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 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 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%
