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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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 2014Â Â Â Â Â Â Â Â 467.90Â Â Â Â Â Â Â Â +2.40Â Â Â Â Â Â Â Â +0.52%
Canola Jul 2014Â Â Â Â Â Â Â Â 476.90Â Â Â Â Â Â Â Â +2.30Â Â Â Â Â Â Â Â +0.48%
Canola Nov 2014Â Â Â Â Â Â Â Â 492.60Â Â Â Â Â Â Â Â +2.10Â Â Â Â Â Â Â Â +0.43%
Canola Jan 2015Â Â Â Â Â Â Â Â 499.50Â Â Â Â Â Â Â Â +2.10Â Â Â Â Â Â Â Â +0.42%
Canola Mar 2015Â Â Â Â Â Â Â Â 506.00Â Â Â Â Â Â Â Â +1.80Â Â Â Â Â Â Â Â +0.36%
Milling Wheat May 2014Â Â Â Â Â Â Â Â 227.00Â Â Â Â Â Â Â Â +7.00Â Â Â Â Â Â Â Â +3.18%
Milling Wheat Jul 2014Â Â Â Â Â Â Â Â 224.00Â Â Â Â Â Â Â Â +7.00Â Â Â Â Â Â Â Â +3.23%
Milling Wheat Oct 2014Â Â Â Â Â Â Â Â 225.00Â Â Â Â Â Â Â Â +7.00Â Â Â Â Â Â Â Â +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 2014Â Â Â Â Â Â Â Â 1431.25Â Â Â Â Â Â Â Â +13Â Â Â Â Â Â Â Â +0.92%
Soybeans Jul 2014Â Â Â Â Â Â Â Â 1410.75Â Â Â Â Â Â Â Â +15Â Â Â Â Â Â Â Â +1.07%
Soybeans Aug 2014Â Â Â Â Â Â Â Â 1359Â Â Â Â Â Â Â Â +10.75Â Â Â Â Â Â Â Â +0.80%
Soybeans Sep 2014Â Â Â Â Â Â Â Â 1255.5Â Â Â Â Â Â Â Â +9Â Â Â Â Â Â Â Â +0.72%
Soybeans Nov 2014Â Â Â Â Â Â Â Â 1191Â Â Â Â Â Â Â Â +6.5Â Â Â Â Â Â Â Â +0.55%
Soybeans Jan 2015Â Â Â Â Â Â Â Â 1195.5Â Â Â Â Â Â Â Â +6.5Â Â Â Â Â Â Â Â +0.55%
Soybean Meal May 2014Â Â Â Â Â Â Â Â 462Â Â Â Â Â Â Â Â +6.2Â Â Â Â Â Â Â Â +1.36%
Soybean Meal Jul 2014Â Â Â Â Â Â Â Â 447.7Â Â Â Â Â Â Â Â +5.8Â Â Â Â Â Â Â Â +1.31%
Soybean Meal Aug 2014Â Â Â Â Â Â Â Â 425.7Â Â Â Â Â Â Â Â +4.4Â Â Â Â Â Â Â Â +1.04%
Soybean Oil May 2014Â Â Â Â Â Â Â Â 42.1Â Â Â Â Â Â Â Â -0.17Â Â Â Â Â Â Â Â -0.40%
Soybean Oil Jul 2014Â Â Â Â Â Â Â Â 42.27Â Â Â Â Â Â Â Â -0.17Â Â Â Â Â Â Â Â -0.40%
Soybean Oil Aug 2014Â Â Â Â Â Â Â Â 42.12Â Â Â Â Â Â Â Â -0.15Â Â Â Â Â Â Â Â -0.35%
Corn May 2014Â Â Â Â Â Â Â Â 487.75Â Â Â Â Â Â Â Â +1.5Â Â Â Â Â Â Â Â +0.31%
Corn Jul 2014Â Â Â Â Â Â Â Â 492.75Â Â Â Â Â Â Â Â +1.75Â Â Â Â Â Â Â Â +0.36%
