Canola futures edged lower on Thursday as provincial crop reports showed good seeding progress before this week’s rain.
Also, the stronger Canadian dollar is weighing down canola. Soybeans and soy oil were also lower.
July canola dropped $3.30 to $520.40 per tonne.
New-crop November canola fell $4.40 to $493.90
Saskatchewan seeding progress last week soared by 30 percentage points, according to Saskatchewan Agriculture.
It now stands at 60 percent, shy of the five-year average of 65 percent. Most seeding progress was in the south. Northern areas are far behind.
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Alberta Crop Report: Rains in the south, dryness in the north
Rain fell onto the southern half of Alberta last week, while hot and dry conditions persisted in the northern half, according to the province’s crop report released on July 18.
Likely five percent of acres in the province will not be seeded because of excessively wet fields, the report said.
CLICK HERE TO WATCH OUR WEEKLY CROP MARKET ANALYSIS
Heavy rain in Alberta and northwestern Saskatchewan on Wednesday will likely slow seeding progress for several days. Strong wind accompanied the storm causing drifting soil that in some places buried newly emerged seedlings.
More rain is falling today in several locations across the Prairies.
WHEAT RISES
Minneapolis spring wheat edged up by about a penny per bushel.
It was stronger earlier in the day on short covering as concern rose about persistent wet weather in U.S. winter wheat areas causing disease and quality problems.
RUSSIA TO BE STRONG COMPETITOR AGAIN
Private forecaster SovEcon expects Russia’s wheat crop this year will be 63 million tonnes, down from the record 73.3 million produced in 2016.
However, because of record carry in stocks, the total amount of wheat available for export should remain almost steady at 27 million tonnes, compared to exports of 27.5 million tonnes in the current crop year.
IGC CUTS CORN STOCKS OUTLOOK
The International Grains Council issues a new monthly report today.
Its wheat production forecast for 017-18 stayed the same at 736 million tonnes, down from last year’s record 754 million.
Wheat carryout was also the same at 239 million tonnes, however, it’s sub tally for carryout held by major exports bell to 68 million tonnes, down from 73 million in last month’s report and down from 79 million at the end of 2016-17.
Its outlook for world corn saw a major increase in its consumption outlook.
Corn production is seen at 1.026 billion tonnes, the same as last month. Consumption is estimated at 1.054 billion tonnes, up eight million from last month.
The big change is in world carryout stocks, which are pegged at 197 million tonnes, down 10 million from last month and down 29 million from the 226 million at the end of 2016-17.
The increase in consumption reflects increased corn used in ethanol in the United States and for starch production in China.
OUTSIDE MARKETS
Light crude oil nearby futures in New York plunged $2.46 cents to US$48.90 per barrel. OPEC and some non-OPEC producers agreed to extend supply cuts of 1.8 million barrels per day until the end of the first quarter of 2018, disappointing some traders who had hoped for deeper or longer cuts.
In the afternoon, the Canadian dollar was trading around US74.19 cents, down from 74.53 cents the previous trading day. The U.S. dollar was C$1.3479.
The fall in oil weighed down the Toronto market.
The Toronto Stock Exchange’s S&P/TSX composite index closed down 8.76 points, or 0.06 percent, at 15,410.73.
Strong quarterly results at Best Buy and other retailers lifted American stocks prices. The S&P and Nasdaq hit fresh record highs.
