D’Arce McMillan
Markets editor
Twitter @darcemcmillan
Harvest progress, good North American weather and expectations of a huge U.S. crop continued to weigh down crop prices, with canola dropping $3.80 a tonne to $396.30.
Anecdotal reports from the early harvested crops in the heart of the U.S. Midwest are much better than expected. Even in Western Canada there are reports that canola is yielding better than expected in some zones.
Saskatchewan Agriculture today said that as of Sept. 22, 43 percent of the crop had been combined and another 37 percent is swathed or ready to straight-cut. The five-year average (2009-13) for this time of year is 58 per cent combined and 25 per cent swathed or ready to straight-cut.
Last year at this time, 71 percent was combined.
The report had this to say about yields:
“While overall yields are reported to be about average, they vary from region to region depending on field moisture and disease received throughout the year. Average hard red spring wheat yields are reported as 39 bushels per acre, durum 37 bushels per acre, barley 58 bushels per acre, canola 32 bushels per acre and field peas 32 bushels per acre.”
The strong U.S. dollar, at a four-year high against a basket of world currencies, weighed on crop prices.
Indeed, almost all equity and commodity markets were jittery today on the dollar strength, mixed economic reports and worries that stock markets might be due for a correction after a sustained rise this year.
Canola fell almost one percent, slipping back below $400 per tonne, even as soy oil was unchanged and palm oil rose on slower monthly production and good exports so far this month.
Planting of another expected record soybean crop in Brazil has begun. Planting in Argentina is a few weeks away.
The USDA released weekly export sales information.
It reported sales of U.S. soybeans in the latest week at 2.565 million tonnes, at the high end of trade expectations.
U.S. wheat sales were 396,200 tonnes, toward the low end of trade expectations.
Weekly corn sales were 836,400 tonnes within the range of analyst expectations.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2014 396.30 -3.80 -0.95%
Canola Jan 2015 403.40 -3.70 -0.91%
Canola Mar 2015 410.70 -3.60 -0.87%
Canola May 2015 417.80 -3.50 -0.83%
Canola Jul 2015 424.30 -3.20 -0.75%
Milling Wheat Oct 2014 189.00 +2.00 +1.07%
Milling Wheat Dec 2014 194.00 +3.00 +1.57%
Milling Wheat Mar 2015 202.00 +2.00 +1.00%
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 123.50 unch 0.00%
Barley Dec 2014 125.50 unch 0.00%
Barley Mar 2015 126.50 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 2014 922.75 -14 -1.49%
Soybeans Jan 2015 931.5 -13.75 -1.45%
Soybeans Mar 2015 939.5 -13 -1.36%
Soybeans May 2015 947.75 -12.25 -1.28%
Soybeans Jul 2015 953.75 -12 -1.24%
Soybeans Aug 2015 956.75 -11.25 -1.16%
Soybean Meal Oct 2014 312.4 -4 -1.26%
Soybean Meal Dec 2014 303.9 -4.1 -1.33%
Soybean Meal Jan 2015 301.8 -4.4 -1.44%
Soybean Oil Oct 2014 32.62 unch 0.00%
Soybean Oil Dec 2014 32.7 -0.02 -0.06%
Soybean Oil Jan 2015 32.98 -0.01 -0.03%
Corn Dec 2014 326 -3.5 -1.06%
Corn Mar 2015 339 -3.25 -0.95%
Corn May 2015 347.5 -3.25 -0.93%
Corn Jul 2015 354.75 -3.25 -0.91%
Corn Sep 2015 362.25 -3.25 -0.89%
Oats Dec 2014 331.25 -9.25 -2.72%
Oats Mar 2015 317.25 -7.75 -2.38%
Oats May 2015 311.75 -7.5 -2.35%
Oats Jul 2015 309.5 -4.5 -1.43%
Oats Sep 2015 313.75 -4.25 -1.34%
Wheat Dec 2014 474 -6.25 -1.30%
Wheat Mar 2015 487.75 -4.5 -0.91%
Wheat May 2015 497 -4 -0.80%
Wheat Jul 2015 503.5 -4.5 -0.89%
Wheat Sep 2015 515 -4.75 -0.91%
Minneapolis
Spring Wheat Dec 2014 536.25 -1.75 -0.33%
Spring Wheat Mar 2015 551.75 -0.5 -0.09%
Spring Wheat May 2015 562.5 +0.25 +0.04%
Spring Wheat Jul 2015 573.5 +0.25 +0.04%
Spring Wheat Sep 2015 584.75 +0.25 +0.04%
Kansas City
Hard Red Wheat Dec 2014 564.25 unch 0.00%
Hard Red Wheat Mar 2015 568 +0.5 +0.09%
Hard Red Wheat May 2015 570.5 +1.25 +0.22%
Hard Red Wheat Jul 2015 563.25 +1.25 +0.22%
Hard Red Wheat Sep 2015 575.25 +2 +0.35%
Light crude oil nearby futures in New York dropped 27 cents at $92.53 US per barrel.
The Canadian dollar at noon was 90.04 cents US, down from 90.17 cents the previous trading day. The U.S. dollar at noon was $1.1106 Cdn.
In early unofficial tallies —
The TSX composite fell 226.96 points of 1.5 percent to 14,893.57.
The Dow Jones industrial average fell 257.87 points, or 1.5 percent, to 16,952.19, the S&P 500 lost 31.93 points, or 1.6 percent, to 1,966.37 and the Nasdaq Composite dropped 88.47 points, or 1.94 percent, to 4,466.75.
