Stronger oil prices and a weaker U.S. dollar lifted the Canadian dollar on Tuesday, pressuring canola lower at the close, but for most of the day canola was higher.
The strength in the market early was a holdover from Monday’s rally sparked by concerns about crop damage from frost on the weekend and the dry weather that grips most of the Prairies.
It looks like most the Prairies will have little likelihood of substantial rain for the rest of the week. There could be light showers in Saskatchewan on Friday.
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July canola traded as high as $497.50, just $2.50 shy of the $500 level, which was about the level canola peaked at in the spring of 2014 before its summer collapse.
The weaker U.S. dollar helped lift U.S. crop futures.
Minneapolis and Kansas wheat gained the most, rising more than four percent on worries about the quality and size of the hard red winter wheat crop after the recent heavy rains.
Also there is some concern about frosted wheat in Canada and North Dakota and a turn to drier weather in Europe.
Wheat was also supported as India’s government monsoon forecaster cut its rain outlook to 88 percent of normal due to an El Nino weather pattern. Read the June 4 Western Producer for an in depth story on the wheat market implications of a potential drought in India.
There are also worries that an El Nino would trim palm oil production.
Rallies in wheat are larger these days because of short covering as the funds, which are still heavily net short, unwind their bearish bets that were placed when the trade was focused on ample global supplies.
The rally in wheat helped lift corn.
Soybean were supported by a slower pace of soybean seeding in the U.S. in the last week. More rain in the Midwest this week could further delay seeding.
The U.S. Department of Agriculture’s weekly crop condition report on June 1 showed the amount of U.S. winter wheat rating good to excellent dropped to 44 percent from 45 percent the week before.
State ratings for Kansas and Oklahoma were little changed but Texas declined.
In that state the amount rated as poor to very poor rose four percentage points to 17 percent, the amount rated fair rose one point to 32 percent and the amount rated good to excellent fell four points to 51 percent.
Reuters reported that the U.S. dollar was on track to post its biggest one-day loss against the euro since mid-March on expectations that Greece would reach a deal with its creditors.
The Canadian dollar at noon was US80.50 cents, up from 79.68 cents the previous trading day. The U.S. dollar at noon was C$1.2423.
Light crude oil nearby futures in New York were up $1.06 to US$61.26 per barrel.
The TSX composite rose 30.61 points or 0.2 percent to 15,104.74.
The Dow Jones industrial average fell 28.99 points, or 0.16 percent, to 18,011.38, the S&P 500 lost 2.15 points, or 0.1 percent, to 2,109.58 and the Nasdaq Composite dropped 6.40 points, or 0.13 percent, to 5,076.52.
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2015 482.60 -2.50 -0.52%
Canola Nov 2015 479.60 -1.70 -0.35%
Canola Jan 2016 476.40 -3.00 -0.63%
Canola May 2016 471.30 -3.50 -0.74%
Milling Wheat Jul 2015 218.00 +8.00
Milling Wheat Oct 2015 220.00 +8.00
Milling Wheat Dec 2015 220.00 +8.00
Durum Wheat Jul 2015 298.00 unch 0.00%
Durum Wheat Oct 2015 298.00 unch 0.00%
Durum Wheat Dec 2015 303.00 unch 0.00%
Barley Jul 2015 191.00 unch 0.00%
Barley Oct 2015 181.00 +4.00
Barley Dec 2015 186.00 +4.00
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Jul 2015 940.75 +14.75 +1.59%
Soybeans Aug 2015 927.5 +14.5 +1.59%
Soybeans Sep 2015 917.25 +15.75 +1.75%
Soybeans Nov 2015 917 +15.75 +1.75%
Soybeans Jan 2016 923.75 +15.5 +1.71%
Soybeans Mar 2016 928 +15 +1.64%
Soybean Meal Jul 2015 301.8 +5.2 +1.75%
Soybean Meal Aug 2015 296.5 +5.2 +1.79%
Soybean Meal Sep 2015 293.8 +5.5 +1.91%
Soybean Oil Jul 2015 34.17 -0.34 -0.99%
Soybean Oil Aug 2015 34.18 -0.33 -0.96%
Soybean Oil Sep 2015 34.19 -0.33 -0.96%
Corn Jul 2015 359 +6.75 +1.92%
Corn Sep 2015 365.25 +7 +1.95%
Corn Dec 2015 376 +7 +1.90%
Corn Mar 2016 386.25 +7.25 +1.91%
Corn May 2016 393.5 +7.5 +1.94%
Oats Jul 2015 252.75 +8.25 +3.37%
Oats Sep 2015 259.5 +7.25 +2.87%
Oats Dec 2015 266 +7 +2.70%
Oats Mar 2016 271.5 +7 +2.65%
Oats May 2016 278.25 +7 +2.58%
Wheat Jul 2015 512.5 +18.75 +3.80%
Wheat Sep 2015 517.25 +18.5 +3.71%
Wheat Dec 2015 530.75 +18 +3.51%
Wheat Mar 2016 544.5 +17.75 +3.37%
Wheat May 2016 553.5 +17.75 +3.31%
Minneapolis
Spring Wheat Jul 2015 571.25 +23.25 +4.24%
Spring Wheat Sep 2015 580.25 +22.25 +3.99%
Spring Wheat Dec 2015 594.5 +23 +4.02%
Spring Wheat Mar 2016 608.25 +23.75 +4.06%
Spring Wheat May 2016 617.5 +24 +4.04%
Kansas City
Hard Red Wheat Jul 2015 535.5 +21.25 +4.13%
Hard Red Wheat Sep 2015 545.5 +22.25 +4.25%
Hard Red Wheat Dec 2015 562.5 +22.5 +4.17%
Hard Red Wheat Mar 2016 576.25 +23 +4.16%
Hard Red Wheat May 2016 585.25 +23.25 +4.14%
