Slow US exports weaken crop prices

An anemic weekly U.S. crop export sales report pushed crop futures prices lower on Friday.

Canola could not avoid the downdraft from the American market and March closed just below the $500 a tonne mark at $498.30, down $5.30 on the day.

Compared to Dec. 30, the March contract fell $5.70 on the week or 1.1 percent.

WEAK US EXPORTS

The USDA reported only 87,500 tonnes of U.S. soybean sales, the smallest this crop year and far short of recent weekly activity. It was only a fraction of the expected 800,000 to 1.2 million tonnes.

Read Also

Canada lifts several import tariffs on U.S. goods as talks continue

Starting September 1, Canada will adjust its tariffs on agricultural products, consumer goods and machinery, Prime Minister Mark Carney announced at a press conference in Ottawa on Friday.

Wheat and corn weekly exporters were also slower than expected and that pushed their price down today.

Markets worried this might mark and earlier than normal shift of demand away from the U.S. and toward South America.

Wheat was also pressured by profit taking after a solid run up for most of the week based on dry weather in the U.S. southern Plains and forecasts for freezing weather in the same area and in eastern Europe. That could damage winter wheat wherever there is not a protective blanket of snow.

Compared to Dec. 30 close, soybeans fell 0.9 percent and corn rose 1.7 percent. Chicago soft wheat this week rose 3.7 percent. Kansas hard winter rose 3.6 percent and Minneapolis spring wheat climbed 2.7 percent.

CANOLA DEMAND HOT

The price decline in canola was limited by an exceptionally strong domestic crush pace and strong exports.

The weekly crush topped 200,000 tonnes for only the second time ever and the Canadian Oilseed Processors Association said that almost 94 percent of the industry’s capacity was being used.

The crush margin is not quite as strong as it was in the fall, but it remains attractive and well above the level last year at this time.

The Canadian Grain Commission said that 316,600 tonnes of canola were shipped in the two weeks to Jan. 1.

In the same period last year only 205,300 tonnes were shipped

That brings the total exported his crop year to 4.15 million tonnes, drawing ahead of last year’s pace for the first time. At the same point last year, 4.09 million tonnes had been shipped.

WHAT TO WATCH FOR

The trade next week will be watching to see how cold it gets in the U.S. Plains and in Ukraine to assess the potential for damage to the winter wheat crops.

They will also watch for weather in South America. Argentina has suffered moisture extremes with drought in the south but excessive moisture in the core farming regions in central districts.

Also the U.S. Department of Agriculture releases its monthly supply and demand update on Thursday. The report will also have the first official tally of U.S. winter wheat acreage.

ECONOMY

The Canadian economy created 53,700 jobs in December, far more than expected and the increase came in full time jobs as part time work fell back. Big gains were seen in Quebec and British Colombia.

More people entered the job market and so the Canadian unemployment rate rose to 6.9 percent

In the U.S., the economy created 156,000 jobs last month a little less than expected and the unemployment rate climbed to 4.7 percent from 4.6 percent the month before as more people entered the job market.

However, the total was considered adequate and markets were upbeat about the increase in hourly wages.

The report supports ideas that the Federal Reserve will further increase interest rates three times this year.

The Nasdaq and S&P 500 hit record highs Friday and the Dow came within a whisker of 20,000 points.

The Toronto market stepped back after nearing its record high on Thursday.

The TSX composite closed at 15,496.05, down 90.53 points or 0.58 percent

The Dow Jones industrial average rose 81 points, or 0.41 percent, to 19,981. The S&P 500 gained 11 points, or 0.49 percent, to close at 2,280. The Nasdaq composite advanced 43 points, or 0.79 percent, to 5,531.

For the week, the TSX composite rose 1.4 percent, the Dow rose 1 percent while the S&P gained 1.7 percent and the Nasdaq jumped 2.6 percent.

Light crude oil nearby futures in New York were up 23 cents to US$53.99 per barrel.

The Canadian dollar at noon was US75.67 cents, steady with 75.67 cents the previous trading day. The U.S. dollar at noon was C$1.3216.

