U.S. wheat futures rallied 2.7 percent on Wednesday, bouncing back from near five-year lows on disappointing results from a crop tour and a crumbling U.S. dollar.
Oilseeds did not do so well, with weakness in soy oil and soybeans pressuring canola lower. A stronger loonie also weighed on canola.
A smaller than expected stocks number in the Satistics Canada March 31 stocks report did little to support canola.
StatsCan pegged canola stocks at seven million tonnes, down 19 percent, but short of average trade estimate of 7.4 million.
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Soybeans weakened on a round of technical selling after prices hit a two-month high early in the session.
The wheat gains, the most since April 1, spilled into the corn market, which also benefited from slow farmer selling on the cash market, Reuters reported.
Scouts on the Wheat Quality Council’s annual tour of Kansas on Wednesday found prospects for the crop in the western portion of the state worse than those of last year’s drought-hit crop, Reuters reported.
Northern Kansas yields were projected at a 14-year low of 34.3 bushels per acre on Monday.
“The first stages of the U.S. crop tour (are) finding yields lower than average in some regions, which is a disappointment,” said Frank Rijkers, an agrifood economist at ABN AMRO Bank.
The U.S. dollar dropped making U.S. wheat less expensive on the world market and provided cover for speculators to cash in short positions they were holding in both corn and wheat.
“You have a market where you have a massive oversold position,” said Mark Schultz, chief analyst at Northstar Commodity Investment Co. “The funds are short this market in a major, major way.”
“Corn is being supported by some bargain buying after prices touched seven-month lows on Tuesday, while there is also hope that new blending targets for renewable fuels will be agreed by the U.S. authorities,” Rijkers of ABN AMRO said.
The U.S. Environmental Protection Agency has sent blending targets for the country’s renewable fuels program to the White House for review ahead of a June 1 deadline.
Light crude oil nearby futures in New York were up 53 cents to US$60.93 per barrel.
The Canadian dollar at noon was US83.27 cents, up from 83.06 cents the previous trading day. The U.S. dollar at noon was C$1.2009.
Winnipeg ICE Futures Canada dollars per tonne
Canola May 2015 464.50 -7.80 -1.65%
Canola Jul 2015 455.40 -3.40 -0.74%
Canola Nov 2015 446.90 -3.50 -0.78%
Canola Jan 2016 447.60 -3.60 -0.80%
Canola Mar 2016 447.50 -3.50 -0.78%
Milling Wheat May 2015 198.00 +5.00 +2.59%
Milling Wheat Jul 2015 201.00 +5.00 +2.55%
Milling Wheat Oct 2015 207.00 +5.00 +2.48%
Durum Wheat May 2015 313.00 unch 0.00%
Durum Wheat Jul 2015 303.00 unch 0.00%
Durum Wheat Oct 2015 308.00 unch 0.00%
Barley May 2015 200.00 unch 0.00%
Barley Jul 2015 202.00 unch 0.00%
Barley Oct 2015 187.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans May 2015 990.5 -3 -0.30%
Soybeans Jul 2015 982.5 -2.25 -0.23%
Soybeans Aug 2015 975.75 -1.25 -0.13%
Soybeans Sep 2015 962.25 unch 0.00%
Soybeans Nov 2015 956 +1.5 +0.16%
Soybeans Jan 2016 962.25 +1.5 +0.16%
Soybean Meal May 2015 317.6 -0.5 -0.16%
Soybean Meal Jul 2015 314.2 -1 -0.32%
Soybean Meal Aug 2015 311.9 -0.7 -0.22%
Soybean Oil May 2015 32.75 -0.13 -0.40%
Soybean Oil Jul 2015 32.92 -0.13 -0.39%
Soybean Oil Aug 2015 32.96 -0.1 -0.30%
Corn May 2015 366.5 +5.25 +1.45%
Corn Jul 2015 366.75 +4 +1.10%
Corn Sep 2015 372.75 +3.75 +1.02%
Corn Dec 2015 382.5 +3.5 +0.92%
Corn Mar 2016 394 +4 +1.03%
Oats May 2015 237.5 +10.25 +4.51%
Oats Jul 2015 241.25 +11.25 +4.89%
Oats Sep 2015 248 +11.75 +4.97%
Oats Dec 2015 254.5 +10 +4.09%
Oats Mar 2016 263.25 +9.25 +3.64%
Wheat May 2015 475.75 +11.75 +2.53%
Wheat Jul 2015 479.25 +12.75 +2.73%
Wheat Sep 2015 487.25 +12.5 +2.63%
Wheat Dec 2015 504 +12.75 +2.60%
Wheat Mar 2016 520.25 +12 +2.36%
Minneapolis
Spring Wheat May 2015 527 +13.75 +2.68%
Spring Wheat Jul 2015 538.75 +14 +2.67%
Spring Wheat Sep 2015 549.75 +13.75 +2.57%
Spring Wheat Dec 2015 563 +13.25 +2.41%
Spring Wheat Mar 2016 577.75 +12 +2.12%
Kansas City
Hard Red Wheat May 2015 501.25 +15 +3.08%
Hard Red Wheat Jul 2015 503.5 +13.25 +2.70%
Hard Red Wheat Sep 2015 512.75 +12.75 +2.55%
Hard Red Wheat Dec 2015 531.75 +12.25 +2.36%
Hard Red Wheat Mar 2016 545 +12 +2.25%
