Jan 2015       402.50       -2.90       -0.72%

Canola Mar 2015       409.50       -3.10       -0.75%

Canola May 2015       416.00       -4.00       -0.95%

Canola Jul 2015       421.90       -4.90       -1.15%

 

Milling Wheat Oct 2014       188.00       -2.00       -1.05%

Milling Wheat Dec 2014       192.00       -2.00       -1.03%

Milling Wheat Mar 2015       201.00       -2.00       -0.99%

 

Durum Wheat Oct 2014       303.20       unch       0.00%

Durum Wheat Dec 2014       309.70       unch       0.00%

Durum Wheat Mar 2015       310.70       unch       0.00%

 

Barley Oct 2014       116.00       -9.00       -7.20%

Barley Dec 2014       118.00       -9.00       -7.09%

Barley Mar 2015       119.00       -9.00       -7.03%

 

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

 

Chicago

Soybeans Nov 2014       913.25       -10.25       -1.11%

Soybeans Jan 2015       921.25       -11       -1.18%

Soybeans Mar 2015       929.75       -10.75       -1.14%

Soybeans May 2015       938       -10.75       -1.13%

Soybeans Jul 2015       944.5       -10.25       -1.07%

Soybeans Aug 2015       947.5       -10       -1.04%

 

Soybean Meal Oct 2014       304.6       -3.5       -1.14%

Soybean Meal Dec 2014       298.9       -5       -1.65%

Soybean Meal Jan 2015       297.4       -4.3       -1.43%

 

Soybean Oil Oct 2014       32.27       -0.52       -1.59%

Soybean Oil Dec 2014       32.37       -0.58       -1.76%

Soybean Oil Jan 2015       32.65       -0.57       -1.72%

 

Corn Dec 2014       320.75       -5       -1.53%

Corn Mar 2015       333.5       -5       -1.48%

Corn May 2015       342       -5       -1.44%

Corn Jul 2015       349.5       -4.5       -1.27%

Corn Sep 2015       356.75       -4.5       -1.25%

 

Oats Dec 2014       335.5       +1.5       +0.45%

Oats Mar 2015       322.5       +1.75       +0.55%

Oats May 2015       316.5       +1.25       +0.40%

Oats Jul 2015       312.25       -0.75       -0.24%

Oats Sep 2015       316.5       -0.5       -0.16%

 

Wheat Dec 2014       477.75       -3.5       -0.73%

Wheat Mar 2015       490.5       -3.5       -0.71%

Wheat May 2015       498.75       -4       -0.80%

Wheat Jul 2015       504.5       -4       -0.79%

Wheat Sep 2015       515.5       -3.25       -0.63%

 

Minneapolis

Spring Wheat Dec 2014       533.5       -5.75       -1.07%

Spring Wheat Mar 2015       548.25       -5.5       -0.99%

Spring Wheat May 2015       559.25       -5.75       -1.02%

Spring Wheat Jul 2015       570.25       -6       -1.04%

Spring Wheat Sep 2015       581       -6       -1.02%

 

Kansas City

Hard Red Wheat Dec 2014       558       -8.5       -1.50%

Hard Red Wheat Mar 2015       561.75       -8.5       -1.49%

Hard Red Wheat May 2015       564.75       -7.75       -1.35%

Hard Red Wheat Jul 2015       559.25       -7.5       -1.32%

Hard Red Wheat Sep 2015       570.75       -7.75       -1.34%

 

Light crude oil nearby futures in New York dropped $3.41 at $91.16 US per barrel on oversupply. A Reuters showed Organization of the Petroleum Exporting Countries output in September at its highest level in nearly two years, led by Libya as well as Saudi Arabia and other Gulf oil-exporting countries.

The Canadian dollar at noon was 89.22 cents US, down from 89.73 cents the previous trading day. The U.S. dollar at noon was $1.1208 Cdn.

Statistics Canada said on Tuesday that real gross domestic product in July was unchanged from June. Market analysts had expected a 0.2 percent advance. In the first six months of the year monthly growth had been averaging 0.3 percent.

In unofficial early tallies —

The Toronto Stock Exchange composite fell 16.41 points or 0.11 percent to 14,960.51.

The Dow Jones industrial average fell 28.29 points, or 0.17 percent, to 17,042.93, the S&P 500 lost 5.49 points, or 0.28 percent, to 1,972.31 and the Nasdaq Composite dropped 12.46 points, or 0.28 percent, to 4,493.39.

About the author

D'Arce McMillan

Markets editor, Saskatoon newsroom

Markets at a glance

explore

Stories from our other publications