ICE Canada canola futures rise on soy strength, weather concerns

WINNIPEG (Reuters) — ICE Canada canola futures rose on Friday for a second straight day, lifted by strength in U.S. soybeans and concerns about Canadian crop weather.

Concerns about dry conditions, and a forecast risk of frost for early September added strength to canola, a trader said.

Despite unfavourable weather in parts of the Canadian Prairies, traders and analysts expect record-large canola production this year.

Fifty-seven percent of canola in Alberta is in good to excellent condition.

November canola gained $6.70 to $506.70 per tonne.

November-January canola spread traded 868 times.

Chicago Board of Trade November soybeans rose on bargain-buying.

NYSE MATIF November rapeseed ended flat and Malaysian October palm oil rose.

The Canadian dollar was trading at $1.2570 to the U.S. dollar, or 79.55 U.S. cents at 1:50 p.m. CDT (1850 GMT).

Canada weekly canola crushings fall 9.3 percent.

U.S. corn, soybean and wheat futures firmed on Friday, but outlooks for good weather for crop development limited attempts at a rally, traders said.

All three commodities posted weekly losses.

“Ongoing pressure from large supplies and lack of a weather threat kept markets on the defensive this week,” Farm Futures analyst Bryce Knorr said in a note to clients.

Traders cited technical buying and short-covering as supportive to the grains and oilseeds on Friday.

ADVERTISMENT

CBOT November soybean futures settled up 4-3/4 cents at $9.37-3/4 a bushel, slightly below its session high.

CBOT December corn was 1-1/2 cents higher at $3.65-3/4 a bushel and September wheat futures were up two cents at $4.16 a bushel.

“Wheat prices are trying to stabilize,” consultancy Agritel said in a research note. “The current level of prices is triggering some bargain buying.”

For the week, wheat was off five percent, soybeans were down 0.7 percent and corn was down 2.6 percent.

Seasonal supply pressures from big harvests in Russia and elsewhere in the Black Sea export region along with chart-based selling momentum pushed wheat futures in Paris to new lows on Friday.

Weather forecasts looked relatively favourable for Midwest corn and soybean crops, although there was still uncertainty as to whether showers would reach all of the areas affected by very dry conditions earlier this summer.

“Grain prices will trade largely sideways in the coming weeks as wheat harvests are nearly finished and weather conditions remain favourable for upcoming Northern Hemisphere corn and soybean harvests,” BMI Research analysts said in a note.

The weather forecast also added pressure to the wheat market as rain was expected to recharge soil moisture in winter wheat areas ahead of planting this fall.

Soybeans have been underpinned this week by renewed export demand, suggesting a window for U.S. exports despite record harvest supplies in rival exporter Brazil.

Light crude oil nearby futures in New York were up $1.42 US$48.51 per barrel.

In the afternoon, the Canadian dollar was trading around US79.53 cents, up from 78.88 cents the previous trading day. The U.S. dollar was C$1.2574.

Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 17   506.70s   +6.70   +1.34%
Canola Jan 18   511.20s   +6.70   +1.33%
Canola Mar 18   514.50s   +6.90   +1.36%
Canola May 18   516.70s   +7.10   +1.39%
Canola Jul 18   517.20s   +6.60   +1.29%

Milling Wheat Oct 17   258.00s   -1.00   -0.39%
Milling Wheat Dec 17   261.00s   -1.00   -0.38%
Milling Wheat Mar 18   267.00s   -1.00   -0.37%

ADVERTISMENT

Durum Wheat Oct 17   324.00s   -1.00   -0.31%
Durum Wheat Dec 17   325.00s   -1.00   -0.31%
Durum Wheat Mar 18   310.00s   -1.00   -0.32%

Barley Oct 17   145.00s   unch   unch
Barley Dec 17   148.00s   unch   unch
Barley Mar 18   151.00s   unch   unch

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.

Chicago
Soybeans Sep 17   937-4s   +7-2   +0.78%
Soybeans Nov 17   937-6s   +4-6   +0.51%
Soybeans Jan 18   945-6s   +4-4   +0.48%
Soybeans Mar 18   953-6s   +4-2   +0.45%
Soybeans May 18   960-6s   +4-0   +0.42%

Soybean Meal Sep 17   297.2s   +1.1   +0.37%
Soybean Meal Oct 17   298.7s   +1.0   +0.34%
Soybean Meal Dec 17   300.5s   +0.5   +0.17%

Soybean Oil Sep 17   33.61s   +0.40   +1.20%
Soybean Oil Oct 17   33.74s   +0.40   +1.20%
Soybean Oil Dec 17   33.97s   +0.42   +1.25%

Corn Sep 17   352-0s   +1-4   +0.43%
Corn Dec 17   365-6s   +1-4   +0.41%
Corn Mar 18   377-6s   +1-4   +0.40%
Corn May 18   384-0s   +1-6   +0.46%
Corn Jul 18   390-0s   +1-6   +0.45%

Oats Sep 17   254-6s   -3-4   -1.36%
Oats Dec 17   258-6s   +0-6   +0.29%
Oats Mar 18   259-6s   +0-6   +0.29%
Oats May 18   262-0s   +0-4   +0.19%
Oats Jul 18   263-2s   +0-2   +0.10%

Wheat Sep 17   416-0s   +2-0   +0.48%
Wheat Dec 17   442-4s   +1-6   +0.40%
Wheat Mar 18   465-2s   +1-4   +0.32%
Wheat May 18   479-6s   +0-4   +0.10%
Wheat Jul 18   493-0s   +0-2   +0.05%

Minneapolis
Spring Wheat Sep 17   668-6s   -1-4   -0.22%
Spring Wheat Dec 17   682-4s   -1-6   -0.26%
Spring Wheat Mar 18   682-2s   -2-2   -0.33%
Spring Wheat May 18   672-0s   -2-6   -0.41%
Spring Wheat Jul 18   662-4s   -2-2   -0.34%

Kansas City
Hard Red Wheat Sep 17   414-4s   +0-2   +0.06%
Hard Red Wheat Dec 17   442-2s   +0-2   +0.06%
Hard Red Wheat Mar 18   460-6s   +0-2   +0.05%
Hard Red Wheat May 18   475-0s   unch   unch
Hard Red Wheat Jul 18   492-6s   -0-2   -0.05%

Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Aug 17   106.375s   -0.750   -0.70%
Live Cattle Oct 17   105.900s   -0.325   -0.31%
Live Cattle Dec 17   107.850s   -0.425   -0.39%

Feeder Cattle Aug 17   140.500s   +0.025   +0.02%
Feeder Cattle Sep 17   140.025s   -0.700   -0.50%
Feeder Cattle Oct 17   139.925s   -0.550   -0.39%

ADVERTISMENT

Lean Hogs Oct 17   66.125s   -0.800   -1.20%
Lean Hogs Dec 17   61.325s   -0.475   -0.77%
Lean Hogs Feb 18   66.000s   -0.300   -0.45%