For the week of Feb.1 to 5, soybean, corn and wheat prices fell in the wake of lower prices in Chicago and weaker basis levels in Ontario.
Buoyed by a weaker U.S. dollar and an almost $2 rally in crude oil on Feb. 3, the Canadian dollar gained 99 basis points to close higher than $0.72 US. As a result, the average Chatham-Kent old crop soybean basis fell 14 cents to $2.79.
In Chicago, soybean futures declined on commercial selling and forecasts for rain in Argentina. Later in the week, bearish weekly export data from the USDA pressured each of the corn, soybean and wheat markets. The March soybean contract finished the week at $8.675, down approximately 15 cents from the Jan. 29 closing price of 8.8225. The closing Chicago prices ranged from $8.675 to $8.8625. The average, daily CK old crop basis ranged from $2.70 to $2.93. The range for the previous week was $2.91 to $3.06.
For corn, the March contract finished the week at 3.6575, down approximately six cents from the previous Friday. It was the low price for the week. The high came on Tuesday at $3.725. The average CK basis started the week at $1.11 before falling to $1.03.
As for wheat, the March contract closed on Friday at $4.6675, down 12.5 cents from the previous Friday. It was the low price for the week while the high was $4.80.
The Canadian dollar lost some ground on Friday (compared with Thursday), when the Bank of Canada Exchange rate at noon was $1.3876 US. But the Loonie was stronger over the course of the week as the previous Friday’s rate was $1.4080 US.