The Dow Jones Industrial Average rose 69.37 points, or 0.33 percent, to 21,081.79, the S&P 500 gained 10.63 points, or 0.44 percent, to 2,415.02 and the Nasdaq Composite added 42.23 points, or 0.69 percent, to 6,205.26.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2017 520.40 -3.30 -0.63%
Canola Nov 2017 493.90 -4.40 -0.88%
Canola Jan 2018 499.20 -4.60 -0.91%
Canola Mar 2018 503.70 -5.00 -0.98%
Canola May 2018 506.60 -4.90 -0.96%
Milling Wheat Jul 2017 242.00 -2.00 -0.82%
Milling Wheat Oct 2017 240.00 -2.00 -0.83%
Milling Wheat Dec 2017 242.00 -2.00 -0.82%
Durum Wheat Jul 2017 279.00 +3.00 +1.09%
Durum Wheat Oct 2017 267.00 unch 0.00%
Durum Wheat Dec 2017 267.00 unch 0.00%
Barley Jul 2017 138.00 unch 0.00%
Barley Oct 2017 140.00 unch 0.00%
Barley Dec 2017 140.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2017 939.50 -8.75 -0.92%
Soybeans Aug 2017 941.50 -8.75 -0.92%
Soybeans Sep 2017 938.75 -9.00 -0.95%
Soybeans Nov 2017 939.25 -8.75 -0.92%
Soybeans Jan 2018 946.75 -8.50 -0.89%
Soybeans Mar 2018 951.00 -7.75 -0.81%
Soybean Meal Jul 2017 304.70 -1.70 -0.55%
Soybean Meal Aug 2017 305.80 -1.80 -0.59%
Soybean Meal Sep 2017 307.00 -1.90 -0.62%
Soybean Oil Jul 2017 32.04 -0.24 -0.74%
Soybean Oil Aug 2017 32.15 -0.23 -0.71%
Soybean Oil Sep 2017 32.27 -0.23 -0.71%
Corn Jul 2017 369.25 -2.00 -0.54%
Corn Sep 2017 377.00 -2.00 -0.53%
Corn Dec 2017 387.50 -2.25 -0.58%
Corn Mar 2018 397.50 -1.75 -0.44%
Corn May 2018 403.50 -1.75 -0.43%
Oats Jul 2017 242.00 +3.50 +1.47%
Oats Sep 2017 234.00 +2.75 +1.19%
Oats Dec 2017 225.25 -1.50 -0.66%
Oats Mar 2018 224.50 -4.75 -2.07%
Oats May 2018 224.50 -4.75 -2.07%
Wheat Jul 2017 430.75 -1.75 -0.40%
Wheat Sep 2017 444.25 -1.75 -0.39%
Wheat Dec 2017 466.50 -1.25 -0.27%
Wheat Mar 2018 485.00 -1.00 -0.21%
Wheat May 2018 497.50 -1.00 -0.20%
Minneapolis
Spring Wheat Jul 2017 562.25 +1.25 +0.22%
Spring Wheat Sep 2017 567.75 +1.00 +0.18%
Spring Wheat Dec 2017 573.75 +0.50 +0.09%
Spring Wheat Mar 2018 580.75 +1.25 +0.22%
Spring Wheat May 2018 584.50 +1.25 +0.21%
Kansas City
Hard Red Wheat Jul 2017 431.25 -1.50 -0.35%
Hard Red Wheat Sep 2017 449.00 -1.50 -0.33%
Hard Red Wheat Dec 2017 474.25 -1.50 -0.32%
Hard Red Wheat Mar 2018 489.50 -1.75 -0.36%
Hard Red Wheat May 2018 499.75 -1.75 -0.35%
Chicago livestock futures in US¢/pound (rounded to two decimal places)
Live Cattle (P) Jun 2017 123.92 +1.80 +1.47%
Live Cattle (P) Aug 2017 121.40 +1.48 +1.23%
Live Cattle (P) Oct 2017 117.95 +1.20 +1.03%
Feeder Cattle (P) May 2017 143.52 -0.48 -0.33%
Feeder Cattle (P) Aug 2017 151.12 +2.44 +1.64%
Feeder Cattle (P) Sep 2017 150.98 +2.16 +1.45%
Lean Hogs (P) Jun 2017 80.95 +0.75 +0.94%
Lean Hogs (P) Jul 2017 80.58 +0.73 +0.91%
Lean Hogs (P) Aug 2017 80.55 +0.70 +0.88%
