• The United States, Israel and Iran agreed to a two-week ceasefire shortly before a deadline imposed by U.S. President Donald Trump Tuesday evening, although details of the terms remain unclear.
• Crude oil fell sharply on the news, with Brent crude down 13 per cent at US$95 at midday.
• Chicago soyoil, European rapeseed and Malaysian palm oil futures were all lower, contributing to the softer tone in canola.
• Chart-based speculative selling added to the softer tone in canola as the May contract broke below the lower end of its nearby trading range.
• However, historically wide crush margins of about C$350 per tonne above the nearby futures likely had end users buying on the way down.
• An estimated 64,700 canola contracts traded as of 10:21 CDT.

Prices in Canadian dollars per metric tonne at 10:21 CDT:

Canola            May   706.00    dn  13.40

                  Jul   719.40    dn  13.40

                  Nov   716.40    dn  11.20

                  Jan   723.30    dn  10.90

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     The loonie was at US$0.7213 or US$1=C$1.3864 as of 8:38 a.m. CDT, compared to Tuesday’s close at US$0.7191 or US$1=C$1.3907. The United States Dollar Index lost 1.20 points at 98.65.

     The U.S., Israel and Iran agreed to a two-week ceasefire on Tuesday, hours before the U.S. were to launch a large-scale attack on Iran. One of the conditions of the Pakistan-brokered deal was the re-opening of the Strait of Hormuz during that period. After the announcement, crude oil prices fell dramatically.

     April West Texas Intermediate lost US$20.41 at US$92.54 per barrel. May Brent crude oil shed US$18.14 at US$91.13/barrel.

     The TSX/S&P Composite Index reacted strongly to the ceasefire, gaining 490.11 points at 33,727.63.

     Gold reacted in kind, climbing US$120.30 per ounce at US$4,805.00.

The post Canadian Dollar and Business Outlook: Crude oil falls, TSX rises after ceasefire announcement appeared first on Manitoba Co-operator.

     – The United States, Israel and Iran agreed to a two-week ceasefire on Tuesday, hours before the U.S. were to launch a large-scale attack on Iran. One of the terms of the 10-point plan brokered by Pakistan was Iran facilitating safe passage through the Strait of Hormuz. As a result, crude oil prices fell by US$18 to US$21 per barrel since the announcement. However, Israel continued to attack Lebanon in its war against Hezbollah and the fate of Iran’s missile and nuclear programs remain unclear.

     – The Artemis II spacecraft, which is carrying Canadian astronaut Jeremy Hansen, is pointed towards Earth and its crew is preparing to land in the Pacific Ocean off the coast of San Diego, Calif. on Friday at around 7 p.m. CDT, NASA said on Tuesday. A NASA spokesperson added that the crew is packing all of the science equipment, cameras, tablets and reference material before re-entering Earth’s atmosphere. The mission broke the record for the farthest distance humans have flown from Earth at 406,771 kilometres, beating the previous record of 400,171 km set by the Apollo 13 astronauts in 1970. The Artemis crew also had a call with astronauts on the International Space Station, which is 400 km above Earth.

     – John Deere settled a class-action lawsuit on Tuesday, establishing a US$99 million settlement fund for farmers over costs and access to repairs. John Deere also agreed to make “the digital tools required for the maintenance, diagnosis, and repair” of large agricultural equipment, including tractors, combines, and sugarcane harvesters for 10 years. The settlement fund covers eligible plaintiffs who paid Deere’s authorized dealers for repairs to large agricultural equipment from January 2018. The company is also facing a lawsuit from the U.S. Federal Trade Commission, accused of forcing farmers to use its authorized dealer network and driving up their costs for parts and repairs.

The post Global Markets: U.S., Iran agree to two-week ceasefire appeared first on Manitoba Co-operator.

• The United States, Israel and Iran agreed to a two-week ceasefire shortly before a deadline imposed by U.S. President Donald Trump Tuesday evening, although details of the terms remain unclear.
• Crude oil fell sharply on the news, with Brent crude down 17 per cent at US$90.55 Wednesday morning.
• Chicago soyoil, European rapeseed and Malaysian palm oil futures were all lower, contributing to the softer tone in canola.
• Chart-based speculative selling added to the softer tone in canola, although historically wide crush margins likely had end users buying on the way down.

• About 35,100 canola contracts had traded as of 8:38 CDT.

