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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However, that was still the second largest amount for that date ever.
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 2015Â Â Â Â Â Â Â Â 464.50Â Â Â Â Â Â Â Â -7.80Â Â Â Â Â Â Â Â -1.65%
Canola Jul 2015Â Â Â Â Â Â Â Â 455.40Â Â Â Â Â Â Â Â -3.40Â Â Â Â Â Â Â Â -0.74%
Canola Nov 2015Â Â Â Â Â Â Â Â 446.90Â Â Â Â Â Â Â Â -3.50Â Â Â Â Â Â Â Â -0.78%
Canola Jan 2016Â Â Â Â Â Â Â Â 447.60Â Â Â Â Â Â Â Â -3.60Â Â Â Â Â Â Â Â -0.80%
Canola Mar 2016Â Â Â Â Â Â Â Â 447.50Â Â Â Â Â Â Â Â -3.50Â Â Â Â Â Â Â Â -0.78%
Milling Wheat May 2015Â Â Â Â Â Â Â Â 198.00Â Â Â Â Â Â Â Â +5.00Â Â Â Â Â Â Â Â +2.59%
Milling Wheat Jul 2015Â Â Â Â Â Â Â Â 201.00Â Â Â Â Â Â Â Â +5.00Â Â Â Â Â Â Â Â +2.55%
Milling Wheat Oct 2015Â Â Â Â Â Â Â Â 207.00Â Â Â Â Â Â Â Â +5.00Â Â Â Â Â Â Â Â +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 2015Â Â Â Â Â Â Â Â 990.5Â Â Â Â Â Â Â Â -3Â Â Â Â Â Â Â Â -0.30%
Soybeans Jul 2015Â Â Â Â Â Â Â Â 982.5Â Â Â Â Â Â Â Â -2.25Â Â Â Â Â Â Â Â -0.23%
Soybeans Aug 2015Â Â Â Â Â Â Â Â 975.75Â Â Â Â Â Â Â Â -1.25Â Â Â Â Â Â Â Â -0.13%
Soybeans Sep 2015        962.25        unch        0.00%
Soybeans Nov 2015Â Â Â Â Â Â Â Â 956Â Â Â Â Â Â Â Â +1.5Â Â Â Â Â Â Â Â +0.16%
Soybeans Jan 2016Â Â Â Â Â Â Â Â 962.25Â Â Â Â Â Â Â Â +1.5Â Â Â Â Â Â Â Â +0.16%
Soybean Meal May 2015Â Â Â Â Â Â Â Â 317.6Â Â Â Â Â Â Â Â -0.5Â Â Â Â Â Â Â Â -0.16%
Soybean Meal Jul 2015Â Â Â Â Â Â Â Â 314.2Â Â Â Â Â Â Â Â -1Â Â Â Â Â Â Â Â -0.32%
Soybean Meal Aug 2015Â Â Â Â Â Â Â Â 311.9Â Â Â Â Â Â Â Â -0.7Â Â Â Â Â Â Â Â -0.22%
Soybean Oil May 2015Â Â Â Â Â Â Â Â 32.75Â Â Â Â Â Â Â Â -0.13Â Â Â Â Â Â Â Â -0.40%
Soybean Oil Jul 2015Â Â Â Â Â Â Â Â 32.92Â Â Â Â Â Â Â Â -0.13Â Â Â Â Â Â Â Â -0.39%
Soybean Oil Aug 2015Â Â Â Â Â Â Â Â 32.96Â Â Â Â Â Â Â Â -0.1Â Â Â Â Â Â Â Â -0.30%
Corn May 2015Â Â Â Â Â Â Â Â 366.5Â Â Â Â Â Â Â Â +5.25Â Â Â Â Â Â Â Â +1.45%
