WINNIPEG (Reuters) — ICE Canada canola futures dropped on Tuesday, dragged lower by rains that were favorable to the U.S. soybean crop.
Canola’s losses were more modest than those of soybeans for much of the session due to concerns about low yields in the western Canadian canola crop, but finished with similar declines, a trader said.
November canola lost $7.80 to $494.30 per tonne, touching the contract’s lowest price since July 26. It finished below several key moving averages.
The November-January canola spread traded 425 times.
Chicago Board of Trade November soybeans slipped as rains in the Midwest looked to increase yield potential.
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CBOT corn tumbled to a 10-month low.
Some CBOT wheat and Kansas City wheat futures dropped to life-of-contract lows on technical selling and as a stronger dollar threatened to make U.S. crop supplies more expensive for global buyers.
Corn, soybeans and wheat declined to session lows at midday, with most-active CBOT December corn dropping below its support level from Monday of $3.70 before settling down 7-3/4 cents to $3.68-1/2 per bushel.
CBOT November soybean futures finished 14 cents lower at $9.24-1/4 per bushel, lowest since June 30. CBOT September wheat was off 11-1/2 cents at $4.29-1/2, settling above its earlier lifetime low of $4.28.
Investment funds were relatively heavy sellers of 13,000 corn futures contracts, 10,000 soy contracts and 7,500 wheat contracts, traders said.
“It looks like a national down day,” independent consultant Sid Love said of declines in many agriculture commodities. “With the dollar up, you put pressure on grains right out of the box.”
Prices for U.S. crops had been under pressure from U.S. Department of Agriculture data released late on Monday showing better-than-expected corn crop conditions and following agency data on Thursday predicting a record-large U.S. soybean crop and the third-biggest corn harvest.
Most analysts expected cuts in production estimates due to relatively hot and dry weather during the growing season.
Rains were falling in parts of Nebraska and Iowa and the storm system was forecast to move east, likely increasing yield potential for corn and soybeans and further weighing on prices.
“Weather forecasters have a fairly corn-friendly outlook for the next week or so,” said Tobin Gorey of the Commonwealth Bank of Australia. “And corn crop conditions for last week were a little better, according to the USDA’s survey.”
The National Oilseed Processors Association’s monthly report showed a slightly larger-than-expected U.S. soybean crush in July. However, the data showing stronger domestic demand for soybeans gave little traction to prices.
Light crude oil nearby futures in New York were down four cents US$47.55 per barrel.
In the afternoon, the Canadian dollar was trading around US78.39 cents, down from 78.57 cents the previous trading day. The U.S. dollar was C$1.2757.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 17 494.30s -7.80 -1.55%
Canola Jan 18 499.20s -7.60 -1.50%
Canola Mar 18 502.50s -7.50 -1.47%
Canola May 18 504.80s -6.30 -1.23%
Milling Wheat Oct 17 254.00s -8.00 -3.05%
Milling Wheat Dec 17 257.00s -8.00 -3.02%
Milling Wheat Mar 18 264.00s -7.00 -2.58%
Durum Wheat Oct 17 335.00s unch unch
Durum Wheat Dec 17 336.00s unch unch
Durum Wheat Mar 18 311.00s unch unch
Barley Oct 17 145.00s unch unch
Barley Dec 17 141.00s unch unch
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.
Chicago
Soybeans Sep 17 921-6s -11-0 -1.18%
Soybeans Nov 17 924-2s -14-0 -1.49%
Soybeans Jan 18 932-4s -14-2 -1.51%
Soybeans Mar 18 940-6s -14-4 -1.52%
Soybeans May 18 948-0s -15-0 -1.56%
Soybean Meal Sep 17 295.8s -2.9 -0.97%
Soybean Meal Oct 17 297.3s -2.9 -0.97%
Soybean Oil Sep 17 32.71s -0.71 -2.12%
Soybean Oil Oct 17 32.83s -0.71 -2.12%
Soybean Oil Dec 17 33.04s -0.73 -2.16%
Corn Sep 17 355-2s -7-4 -2.07%
Corn Dec 17 368-4s -7-6 -2.06%
Corn Mar 18 380-2s -8-0 -2.06%
Corn May 18 386-6s -8-0 -2.03%
Corn Jul 18 392-2s -8-2 -2.06%
Oats Sep 17 258-2s -3-2 -1.24%
Oats Mar 18 260-0s -3-6 -1.42%
Oats May 18 263-2s -3-2 -1.22%
Oats Jul 18 264-6s -3-2 -1.21%
Wheat Sep 17 429-4s -11-4 -2.61%
Wheat Dec 17 456-0s -11-6 -2.51%
Wheat Mar 18 477-2s -10-6 -2.20%
Wheat May 18 491-0s -11-6 -2.34%
Wheat Jul 18 501-6s -11-6 -2.29%
Minneapolis
Spring Wheat Sep 17 658-2s -11-6 -1.75%
Spring Wheat Mar 18 671-6s -14-6 -2.15%
Spring Wheat May 18 663-2s -14-4 -2.14%
Spring Wheat Jul 18 655-4s -12-6 -1.91%
Kansas City
Hard Red Wheat Sep 17 426-4s -10-2 -2.35%
Hard Red Wheat Dec 17 454-0s -10-2 -2.21%
Hard Red Wheat Mar 18 472-0s -10-0 -2.07%
Hard Red Wheat May 18 486-6s -9-6 -1.96%
Hard Red Wheat Jul 18 504-4s -9-0 -1.75%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Oct 17 109.050s +2.450 +2.30%
Live Cattle Dec 17 111.475s +2.675 +2.46%
Feeder Cattle Aug 17 145.350s +3.050 +2.14%
Feeder Cattle Sep 17 146.750s +3.975 +2.78%
Feeder Cattle Oct 17 146.300s +3.975 +2.79%
Lean Hogs Oct 17 70.525s +1.350 +1.95%
Lean Hogs Dec 17 64.700s +1.200 +1.89%
Lean Hogs Feb 18 68.525s +0.850 +1.26%