Winnipeg ICE Futures Canada dollars per tonne

Canola Mar 2017   498.30   -5.30   -1.05%

Canola May 2017   505.00   -5.30   -1.04%

Canola Jul 2017   509.60   -5.30   -1.03%

Canola Nov 2017   488.80   -5.10   -1.03%

Canola Jan 2018   490.20   -5.00   -1.01%

Milling Wheat Mar 2017   237.00   -3.00   -1.25%

Milling Wheat May 2017   239.00   -2.00   -0.83%

Milling Wheat Jul 2017   239.00   -2.00   -0.83%

Durum Wheat Mar 2017   318.00   -1.00   -0.31%

Durum Wheat May 2017   321.00   -1.00 -0.31%

Durum Wheat Jul 2017   326.00   unch   0.00%

Barley Mar 2017   142.00   unch   0.00%

Barley May 2017   144.00   unch   0.00%

Barley Jul 2017   145.00   unch   0.00%

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound

Chicago

Soybeans Jan 2017   986.00   -17.50   -1.74%

Soybeans Mar 2017   994.75   -17.75   -1.75%

Soybeans May 2017   1003.50   -17.50   -1.71%

Soybeans Jul 2017   1010.75   -17.00   -1.65%

Soybeans Aug 2017   1009.50   -16.25   -1.58%

Soybeans Sep 2017   994.75   -14.75   -1.46%

Soybean Meal Jan 2017   307.50   -6.90   -2.19%

Soybean Meal Mar 2017   311.30   -6.90   -2.17%

Soybean Meal May 2017   314.10   -6.50   -2.03%

Soybean Oil Jan 2017   34.77   -0.23   -0.66%

Soybean Oil Mar 2017   34.98   -0.24   -0.68%

Soybean Oil May 2017   35.24   -0.23   -0.65%

Corn Mar 2017   358.00   -3.25   -0.90%

Corn May 2017   364.75   -2.75   -0.75%

Corn Jul 2017   371.50   -2.75   -0.73%

Corn Sep 2017   377.75   -3.00   -0.79%

Corn Dec 2017   385.50   -3.00   -0.77%

Oats Mar 2017   228.00   -8.50   -3.59%

Oats May 2017   228.00   -8.25   -3.49%

Oats Jul 2017   225.50   -9.75   -4.14%

Oats Sep 2017   225.25   -10.25   -4.35%

Oats Dec 2017   230.75   -5.50   -2.33%

Wheat Mar 2017   423.25   -3.00   -0.70%

Wheat May 2017   434.75   -1.75   -0.40%

Wheat Jul 2017   448.25   -1.00   -0.22%

Wheat Sep 2017   460.50   -0.25   -0.05%

Wheat Dec 2017   476.00   +0.25   +0.05%

Minneapolis

Spring Wheat Mar 2017   552.75   +2.50   +0.45%

Spring Wheat May 2017   547.00   +2.25   +0.41%

Spring Wheat Jul 2017   546.25   +0.50   +0.09%

Spring Wheat Sep 2017   550.25   +0.25   +0.05%

Spring Wheat Dec 2017   558.25   +0.75   +0.13%

Kansas City

Hard Red Wheat Mar 2017   433.50   -1.00   -0.23%

Hard Red Wheat May 2017   445.00   -1.00   -0.22%

Hard Red Wheat Jul 2017   456.50   -0.50   -0.11%

Hard Red Wheat Sep 2017   470.25   -0.25   -0.05%

Hard Red Wheat Dec 2017   487.75   -0.25   -0.05%

Chicago livestock futures in US¢/pound (rounded to two decimal places)

Live Cattle (P) Feb 2017   114.82   -0.26   -0.23%

Live Cattle (P) Apr 2017   114.20   +0.05   +0.04%

Live Cattle (P) Jun 2017   103.98   +0.03   +0.03%

Feeder Cattle (P) Jan 2017   128.32   +0.07   +0.05%

Feeder Cattle (P) Mar 2017   123.80   +0.05   +0.04%

Feeder Cattle (P) Apr 2017   123.70   +0.08   +0.06%

Lean Hogs (P) Feb 2017   63.98   -0.90   -1.39%

Lean Hogs (P) Apr 2017   68.20   -0.13   -0.19%

Lean Hogs (P) May 2017   73.00   +0.38   +0.52%

---

Newsletter Sign Up - Receive free Western Producer newsletters

Breaking ag news stories and commodities markets snapshots delivered daily right to your inbox!

Your Email(Required)

Your Postal Code(Required)

Consent

I consent to receiving emails from Glacier FarmMedia, its affiliates and divisions and third parties, containing agriculture news, updates and promotions. I can unsubscribe at any time

Comments

This field is for validation purposes and should be left unchanged.

Δ