Corn Jul 2015Â Â Â Â Â Â Â Â 366.75Â Â Â Â Â Â Â Â +4Â Â Â Â Â Â Â Â +1.10%
Corn Sep 2015Â Â Â Â Â Â Â Â 372.75Â Â Â Â Â Â Â Â +3.75Â Â Â Â Â Â Â Â +1.02%
Corn Dec 2015Â Â Â Â Â Â Â Â 382.5Â Â Â Â Â Â Â Â +3.5Â Â Â Â Â Â Â Â +0.92%
Corn Mar 2016Â Â Â Â Â Â Â Â 394Â Â Â Â Â Â Â Â +4Â Â Â Â Â Â Â Â +1.03%
Oats May 2015Â Â Â Â Â Â Â Â 237.5Â Â Â Â Â Â Â Â +10.25Â Â Â Â Â Â Â Â +4.51%
Oats Jul 2015Â Â Â Â Â Â Â Â 241.25Â Â Â Â Â Â Â Â +11.25Â Â Â Â Â Â Â Â +4.89%
Oats Sep 2015Â Â Â Â Â Â Â Â 248Â Â Â Â Â Â Â Â +11.75Â Â Â Â Â Â Â Â +4.97%
Oats Dec 2015Â Â Â Â Â Â Â Â 254.5Â Â Â Â Â Â Â Â +10Â Â Â Â Â Â Â Â +4.09%
Oats Mar 2016Â Â Â Â Â Â Â Â 263.25Â Â Â Â Â Â Â Â +9.25Â Â Â Â Â Â Â Â +3.64%
Wheat May 2015Â Â Â Â Â Â Â Â 475.75Â Â Â Â Â Â Â Â +11.75Â Â Â Â Â Â Â Â +2.53%
Wheat Jul 2015Â Â Â Â Â Â Â Â 479.25Â Â Â Â Â Â Â Â +12.75Â Â Â Â Â Â Â Â +2.73%
Wheat Sep 2015Â Â Â Â Â Â Â Â 487.25Â Â Â Â Â Â Â Â +12.5Â Â Â Â Â Â Â Â +2.63%
Wheat Dec 2015Â Â Â Â Â Â Â Â 504Â Â Â Â Â Â Â Â +12.75Â Â Â Â Â Â Â Â +2.60%
Wheat Mar 2016Â Â Â Â Â Â Â Â 520.25Â Â Â Â Â Â Â Â +12Â Â Â Â Â Â Â Â +2.36%
Minneapolis
Spring Wheat May 2015Â Â Â Â Â Â Â Â 527Â Â Â Â Â Â Â Â +13.75Â Â Â Â Â Â Â Â +2.68%
Spring Wheat Jul 2015Â Â Â Â Â Â Â Â 538.75Â Â Â Â Â Â Â Â +14Â Â Â Â Â Â Â Â +2.67%
Spring Wheat Sep 2015Â Â Â Â Â Â Â Â 549.75Â Â Â Â Â Â Â Â +13.75Â Â Â Â Â Â Â Â +2.57%
Spring Wheat Dec 2015Â Â Â Â Â Â Â Â 563Â Â Â Â Â Â Â Â +13.25Â Â Â Â Â Â Â Â +2.41%
Spring Wheat Mar 2016Â Â Â Â Â Â Â Â 577.75Â Â Â Â Â Â Â Â +12Â Â Â Â Â Â Â Â +2.12%
Kansas City
Hard Red Wheat May 2015Â Â Â Â Â Â Â Â 501.25Â Â Â Â Â Â Â Â +15Â Â Â Â Â Â Â Â +3.08%
Hard Red Wheat Jul 2015Â Â Â Â Â Â Â Â 503.5Â Â Â Â Â Â Â Â +13.25Â Â Â Â Â Â Â Â +2.70%
Hard Red Wheat Sep 2015Â Â Â Â Â Â Â Â 512.75Â Â Â Â Â Â Â Â +12.75Â Â Â Â Â Â Â Â +2.55%
Hard Red Wheat Dec 2015Â Â Â Â Â Â Â Â 531.75Â Â Â Â Â Â Â Â +12.25Â Â Â Â Â Â Â Â +2.36%
Hard Red Wheat Mar 2016Â Â Â Â Â Â Â Â 545Â Â Â Â Â Â Â Â +12Â Â Â Â Â Â Â Â +2.25%
