Spring wheat soars 3.2% on hot weather forecast, canola also rises

Weather reports that predict hot weather for the northern plains next week drove spring wheat futures to fresh multi year highs on Wednesday.

Most traded September Minneapolis wheat soared 3.2 percent.

Canola also rose even as the Canadian dollar jumped higher.
WATCH THIS WEEK’S VIDEO CROP MARKET UPDATE FOR MORE ON THE WEATHER AND ITS MARKET IMPLICATIONS

Traders were also adjusting positions ahead of Statistics Canada’s seeded acreage report on Thursday and USDA ‘s planting report on Friday.

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USDA also releases its quarterly stocks report on Friday.

The U.S. spring wheat crop is in the worst condition since 1988. There are anecdotal reports of farmers in the Dakotas cutting their spring wheat for hay for livestock feed.

It is expected to get hot – into the mid 30s C by July 4 in the U.S. Plains.

Temperatures in the southern Prairies are also expected to climb in the first week of July, into the high 20s and low 30s C.

That helped support canola, with November up $4 to $482.10 Wednesday.

The rally had to contend with the headwind from the strongest rally in the loonie since March.

Bank of Canada Governor Stephen Poloz in a speech said that low interest rates have done their job and it is time to consider change.

That had the market talking about an interest rate hike when the bank meets in July.

CBOT soybeans firmed while corn eased after beneficial showers moved across top producer Iowa overnight. However, forecasts called for warmer and drier conditions in the Midwest after the Fourth of July holiday.

STATSCAN PREVIEW

The average of a Reuters poll of the trade sees canola area at 22.2 million acres, slightly less than the 22.39 forecast this spring but up from last year’s 20.37 million.

The midpoint of the range of forecasts for all wheat it 22.7 million acres, down from 23.18 million in the spring. Last year it was 23.21 million.

It sees durum at 5.0 million acres, down from 5.15 million in the spring. Last year’s area was 6.19 million.

It sees barley area slightly higher than in the spring.

Peas at 4.0 million acres and lentil at 4.4 million are similar to the spring forecast but down from last year.

USDA FORECAST

A Reuters poll shows the mid point of the trade’s expectation for USDA acreage on Friday for corn is 89.90 million acres, down from the March forecast of 89.99 million

It sees soybeans at 89.75 million up from he March forecast of 89.48 million.

All wheat is seen at 46.07 million acres compared to 46.06 in March.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 50 cents US$44.74 per barrel.

In the afternoon, the Canadian dollar was trading around US76.74 cents, up from 75.94 cents the previous trading day. The U.S. dollar was C$1.3031.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 74.36 points, or 0.49 percent, at 15,355.58.

The Dow Jones Industrial Average rose 143.95 points, or 0.68 percent, to 21,454.61, the S&P 500 gained 21.31 points, or 0.88 percent, to 2,440.69 and the Nasdaq Composite added 87.79 points, or 1.43 percent, to 6,234.41.

Winnipeg ICE Futures Canada dollars per tonne

Canola Jul 2017 519.50 +6.80 +1.33%

Canola Nov 2017 482.10 +4.00 +0.84%

Canola Jan 2018 488.00 +4.10 +0.85%

Canola Mar 2018 493.80 +4.30 +0.88%

Canola May 2018 497.50 unch 0.00%

Milling Wheat Jul 2017 294.00 +8.00 +2.80%

Milling Wheat Oct 2017 285.00 +7.00 +2.52%

Milling Wheat Dec 2017 288.00 +7.00 +2.49%

Durum Wheat Jul 2017 277.00 unch 0.00%

Durum Wheat Oct 2017 267.00 unch 0.00%

Durum Wheat Dec 2017 270.00 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 914.00 +2.75 +0.30%

Soybeans Aug 2017 919.00 +3.00 +0.33%

Soybeans Sep 2017 920.75 +3.50 +0.38%

Soybeans Nov 2017 921.75 +4.25 +0.46%

Soybeans Jan 2018 929.50 +4.25 +0.46%

Soybeans Mar 2018 936.00 +4.00 +0.43%

Soybean Meal Jul 2017 294.60 +0.60 +0.20%

Soybean Meal Aug 2017 296.60 +0.80 +0.27%

Soybean Meal Sep 2017 298.10 +1.40 +0.47%

Soybean Oil Jul 2017 32.12 +0.04 +0.12%

Soybean Oil Aug 2017 32.25 +0.05 +0.16%

Soybean Oil Sep 2017 32.36 +0.03 +0.09%

Corn Jul 2017 356.75 -2.50 -0.70%

Corn Sep 2017 366.25 -1.50 -0.41%

Corn Dec 2017 376.25 -1.25 -0.33%

Corn Mar 2018 386.00 -1.50 -0.39%

Corn May 2018 392.25 -1.00 -0.25%

Oats Jul 2017 266.50 +20.00 +8.11%

Oats Sep 2017 261.00 +12.00 +4.82%

Oats Dec 2017 258.75 +5.00 +1.97%

Oats Mar 2018 260.75 +4.25 +1.66%

Oats May 2018 260.25 +4.00 +1.56%

Wheat Jul 2017 457.25 +4.00 +0.88%

Wheat Sep 2017 473.00 +4.00 +0.85%

Wheat Dec 2017 495.25 +4.00 +0.81%

Wheat Mar 2018 510.00 +3.25 +0.64%

Wheat May 2018 520.75 +3.00 +0.58%

Minneapolis

Spring Wheat Jul 2017 704.75 +23.25 +3.41%

Spring Wheat Sep 2017 708.00 +22.00 +3.21%

Spring Wheat Dec 2017 701.00 +20.25 +2.97%

Spring Wheat Mar 2018 694.25 +18.50 +2.74%

Spring Wheat May 2018 686.25 +17.00 +2.54%

Kansas City

Hard Red Wheat Jul 2017 461.50 +4.25 +0.93%

Hard Red Wheat Sep 2017 480.25 +4.50 +0.95%

Hard Red Wheat Dec 2017 505.75 +4.25 +0.85%

Hard Red Wheat Mar 2018 520.25 +4.75 +0.92%

Hard Red Wheat May 2018 529.00 +5.00 +0.95%

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

Live Cattle (P) Jun 2017 120.25 +0.65 +0.54%

Live Cattle (P) Aug 2017 115.62 +0.59 +0.51%

Live Cattle (P) Oct 2017 113.65 +0.88 +0.78%

Feeder Cattle (P) Aug 2017 146.40 +1.53 +1.06%

Feeder Cattle (P) Sep 2017 146.40 +1.88 +1.30%

Feeder Cattle (P) Oct 2017 145.08 +2.11 +1.48%

Lean Hogs (P) Jul 2017 87.92 +1.45 +1.68%

Lean Hogs (P) Aug 2017 79.48 +0.93 +1.18%

Lean Hogs (P) Oct 2017 68.18 +0.53 +0.78%

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