Canola and the rest of the crop futures market fell on Monday as better weather in most areas of Canada and the United States in recent days allowed farmers to start to wrap up seeding.
Futures were also pressured by rain in Europe and in the dry Yangtze River region of China.
Oilseeds were also pressured lower by falling crude oil. The Organization of Petroleum Exporting Countries is considering increasing production quotas. Some member fear that high oil prices are slowing economic recovery in developed countries and could push the world into double dip recession.
July spring wheat in Minneapolis was the only contract to trade higher for part of the day, but by the close it too had fallen.
The pressure on the nearby contract might have been linked to a lack of farmer deliveries as all efforts were focused on seeding. Also, road bans, wet yards and a host of logistics problems are preventing grain movement in large areas of the southwestern Prairies and North Dakota.
There have been reports of millers paying large premiums over the futures to get grain.
Seeding across the Prairies is about 80 percent complete, according to estimates by Canadian Wheat Board weather and crop analysts. That compares to 78 percent by this date last year, and 93 percent on average.
Central and northern growing regions in Alberta and Saskatchewan are most finished seeding and would welcome rain. Wet areas in southwestern Manitoba and eastern Saskatchewan are less than 25percent done, with many farmers giving up hope of planting before the June 20 crop insurance deadline, the CWB said.
After the close, the US Department of Agriculture reported that corn is 94 percent planted, compared to the five year average of 98 percent. Soybeans are 68 percent planted compared to 82 percent normally.
Nationally, U.S. spring wheat is 79 percent in the ground, compared to 98 percent on average.
In North Dakota, only 25 percent of durum is planted, compared to 94 percent on average.
See the June 9 Western Producer for a story on the implications for the durum market.
North Dakota’s canola crop is 51 percent planted, compared to 95 on average.
Winnipeg (per tonne)
Canola Jul 11 $588.70, down $8.40
Canola Nov 11 $592.30, down $7.50
Canola Jan 12 $600.80, down $6.80
Canola Mar 12 $608.80, down $5.40
The previous day’s best basis was $15 under the July contract according to ICE Futures Canada in Winnipeg.
The July contract’s 14-day Relative Strength Index was 55. The rule of thumb is an RSI of 30 indicates an over sold market and 70 indicates an over bought market.
Western Barley Jul 11 $205 unchanged
Chicago (per bushel)
Soybeans Jul 11 $13.8325, down 31.25 cents
Soybeans Aug 11 $13.7775, down 29.75
Soybeans Nov 11 $13.7275, down 24.25
Corn Jul 11 $7.32, down 22.0
Corn Dec 11 $6.67, down 19.25
Oats Jul 11 $3.72, down 6.0
Oats Dec 11 $3.89, down 6.0
Minneapolis (per bushel)
Spring Wheat Jul 11 $10.42, down 18.5 cents
Spring Wheat Sep 11 $9.6275, down 30.75
Spring Wheat Dec 11 $9.655, down 27.0
Light crude oil nearby futures in New York fell $1.21 to $99.01 US per barrel.
The Canadian dollar at noon was $1.0220 US, down from $1.0235 the previous trading day. The U.S. dollar at noon was 97.85 cents Cdn.
Equities were battered by the falling oil price and worries about the slowing U.S. economy and rising debt.
The Toronto Stock Exchange composite index closed down 199.25 points, or 1.47 percent, at 13,318.66.
The Standard and Poor’s 500 index fell 13.99 points, or 1.08 percent, to 1,286.17.
