Stronger weekly U.S. export sales dominate Thursday crop market

A surprise in U.S. grain and oilseed weekly sales announced Thursday lifted most crop markets, but canola did not go along for the ride.

In light trade, January canola closed at $465.30, down $1.80 or 0.39 percent, pressured by a stronger loonie and bearish technical chart signals.

Traders await the Dec. 4 posting of the Statistics Canada crop production survey for guidance on how big crops actually were this year. Most of the trade assumes the canola crop is larger than the official estimate from earlier this fall.

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U.S. grains: Soy futures set 15-month high after China agrees to purchases

U.S. soybean futures reached a 15-month high on Thursday after President Donald Trump’s administration said top-importer China agreed to buy tens of millions of tons of American crops in the next few years as part of a trade truce.

On the other hand, canola exports and domestic crush are running ahead of last year’s record pace.

The biggest gains Thursday were in wheat.

This came after Chicago fell to its lowest level in two months on Wednesday. Today’s spark came from strong weekly export sales and bargain buying.

The USDA report said the week’s sales for the 2015-16 marketing year totaled 721,900 tonnes, the most in 3 ½ months. The total topped market forecasts ranging from 200,000 to 400,000 tonnes.

Soybean export sales came in at 1.798 million tonnes, also above market forecasts. Corn export sales of 779,800 tonnes were the most in seven weeks.

Chicago wheat rose 1.55 percent, Minneapolis rose 1.75 percent and Kansas rose 0.82 percent.

The International Grains Council today projected the world wheat harvested area for 2016-17 would fall by about one percent to 548 million acres, citing concerns about dryness, especially in Ukraine.

However, forecasts for moisture in Ukraine and southern Russia this week limited wheat futures’ gain.

January soybeans edged higher by 0.26 percent, with the gain limited by improving weather in Brazil. Central areas had needed rain and showers are now forecast for the next two weeks to recharge soil moisture.

Argentine farmers are expected to plant a record 51 million acres with soy this year, said the agriculture ministry in its first estimate of the season. That is more than the Buenos Aries grain exchange forecast of about 49 million acres.

Argentina’s government also forecast the wheat harvest now underway would be 10 to 12 million tonnes. That is close to the current USDA forecast of 10.5 million tonnes and down from last year’s 12.5 million.

Light crude oil nearby futures in New York were down 21 cents to US$40.54 per barrel.

The Canadian dollar at noon was US75.37 cents, up from 74.89 cents the previous trading day. The U.S. dollar at noon was C$1.3267.

The Standard & Poor’s/TSX Composite Index rose 73.86 points, or 0.55 per cent, to 13,473.83.

The Dow Jones industrial average fell 4.14 points, or 0.02 percent, to 17,733.02, the S&P 500 lost 2.32 points, or 0.11 percent, to 2,081.26 and the Nasdaq Composite dropped 1.56 points, or 0.03 percent, to 5,073.64.

Winnipeg ICE Futures Canada dollars per tonne

Canola Jan 2016 465.30 -1.80 -0.39%

Canola Mar 2016 472.00 -2.30 -0.48%

Canola May 2016 476.60 -1.70 -0.36%

Canola Jul 2016 481.00 -0.90 -0.19%

Canola Nov 2016 475.10 -0.70 -0.15%

Milling Wheat Dec 2015 236.00 +3.00 +1.29%

Milling Wheat Mar 2016 239.00 +3.00 +1.27%

Milling Wheat May 2016 243.00 +3.00 +1.25%

Durum Wheat Dec 2015 320.00 unch 0.00%

Durum Wheat Mar 2016 325.00 unch 0.00%

Durum Wheat May 2016 335.00 unch 0.00%

Barley Dec 2015 188.50 unch 0.00%

Barley Mar 2016 190.50 unch 0.00%

Barley May 2016 191.50 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 2016 860 +2.25 +0.26%

Soybeans Mar 2016 863 +2.25 +0.26%

Soybeans May 2016 869 +2.5 +0.29%

Soybeans Jul 2016 875.25 +2.5 +0.29%

Soybeans Aug 2016 876.75 +2.5 +0.29%

Soybeans Sep 2016 876.25 +2.5 +0.29%

Soybean Meal Dec 2015 286.6 +1 +0.35%

Soybean Meal Jan 2016 286.7 +1 +0.35%

Soybean Meal Mar 2016 287.2 +1.1 +0.38%

Soybean Oil Dec 2015 27.55 +0.11 +0.40%

Soybean Oil Jan 2016 27.84 +0.11 +0.40%

Soybean Oil Mar 2016 28.09 +0.11 +0.39%

Corn Dec 2015 364.25 +2.5 +0.69%

Corn Mar 2016 370.25 +2 +0.54%

Corn May 2016 375.75 +2.25 +0.60%

Corn Jul 2016 380.75 +2 +0.53%

Corn Sep 2016 384.5 +2.25 +0.59%

Oats Dec 2015 247.75 +5 +2.06%

Oats Mar 2016 230 +2 +0.88%

Oats May 2016 228.25 +1 +0.44%

Oats Jul 2016 230.5 +0.25 +0.11%

Oats Sep 2016 234 +0.25 +0.11%

Wheat Dec 2015 490.75 +7.5 +1.55%

Wheat Mar 2016 492.25 +7.25 +1.49%

Wheat May 2016 495.5 +6.25 +1.28%

Wheat Jul 2016 498 +5 +1.01%

Wheat Sep 2016 506.5 +4.75 +0.95%

Minneapolis

Spring Wheat Dec 2015 508.75 +8.75 +1.75%

Spring Wheat Mar 2016 509.75 +8.25 +1.65%

Spring Wheat May 2016 519.5 +8 +1.56%

Spring Wheat Jul 2016 529.5 +7.25 +1.39%

Spring Wheat Sep 2016 540.5 +6.75 +1.26%

Kansas City

Hard Red Wheat Dec 2015 462.5 +3.75 +0.82%

Hard Red Wheat Mar 2016 476.25 +3 +0.63%

Hard Red Wheat May 2016 486.5 +3.25 +0.67%

Hard Red Wheat Jul 2016 496.75 +3.25 +0.66%

Hard Red Wheat Sep 2016 510.25 +2.75 +0.54%

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