Corn Sep 2014Â Â Â Â Â Â Â Â 490Â Â Â Â Â Â Â Â +1.25Â Â Â Â Â Â Â Â +0.26%
Corn Dec 2014Â Â Â Â Â Â Â Â 488.75Â Â Â Â Â Â Â Â +1Â Â Â Â Â Â Â Â +0.21%
Corn Mar 2015Â Â Â Â Â Â Â Â 496.75Â Â Â Â Â Â Â Â +1Â Â Â Â Â Â Â Â +0.20%
Oats May 2014Â Â Â Â Â Â Â Â 430Â Â Â Â Â Â Â Â -11.25Â Â Â Â Â Â Â Â -2.55%
Oats Jul 2014Â Â Â Â Â Â Â Â 382Â Â Â Â Â Â Â Â -1.75Â Â Â Â Â Â Â Â -0.46%
Oats Sep 2014Â Â Â Â Â Â Â Â 337.25Â Â Â Â Â Â Â Â -2Â Â Â Â Â Â Â Â -0.59%
Oats Dec 2014Â Â Â Â Â Â Â Â 326.5Â Â Â Â Â Â Â Â -2Â Â Â Â Â Â Â Â -0.61%
Oats Mar 2015Â Â Â Â Â Â Â Â 322.25Â Â Â Â Â Â Â Â -2Â Â Â Â Â Â Â Â -0.62%
Wheat May 2014Â Â Â Â Â Â Â Â 715.75Â Â Â Â Â Â Â Â +23.25Â Â Â Â Â Â Â Â +3.36%
Wheat Jul 2014Â Â Â Â Â Â Â Â 717Â Â Â Â Â Â Â Â +21.5Â Â Â Â Â Â Â Â +3.09%
Wheat Sep 2014Â Â Â Â Â Â Â Â 723.75Â Â Â Â Â Â Â Â +21Â Â Â Â Â Â Â Â +2.99%
Wheat Dec 2014Â Â Â Â Â Â Â Â 732.5Â Â Â Â Â Â Â Â +20.5Â Â Â Â Â Â Â Â +2.88%
Wheat Mar 2015Â Â Â Â Â Â Â Â 737.25Â Â Â Â Â Â Â Â +20Â Â Â Â Â Â Â Â +2.79%
Minneapolis
Spring Wheat May 2014Â Â Â Â Â Â Â Â 761Â Â Â Â Â Â Â Â +19.5Â Â Â Â Â Â Â Â +2.63%
Spring Wheat Jul 2014Â Â Â Â Â Â Â Â 753.75Â Â Â Â Â Â Â Â +19.25Â Â Â Â Â Â Â Â +2.62%
Spring Wheat Sep 2014Â Â Â Â Â Â Â Â 752.5Â Â Â Â Â Â Â Â +20Â Â Â Â Â Â Â Â +2.73%
Spring Wheat Dec 2014Â Â Â Â Â Â Â Â 761Â Â Â Â Â Â Â Â +20.5Â Â Â Â Â Â Â Â +2.77%
Spring Wheat Mar 2015Â Â Â Â Â Â Â Â 766.25Â Â Â Â Â Â Â Â +21.25Â Â Â Â Â Â Â Â +2.85%
Kansas City
KC HRW Wheat May 2014Â Â Â Â Â Â Â Â 788.25Â Â Â Â Â Â Â Â +25Â Â Â Â Â Â Â Â +3.28%
KC HRW Wheat Jul 2014Â Â Â Â Â Â Â Â 783Â Â Â Â Â Â Â Â +23.5Â Â Â Â Â Â Â Â +3.09%
KC HRW Wheat Sep 2014Â Â Â Â Â Â Â Â 783.5Â Â Â Â Â Â Â Â +21.75Â Â Â Â Â Â Â Â +2.86%
KC HRW Wheat Dec 2014Â Â Â Â Â Â Â Â 791.5Â Â Â Â Â Â Â Â +21Â Â Â Â Â Â Â Â +2.73%
KC HRW Wheat Mar 2015Â Â Â Â Â Â Â Â 792Â Â Â Â Â Â Â Â +19.75Â Â Â Â Â Â Â Â +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.
