Wheat futures soared again Wednesday and canola posted its seventh day of increases.
Dry weather in the U.S. southern plains caused traders to worry about the state of the hard red winter wheat crop. Dust storms in the area yesterday caught the media’s attention.
Chicago and Kansas wheat rose more than three percent, with Chicago hitting a 10-month high. Minneapolis spring wheat May rose 2.4 percent and new crop December rose 2.77 percent.
While the wheat futures rally shows little sign of a turn around, Reuters columnist Gavin Maguire notes a big increase in the number of July put options at around $7-$7.10 as traders take protection against any potential pull back in the price.
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U.S. grains: Corn, soybeans extend losses as Midwest weather looks crop-friendly
Chicago Board of Trade corn futures extended session losses on Tuesday, weighed down by forecasts for crop-friendly rain in U.S. grain belts this week.
Canola rose on support from rising soybeans and a 0.75 cent drop in the value of the Canadian dollar.
May canola closed at $467 per tonne, up $2.40.
CN Rail’s president today said that although rail shipments of grain are picking up, the railways wouldn’t be able to catch up with the backlog created by the huge crop and severe winter until 2015.
Soybeans rose on continued concern about tight supply. There was talk, but no confirmation, that American buyers were importing a couple of cargoes of Brazilian soybeans.
The strength in wheat and soybeans spilled over into the corn market, lifting prices there.
Winnipeg ICE Futures Canada dollars per tonne
Canola May 2014 467.90 +2.40 +0.52%
Canola Jul 2014 476.90 +2.30 +0.48%
Canola Nov 2014 492.60 +2.10 +0.43%
Canola Jan 2015 499.50 +2.10 +0.42%
Canola Mar 2015 506.00 +1.80 +0.36%
Milling Wheat May 2014 227.00 +7.00 +3.18%
Milling Wheat Jul 2014 224.00 +7.00 +3.23%
Milling Wheat Oct 2014 225.00 +7.00 +3.21%
Durum Wheat May 2014 250.00 unch 0.00%
Durum Wheat Jul 2014 250.00 unch 0.00%
Durum Wheat Oct 2014 252.00 unch 0.00%
Barley May 2014 130.50 unch 0.00%
Barley Jul 2014 128.50 unch 0.00%
Barley Oct 2014 128.50 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans May 2014 1431.25 +13 +0.92%
Soybeans Jul 2014 1410.75 +15 +1.07%
Soybeans Aug 2014 1359 +10.75 +0.80%
Soybeans Sep 2014 1255.5 +9 +0.72%
Soybeans Nov 2014 1191 +6.5 +0.55%
Soybeans Jan 2015 1195.5 +6.5 +0.55%
Soybean Meal May 2014 462 +6.2 +1.36%
Soybean Meal Jul 2014 447.7 +5.8 +1.31%
Soybean Meal Aug 2014 425.7 +4.4 +1.04%
Soybean Oil May 2014 42.1 -0.17 -0.40%
Soybean Oil Jul 2014 42.27 -0.17 -0.40%
Soybean Oil Aug 2014 42.12 -0.15 -0.35%
Corn May 2014 487.75 +1.5 +0.31%
Corn Jul 2014 492.75 +1.75 +0.36%
Corn Sep 2014 490 +1.25 +0.26%
Corn Dec 2014 488.75 +1 +0.21%
Corn Mar 2015 496.75 +1 +0.20%
Oats May 2014 430 -11.25 -2.55%
Oats Jul 2014 382 -1.75 -0.46%
Oats Sep 2014 337.25 -2 -0.59%
Oats Dec 2014 326.5 -2 -0.61%
Oats Mar 2015 322.25 -2 -0.62%
Wheat May 2014 715.75 +23.25 +3.36%
Wheat Jul 2014 717 +21.5 +3.09%
Wheat Sep 2014 723.75 +21 +2.99%
Wheat Dec 2014 732.5 +20.5 +2.88%
Wheat Mar 2015 737.25 +20 +2.79%
Minneapolis
Spring Wheat May 2014 761 +19.5 +2.63%
Spring Wheat Jul 2014 753.75 +19.25 +2.62%
Spring Wheat Sep 2014 752.5 +20 +2.73%
Spring Wheat Dec 2014 761 +20.5 +2.77%
Spring Wheat Mar 2015 766.25 +21.25 +2.85%
Kansas City
KC HRW Wheat May 2014 788.25 +25 +3.28%
KC HRW Wheat Jul 2014 783 +23.5 +3.09%
KC HRW Wheat Sep 2014 783.5 +21.75 +2.86%
KC HRW Wheat Dec 2014 791.5 +21 +2.73%
KC HRW Wheat Mar 2015 792 +19.75 +2.56%
Light crude oil nearby futures in New York rose 67 cents at $100.37 US per barrel.
The Canadian dollar at noon was 89.45 cents US, down from 90.20 cents the previous trading day. The U.S. dollar at noon was $1.1179 Cdn.
A policy statement from the U.S. Federal Reserve said it would drop the linkage between its plans to ending stimulus and the unemployment rate. It said it would instead look at a wide range of information.
The Fed also said it would drop its stimulus program by $10 billion to $55 billion a month.
In unofficial early tallies —
The Toronto Stock Exchange’s S&P/TSX composite index closed down 34.94 points, or 0.24 percent, at 14,334.04.
The Dow Jones industrial average fell 114.02 points or 0.70 percent, to end at 16,222.17.
The S&P 500 lost 11.47 points or 0.61 percent, to finish at 1,860.78.
The Nasdaq Composite dropped 25.711 points or 0.59 percent, to close at 4,307.602.
