Dry hot weather in the U.S. winter wheat belt pushed wheat and corn higher Wednesday, but oilseeds fell.
Worries about the Greek debt situation continued to worry market participants and pressured many commodities lower, including crude oil. That hurt soybean oil, which in turn pressured canola.
Corn was also supported by new sales of 900,000 bushels to China. The recent price decline appears to be generating new demand and some analysts expect more old crop soybean sales soon.
July canola closed at $601.00, down $1.60 and above the day’s low.
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Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
November closed at$558.40, down $4.00.
• A large U.S. hard red winter wheat crop is still expected, but the exceptional yields hoped for might not materialize if the dry period continues. There are also worries about dry weather in southern Russia.
• The China National Grain and Oils Information Center believes soybean production there will fall seven percent to 13 million tonnes, after a 10.5 percent fall in 2011, as farmers shift to grow corn due to higher returns.
It sees rapeseed production at 12.8 million tonnes, down about 1.5 percent due mainly to reduced acreage.
• While worries persist about Greece’s problems and how they might affect the wider European economy, the U.S. today posted stronger economic number.Housing starts in April increased 2.6 percent and a separate report, said activity at U.S. mines, factories and utilities rose 1.1 percent, the largest gain since December 2010.
• Livestock market analysts expect April feedlot placements in the U.S. to drop 12 percent from April last year. Last year’s placements were inflated because drought in the southern plains was burning up pasture and cow-calf producers were forced to market their cattle.
USDA releases its May 1 feedlot report on Friday.
• Reuters reported the CME Group is modifying its plan to increase trading to 22 hours from the current 17 hours.
In a compromise with grain companies, the CME will trade for 21 hours, with the daily market close staying at 2 p.m. Chicago time and trade reopening at 5 p.m. The initial 22 hour plan would have had to close at 4 p.m. and reopen at 6 p.m.
The modification does not address another criticism of the change, which is that the exchange will be trading when the U.S. Department of Agriculture releases reports in the morning.
U.S. senator Charles Grassley has suggested that USDA should move the timing of its reports so that they will coincide with the period when the markets are closed in the afternoon.
• October Western Barley fell $6 to $210 per tonne, the the new barley contract rose $1.
Winnipeg (per bushel)
Canola Jul 12 $601.00, down $1.60 -0.27%
Canola Nov 12 $558.40, down $4.00 -0.71%
Canola Jan 13 561.40, down $4.20 -0.74%
Canola Mar 13 564.20, down $4.70 -0.83%
The previous day’s best basis in the par region was $9 over the July contract.
Western Barley Jul 12 $237.00 unchanged
Western Barley Oct 12 $210.00, down $6.00 -2.78%
Milling Wheat Oct 12 $242.00 unchanged
Milling Wheat Dec 12 $247.00 unchanged
Milling Wheat Mar 13 256.00 unchanged
Durum Wheat Oct 12 $275.60 unchanged
Durum Wheat Dec 12 $280.10 unchanged
Durum Wheat Mar 13 286.70 unchanged
Barley Oct 12 $185.00, up $1.00 +0.54%
Barley Dec 12 $190.00, up $1.00 +0.53%
Barley Mar 13 193.00, up $1.00 +0.52%
Chicago (per bushel)
Soybeans Jul 12 $14.22, up 9.0 cents +0.64%
Soybeans Aug 12 $13.9525, up 1.5 +0.11%
Soybeans Nov 12 $13.0225, down 2.75 -0.21%
Corn Jul 12 $6.20, up 22.75 +3.81%
Corn Sep 12 $5.37, up 14.0 +2.68%
Corn Dec 12 $5.2625, up 11.75 +2.28%
Oats Jul 12 $3.375, up 7.25 +2.20%
Oats Sep 12 $3.4175, up 6.5 +1.94%
Oats Dec 12 $3.46, up 4.75 +1.39%
Minneapolis (per bushel)
Spring Wheat Jul 12 $7.60, up 9.5 cents +1.27%
Spring Wheat Sep 12 $7.555, up 10.5 +1.41%
Spring Wheat Dec 12 $7.61, up 6.75 +0.89%
Spring Wheat Mar 13 $7.6725, up 6.75 +0.89%
Nearby light crude oil in New York fell $1.17 to $92.81 per barrel. A weekly read of U.S. oil stocks showed crude rose more than expected and stands at the highest level since 1990 but stocks of refined products fell more than expected indicating slowly reviving economic activity.
The Bank of Canada’s noon hour rate for the loonie remained below par at 98.99 cents US, down from 99.71 the previous trading day.
The U.S. dollar was $1.0102 Cdn.
In an early tally:
The Toronto Stock Exchange’s S&P/TSX composite index fell 16.97 points, or 0.15 percent, to 11,326.08.
The Dow Jones industrial average dropped 32.62 points, or 0.26 percent, at 12,599.38.
The Standard & Poor’s 500 Index was down 5.83 points, or 0.44 percent, at 1,324.83.
The Nasdaq Composite Index fell 19.72 points, or 0.68 percent, at 2,874.04.