     Prices in Canadian dollars per metric tonne at 8:38 CDT:

Canola            May   709.20    dn 10.20

                  Jul   722.20    dn 10.60

                  Nov   718.70    dn  8.90

                  Jan   725.50    dn  8.70

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Feed barley in Lethbridge was selling for C$295 to C$300 per tonne for May and June delivery, up C$5 from two weeks earlier, said Brandon Motz, owner and manager of CorNine Commodities in Lacombe, Alta. He also heard offers of up to C$310/tonne. Meanwhile, feed wheat was selling at C$305 to C$310/tonne.

“There still seems to be some very aggressive bids (for feed barley) from the line companies,” Motz said. “Actual feedlot demand is below average this time of year, but there are a lot of moving factors.”

• For daily market updates, visit the Western Producer Markets Desk

As barley and wheat move through the markets, rising corn prices have weakened demand for the crop.

“Corn is trickling into the market. There is some feeding corn. Corn has always kind of been in the background, but there’s not a lot of volume. Corn prices have rallied up too. So they’ve stayed out of reach,” Motz said.

Rising fuel prices, brought on by the war in Iran, have tightened margins for grain companies and railways, resulting in surcharges and higher freight rates. Motz added that they are affecting growers’ bottom lines as well.

“That’s quite a jump if you didn’t have your spring needs already booked,” he said. “It’s definitely something to be watched and unfortunately not a lot can be done to manage that risk. The bid offer spread has to be adjusted to compensate for fuel prices.”

Where grain prices could go is hard to determine, but Motz believes there will be little movement in the near term.

“It’s safe to assume that prices will remain in this area for the next week at least. There’s nothing to suggest that anything should change,” he said. “But at the same time, this market has been one tweet way from dramatic correction on either side … We need some global shifts to take place before any of the markets come off their highs at this point.”

Prairie Ag Hotwire reported that delivered feed barley prices in Alberta ranged from C$5.01 to C$6.75 per bushel on April 6, steady from the week before. In Saskatchewan, they were also steady, ranging from C$5.12 to C$5.45/bu. In Manitoba, prices were up 25 cents at C$4.77 to C$5/bu.

Feed wheat prices in Alberta were from C$6.18 to C$8.38/bu., down three cents. Manitoba’s feed wheat price was C$6.45, up 13 cents, while Saskatchewan’s was steady at C$7.30/bu.

The post Feed Grain Weekly: Demand rises despite war uncertainty appeared first on Manitoba Co-operator.

     The loonie closed at US$0.7191 or US$1=C$1.3907, compared to US$0.7186 or C$1=C$1.3916 on Monday. The United States Dollar Index dipped 0.11 of a point at 99.87.

     Crude oil prices were higher earlier in the day until the U.S. announced it was reviewing a proposal by Pakistan to extend Iran’s deadline to re-open the Strait of Hormuz. Trump said on social media this morning that Iran’s “civilization will die tonight” if a deal wasn’t reached by today.

     April West Texas Intermediate shed US$0.94 per barrel at US$111.47. May Brent crude oil lost US$3.50/barrel at US$106.23.

     The TSX/S&P Composite Index advanced 55.55 points at 33,237.52.

     Gold rose US$48.30 per ounce at US$4,733.00.

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• The U.S. Department of Agriculture will release its latest supply/demand estimates on Thursday.
• Ideas that rising fertilizer costs will encourage more soybean plantings in the United States this spring put some pressure on values.
• Crude oil was mixed, as energy markets watched for any developments on ceasefire negotiations in the Middle East.

CORN futures were weaker Tuesday, also pressured by ample old crop supplies.

• The U.S. corn crop was three per cent seeded as of this past Sunday, reported the USDA. That was one point ahead of the average for this time of year.
• The need to keep some premiums in the market to encourage planting this spring was supportive.

WHEAT futures were mixed, as poor condition ratings were countered by forecasts calling for beneficial moisture.

• The U.S. winter wheat crop was rated 35 per cent good to excellent in the first national report from the USDA for the year. That compares with 48 per cent at the same point a year ago.
• Spring wheat seeding in the U.S. came in at two per cent complete.

• Forecasts calling for beneficial rain in some dry areas of the U.S. Plains over the next 10 days were bearish.

The post CBOT review: Large supplies weigh on soybeans/corn appeared first on Manitoba Co-operator.

