Wheat market fear faded Monday, as the crop’s futures left behind the last remnants of the rally provoked by the end-of-April snowstorm that hit the United States southern plains.
Losses of more than two percent on Kansas City and Chicago July wheat contracts Monday dropped wheat futures back into the trading range held through much of April.
On May 1 a weekend snowstorm in the southern plains and rain in the eastern corn belt caused grain markets to shoot higher, with gaps appearing in wheat contracts on fear of freezing, stem breakage and other possible damage from the storm.
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“You look back a few days later and say ‘Maybe there wasn’t so much to get excited by,’ especially without follow-up help.”
Around the world, recent wheat growing conditions have not been bad, with good progress in spring wheat seeding in the U.S. northern plains and the French wheat crop receiving rain.
“We’ve given up all the gains and a bit more,” said Driedger.
In other crop futures, Monday was not a dramatic day.
Oats fell in tandem with a six cent drop in hard red spring wheat, but other crops moved only a few cents.
July canola stayed above $520 per tonne, while November remained above $504, maintaining the longstanding inversion as the old crop year’s short stocks head toward a new crop harvest expected to provide more comfortable supply.
Western Canadian weather hasn’t been bad or great, leaving traders watching closely but having no major story to trade on. Cool, wet weather has been a concern in some areas, but seeding has been going well in many places.
US PLANTING PROGRESS
American farmers made a good advance on seeding last week.
The USDA after the market close said that as of Sunday 71 percent of the corn crop was in the ground. The five year average is 70 percent.
Thirty-two percent of soybeans were planted, equal to the five year average.
Spring wheat planting advanced to 78 percent complete, ahead of the five year average of 73 percent.
The winter wheat condition report said the amount in good to excellent shape declined to 51 percent from 53 percent the week before.
The amount in fair conditions remained at 32 percent while the amount that is poor to very poor rose to 17 percent from 15 percent the week before.
OTHER MARKETS
Crop futures were one of the weakest parts of the commodities complex Monday, stronger only than meats. Other classes slightly rose.
Light crude oil nearby futures in New York were up $1.01 to US$48.85 per barrel.
In the afternoon, the Canadian dollar was trading around US73.32 cents, up from 72.93 cents the previous trading day. The U.S. dollar was C$1.3639.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 91.59 points, or 0.59 percent, at 15,629.47.
The Dow Jones Industrial Average was up 85.33 points, or 0.41 percent, to 20,981.94, the S&P 500 gained 11.42 points, or 0.48 percent, to 2,402.32 and the Nasdaq Composite added 28.44 points, or 0.46 percent, to 6,149.67. J
Winnipeg ICE Futures Canada dollars per tonne
Canola Jul 2017 523.30 -0.60 -0.11%
Canola Nov 2017 504.50 +0.30 +0.06%
Canola Jan 2018 509.70 +0.20 +0.04%
Canola May 2018 516.40 unch 0.00%
Milling Wheat Jul 2017 237.00 -1.00 -0.42%
Milling Wheat Oct 2017 238.00 -1.00 -0.42%
Milling Wheat Dec 2017 241.00 -1.00 -0.41%
Durum Wheat Jul 2017 274.00 +1.00 +0.37%
Durum Wheat Oct 2017 269.00 +2.00 +0.75%
Durum Wheat Dec 2017 269.00 +2.00 +0.75%
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 965.25 +1.75 +0.18%
Soybeans Aug 2017 966.50 +1.25 +0.13%
Soybeans Sep 2017 962.75 +1.25 +0.13%
Soybeans Nov 2017 960.75 +0.75 +0.08%
Soybeans Jan 2018 968.25 +1.00 +0.10%
Soybeans Mar 2018 972.00 +0.75 +0.08%
Soybean Meal Jul 2017 312.50 -1.00 -0.32%
Soybean Meal Aug 2017 313.30 -0.70 -0.22%
Soybean Meal Sep 2017 313.90 -0.80 -0.25%
Soybean Oil Jul 2017 33.02 +0.18 +0.55%
Soybean Oil Aug 2017 33.11 +0.17 +0.52%
Soybean Oil Sep 2017 33.20 +0.16 +0.48%
Corn Jul 2017 367.75 -3.50 -0.94%
Corn Sep 2017 375.50 -3.25 -0.86%
Corn Dec 2017 385.25 -3.50 -0.90%
Corn Mar 2018 394.75 -3.50 -0.88%
Oats Jul 2017 230.25 -9.75 -4.06%
Oats Sep 2017 221.00 -7.25 -3.18%
Oats Dec 2017 220.00 -7.00 -3.08%
Oats Mar 2018 221.75 unch 0.00%
Oats May 2018 221.75 -6.75 -2.95%
Wheat Jul 2017 423.25 -10.00 -2.31%
Wheat Sep 2017 438.00 -9.00 -2.01%
Wheat Dec 2017 458.75 -8.25 -1.77%
Wheat Mar 2018 477.50 -6.75 -1.39%
Wheat May 2018 489.00 -6.75 -1.36%
Minneapolis
Spring Wheat Jul 2017 540.00 -6.75 -1.23%
Spring Wheat Sep 2017 547.25 -6.75 -1.22%
Spring Wheat Dec 2017 556.25 -6.00 -1.07%
Spring Wheat Mar 2018 565.25 -4.50 -0.79%
Spring Wheat May 2018 570.25 -8.50 -1.47%
Kansas City
Hard Red Wheat Jul 2017 428.50 -10.75 -2.45%
Hard Red Wheat Sep 2017 445.50 -10.50 -2.30%
Hard Red Wheat Dec 2017 469.75 -9.00 -1.88%
Hard Red Wheat Mar 2018 484.75 -8.75 -1.77%
Hard Red Wheat May 2018 495.75 -8.50 -1.69%
Chicago livestock futures in US¢/pound (rounded to two decimal places)
Live Cattle (P) Jun 2017 122.45 -3.17 -2.52%
Live Cattle (P) Aug 2017 118.80 -3.40 -2.78%
Live Cattle (P) Oct 2017 115.65 -2.90 -2.45%
Feeder Cattle (P) May 2017 142.52 -2.06 -1.42%
Feeder Cattle (P) Aug 2017 149.28 -2.55 -1.68%
Feeder Cattle (P) Sep 2017 149.15 -2.77 -1.82%
Lean Hogs (P) Jun 2017 77.25 -0.65 -0.83%
Lean Hogs (P) Jul 2017 78.35 -0.17 -0.22%
Lean Hogs (P) Aug 2017 77.85 unch 0.00%
