Strengthening loonie hurts canola

Wheat offered entertainment and speculation to world crop markets Monday, surging higher.

But weakening soybean meal futures and a stronger dollar hit loonie-denominated canola futures, weakening them.

“The funds love the wheat market. They love, love, love the wheat market,” said broker Ken Ball of P.I. Financial in Winnipeg.

“They’ve been working it for about a month now.”

Ball attributed much of the surge to speculative funds forcing shorts in the wheat market to cover their positions.

Chicago wheat rose 28-29 cents per bushel, or about 3.6 percent, while Kansas City rose 23-24 cents and Minneapolis spring wheat futures rose 29 cents for December but only 21 cents for March.

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That took December Chicago wheat above the $6 level, somewhere it hasn’t been since July.

Corn and soybeans were virtually unchanged on the day, although soybean meal futures fell a few cents.

Some attributed the bullish move in wheat contracts to chatter about Russia possibly restricting wheat exports in order to keep a lid on domestic prices, which have been surging because of the falling ruble.

The ruble hit an all-time low early Monday, revealing its petrocurrency nature. Oil has been in freefall in recent weeks and that has also dragged down the Canadian dollar, helping firm canola futures.

But oil and the dollar reversed course during the Monday session, with West Texas Intermediate futures rising 4.5 percent to regain the $69 per barrel level.

That helped provide canola with a chance to fall in value and it dropped $2.90 per tonne to $422.40 for January and fell by $3.70 to $422 for March.

Soybeans have become a less exciting market than wheat recently, suggesting to some that speculative action might be moving from one to the other.

“It could be cycling money out of beans and meal,” said Ball.

“The beans and meal look like they’ve peaked.”

Soybeans were also restrained by fears that China’s flagging economy might not power the kinds of hefty buying the market has grown accustomed to.

Light crude oil nearby futures in New York rose $2.85 to US$69 per barrel.

The Canadian dollar at noon was US88.15 cents, up from 87.51 cents the previous trading day. The U.S. dollar at noon was C$1.1344.

Winnipeg ICE Futures Canada dollars per tonne
Canola Jan 2015    422.40    -2.90    -0.68%
Canola Mar 2015    422.00    -3.70    -0.87%
Canola May 2015    423.60    -3.80    -0.89%

Canola Jul 2015    424.80    -3.10    -0.72%
Canola Nov 2015    420.60    -2.90    -0.68%

Milling Wheat Dec 2014    243.00    +7.00    +2.97%
Milling Wheat Mar 2015    251.00    +8.00    +3.29%
Milling Wheat May 2015    253.00    +7.00    +2.85%

Durum Wheat Dec 2014    356.50    unch    0.00%
Durum Wheat Mar 2015    357.50    unch    0.00%
Durum Wheat May 2015    357.50    unch    0.00%

Barley Dec 2014    174.00    unch    0.00%
Barley Mar 2015    177.00    unch    0.00%
Barley May 2015    177.00    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 2015    1017    +1    +0.10%
Soybeans Mar 2015    1024    +1.5    +0.15%
Soybeans May 2015    1030.75    +1.5    +0.15%
Soybeans Jul 2015    1035.25    +2    +0.19%
Soybeans Aug 2015    1034.75    +2    +0.19%
Soybeans Sep 2015    1012.75    +1.25    +0.12%

Soybean Meal Dec 2014    384.4    -6.7    -1.71%
Soybean Meal Jan 2015    362    -4.3    -1.17%
Soybean Meal Mar 2015    349.1    -2    -0.57%

Soybean Oil Dec 2014    32.22    +0.04    +0.12%
Soybean Oil Jan 2015    32.36    +0.07    +0.22%
Soybean Oil Mar 2015    32.55    +0.14    +0.43%

Corn Dec 2014    375.5    -0.25    -0.07%
Corn Mar 2015    389.75    +1    +0.26%
Corn May 2015    398.25    +1.25    +0.31%
Corn Jul 2015    405    +1.25    +0.31%
Corn Sep 2015    410    +1    +0.24%

Oats Dec 2014    295.75    +1.25    +0.42%

Oats Mar 2015    306.25    -0.25    -0.08%
Oats May 2015    309.5    -1.25    -0.40%
Oats Jul 2015    311.5    -2.5    -0.80%
Oats Sep 2015    318.25    +9.25    +2.99%

Wheat Dec 2014    606.75    +29.5    +5.11%
Wheat Mar 2015    606.75    +28.25    +4.88%
Wheat May 2015    612.5    +28    +4.79%
Wheat Jul 2015    616.5    +27.5    +4.67%
Wheat Sep 2015    623.5    +27    +4.53%

Minneapolis
Spring Wheat Dec 2014    650    +29    +4.67%
Spring Wheat Mar 2015    637.75    +21.5    +3.49%
Spring Wheat May 2015    645    +21.5    +3.45%
Spring Wheat Jul 2015    651.5    +21.25    +3.37%
Spring Wheat Sep 2015    658    +20    +3.13%

Kansas City
Hard Red Wheat Dec 2014    660.25    +23.25    +3.65%
Hard Red Wheat Mar 2015    664.25    +24.25    +3.79%
Hard Red Wheat May 2015    665    +24    +3.74%
Hard Red Wheat Jul 2015    660    +24.5    +3.86%
Hard Red Wheat Sep 2015    669.5    +24    +3.72%