Oilseeds fall Thursday on Brazil currency devaluation

Sharply lower soybean futures dragged down other crop futures on Thursday, including canola.
Soybeans were hit by a surprize plunge in the value of Brazil’s currency, sparked by new allegations that Brazilian President Michel Temer condoned bribes to silence a witness in a corruption probe. The scandal throws Temer’s presidency into turmoil, raising doubt that he will be able to deliver on economic reforms that have recently lifted the country’s currency, called the real.
The recent strength of the real had weakened the domestic price of soybeans and discouraged Brazilian farmers from selling their bumper harvest.

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Today’s seven percent devaluation improved the domestic soybean price and Brazilian farmers flocked to sell. It would also give Brazilian soybeans a competitive advantage on world markets.
Chicago July soybeans fell more than three percent while November fell more than two percent.
That also weighed down canola futures, even though there was frost in parts of the Prairies overnight that might have damaged canola seedlings.
Another factor that could support oilseed prices in coming days is the forecast for rain that could disrupt the final leg of Argentina’s soybean harvest.
The Buenos Aires Grains Exchange warned of the rain today, noting that many areas of the country already have saturated soil from earlier rain.
“There are still about 4.6 million hectares of soy to be harvested nationwide, 30 percent of which is in the northern part of the country and 35 percent in areas affected by excessive moisture,” the exchange’s weekly crop report said, Reuters reported.
The weakness in soybeans also weighed down corn and Chicago wheat, but Minneapolis spring wheat edged a little higher, reflecting ideas that strong protein wheat will again be in short supply even as overall wheat stocks will be plentiful.
EU CROP PROSPECTS
European analysts expect the canola harvest there will be average, even with the stress the crop has faced from dry weather and spring frosts.
The EU is expected to harvest about 21 million tonnes, up from 20.5 million last year.
However, consultancy Strategie Grains lowered its forecasts for this year’s EU soft wheat crop to 142.7 million, down 1.1 million from last month, due to dry and cold weather in April.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up 28 cents to US$49.35 per barrel.
In the afternoon, the Canadian dollar was trading around US73.49 cents, little changed from 73.45 cents the previous trading day. The U.S. dollar was C$1.3607.
The Toronto Stock Exchange’s S&P/TSX composite index ended the day up 3.52 points, or 0.02 percent, at 15,277.20.
The Dow Jones Industrial Average rose 56.09 points, or 0.27 percent, to 20,663.02, the S&P 500 gained 8.69 points, or 0.37 percent, to 2,365.72 and the Nasdaq Composite added 43.89 points, or 0.73 percent, to 6,055.13.

Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2017 521.30 -6.40 -1.21%
Canola Nov 2017 498.50 -7.40 -1.46%
Canola Jan 2018 503.30 -7.50 -1.47%

Canola Mar 2018 507.40 -7.70 -1.49%
Canola May 2018 510.20 unch 0.00%

Milling Wheat Jul 2017 237.00 +2.00 +0.85%
Milling Wheat Oct 2017 236.00 +1.00 +0.43%
Milling Wheat Dec 2017 238.00 +1.00 +0.42%

Durum Wheat Jul 2017 274.00 unch 0.00%
Durum Wheat Oct 2017 267.00 -2.00 -0.74%
Durum Wheat Dec 2017 267.00 -2.00 -0.74%

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 944.75 -31.00 -3.18%
Soybeans Aug 2017 946.75 -28.25 -2.90%
Soybeans Sep 2017 945.00 -25.50 -2.63%
Soybeans Nov 2017 944.75 -23.00 -2.38%
Soybeans Jan 2018 952.25 -23.00 -2.36%
Soybeans Mar 2018 956.50 -22.00 -2.25%

Soybean Meal Jul 2017 307.50 -7.80 -2.47%
Soybean Meal Aug 2017 308.40 -7.70 -2.44%
Soybean Meal Sep 2017 309.30 -7.30 -2.31%

Soybean Oil Jul 2017 32.44 -0.71 -2.14%
Soybean Oil Aug 2017 32.53 -0.72 -2.17%
Soybean Oil Sep 2017 32.65 -0.69 -2.07%

Corn Jul 2017 366.00 -5.50 -1.48%
Corn Sep 2017 373.75 -5.50 -1.45%
Corn Dec 2017 384.00 -5.00 -1.29%
Corn Mar 2018 394.00 -4.50 -1.13%
Corn May 2018 399.50 -5.00 -1.24%

Oats Jul 2017 236.00 +0.50 +0.21%
Oats Sep 2017 223.75 -3.75 -1.65%
Oats Dec 2017 221.50 -2.50 -1.12%
Oats Mar 2018 224.00 -3.25 -1.43%
Oats May 2018 224.00 -3.25 -1.43%

Wheat Jul 2017 425.75 -1.25 -0.29%
Wheat Sep 2017 439.75 -0.50 -0.11%
Wheat Dec 2017 461.50 -0.25 -0.05%
Wheat Mar 2018 479.25 -0.25 -0.05%
Wheat May 2018 490.50 unch 0.00%

Minneapolis
Spring Wheat Jul 2017 544.75 +3.75 +0.69%
Spring Wheat Sep 2017 551.50 +3.75 +0.68%
Spring Wheat Dec 2017 559.25 +3.25 +0.58%
Spring Wheat Mar 2018 567.25 +2.75 +0.49%
Spring Wheat May 2018 572.25 +2.75 +0.48%

Kansas City
Hard Red Wheat Jul 2017 426.00 -0.50 -0.12%
Hard Red Wheat Sep 2017 443.25 -0.50 -0.11%
Hard Red Wheat Dec 2017 468.00 -0.75 -0.16%
Hard Red Wheat Mar 2018 482.75 -0.50 -0.10%
Hard Red Wheat May 2018 493.25 -0.50 -0.10%

Chicago livestock futures in US¢/pound (rounded to two decimal places)
Live Cattle (P) Jun 2017 122.92 +0.47 +0.38%
Live Cattle (P) Aug 2017 119.65 +0.83 +0.70%
Live Cattle (P) Oct 2017 115.80 +0.22 +0.19%

Feeder Cattle (P) May 2017 142.28 +0.31 +0.22%
Feeder Cattle (P) Aug 2017 149.35 +1.63 +1.10%
Feeder Cattle (P) Sep 2017 149.25 +1.38 +0.93%

Lean Hogs (P) Jun 2017 79.15 +0.25 +0.32%
Lean Hogs (P) Jul 2017 79.28 +0.28 +0.35%
Lean Hogs (P) Aug 2017 78.72 +0.05 +0.06%

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