• United States President Donald Trump threatened on social media that “a whole civilization will die tonight, never to be brought back again.” Fresh U.S./Israeli attacks on Kharg Island added to the general volatility in energy markets.
• Grains and oilseeds failed to follow crude oil higher, with position-evening amid the general uncertainty a feature, according to an analyst. Chicago soyoil and Malaysian palm oil futures were lower, while European rapeseed managed to post small gains.
• May canola fell below its 20-day moving average, which was bearish from a technical standpoint.
• Wide crush margins remained supportive, with canola seed attractively priced relative to its product values.
• There were 58,833 contracts traded on Monday, which compares with Monday when 35,331 contracts changed hands. Spreading accounted for 32,602 of the contracts traded.

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• United States President Donald Trump threatened on social media that “a whole civilization will die tonight, never to be brought back again.” Crude oil values climbed higher, with fresh U.S./Israeli attacks on Kharg Island adding to strength in energy markets.
• However, the grains and oilseeds were not following oil higher on Tuesday, with position-evening amid the general uncertainty a feature, according to an analyst. Chicago soyoil and Malaysian palm oil futures were lower, while European rapeseed was narrowly mixed.
• May canola fell below its 20-day moving average, which was bearish from a technical standpoint.
• Wide crush margins remained supportive, with canola seed attractively priced relative to its product values.

• An estimated 34,000 canola contracts traded as of 10:48 CDT.

Prices in Canadian dollars per metric tonne at 10:48 CDT:

Canola            May   719.60    dn  7.00

                  Jul   732.80    dn  6.70

                  Nov   727.60    dn  5.10

                  Jan   734.00    dn  4.90

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The post ICE canola down at midday Tuesday appeared first on Manitoba Co-operator.

Genetic quality appeared to influence the market on a larger scale for feeders under 700 pounds. Medium to larger frame preconditioned calves appeared to trade steady to $10 higher on average but “run of the mill” bawlers were steady to $10 lower. If feeders had more risk on feed efficiencies or health, the market priced these cattle with appropriate discounts.

• For more livestock market content, visit the Western Producer Markets Desk

The TEAM market report included a group of 305 black steers with a mean weight of 1,000 pounds on barley, silage and supplement diet with full herd health records including implants sold for $455/cwt fob farm near Allan, Sask.

Northwest of Saskatoon, a pen-sized group of medium to larger frame mixed steers averaging 910 pounds, carrying various butter levels, on barley and silage diet with full processing records traded for $470 fob farm. South of Edmonton, a half-pen of larger frame Angus cross heifers on rolled barley and barley silage diet, with full processing and implants, averaging 875 pounds traded for $464 fob farm.

At the Ste. Rose auction, a smaller package of red mixed steers averaging 826 pounds traded for $507. At the same sale, a 10-pack of red and black heifers evaluated at 826 pounds sold for $459/cwt. In Ponoka, a group of eight lower flesh, 810-pound Simmental cross steers on barley and silage diet for two weeks, with full processing records traded for $525/cwt.

The Vermilion Livestock Exchange reported that five tan steers scaled at 723 pounds traded for $573/cwt. Fourteen tan heifers averaging 737 pounds dropped the gavel at $515/cwt.

The VJV report from Rimbey included a group of 14 mixed steer calves weighing 611 pound coming off a diet of cereal silage, chopped hay and oats, with full processing data were last bid at $655/cwt. In central Alberta, a producer reported at group of mixed weaned heifers averaging 620 pounds with full preconditioning records on silage and limited rolled barley exited the ring at $620/cwt.

• More livestock coverage: Beef industry warns research cuts will set sector back for decades

At the Vermilion sale, a six-pack of 550 pound tans steers traded for $734/cwt and 11 red-white-face 500 pound steers sold for $768/cwt.

At the Ste. Rose, Man. auction, a pair of red and black steers weighing 432 pounds silenced the crowd at $842/cwt. The volume of calves under 550 pounds was limited across the Prairies, which made the market hard to define.

Alberta packers were buying fed cattle on a live basis at $325/cwt fob feedlot in the Lethbridge area. The breakeven price on these finished cattle is around $355/cwt. This is the fifth consecutive month of negative margins for Alberta feedlots.

The post Klassen: Negative margins weigh on Western feeder cattle market appeared first on Manitoba Co-operator.