Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were stronger on Wednesday, hitting their highest levels in three months as gains in Chicago Board of Trade soybeans and weakness in the Canadian dollar provided support.
While CBOT soyoil futures were softer on the day, the activity in soymeal and the Canadian dollar were enough to help crush margins improve. Supportive technical signals also underpinned the canola market, with speculators reportedly adding to long positions.
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Pulse weekly: Large U.S. pea/lentil crops expected
Lentil production in the United States hit its largest level in nearly a decade, while the dry edible pea crop reached levels not seen in over five years, said updated production estimates from the U.S. Department of Agriculture.
About 25,469 canola contracts traded on Wednesday, which compares with Tuesday when 37,304 contracts changed hands. Spreading accounted for 15,160 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were higher on Wednesday, as the forecasts remain hot and dry across most of the growing regions in Argentina over the next week.
The USDA announced a 250,000 tonne sale of U.S. soybeans to unknown destinations this morning, adding to the firmer tone.
However, heavy deliveries against the March soyoil contract put some pressure on values.
CORN futures followed soybeans and wheat higher, with the dryness in Argentina also providing support. Wet weather in parts of the United States added to the firmer tone, as the precipitation is causing rivers to flood and slowing some barge movement.
Large old crop supplies and farmer selling tempered the upside in corn.
WHEAT futures were up sharply, with the Kansas City hard red winter wheat market leading the charge higher, as crop prospects in the U.S. Plains continue to deteriorate due to a lack of moisture.
The mounting weather worries kept selling to a minimum, while traders holding short positions were looking to get out of them.
Cold temperatures in Europe added to the firmer tone in wheat.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were down $1.37 at US$61.64 per barrel.
In the afternoon, the Canadian dollar was trading around US77.91 cents, down from 78.28 cents the previous trading day. The U.S. dollar was C$1.2835.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 18 520.30s +3.00 +0.58%
Canola May 18 524.00s +2.00 +0.38%
Canola Jul 18 529.00s +0.90 +0.17%
Canola Nov 18 515.30s +1.70 +0.33%
Canola Jan 19 519.70s +2.40 +0.46%
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 Mar 18 1045-0s +7-0 +0.67%
Soybeans May 18 1055-4s +6-0 +0.57%
Soybeans Jul 18 1064-2s +5-6 +0.54%
Soybeans Aug 18 1063-2s +5-2 +0.50%
Soybeans Sep 18 1045-4s +2-0 +0.19%
Soybean Meal Mar 18 394.2s +7.7 +1.99%
Soybean Meal May 18 394.7s +5.5 +1.41%
Soybean Meal Jul 18 392.1s +5.7 +1.48%
Soybean Oil Mar 18 31.96s -0.23 -0.71%
Soybean Oil May 18 32.23s -0.17 -0.52%
Soybean Oil Jul 18 32.43s -0.15 -0.46%
Corn Mar 18 374-4s +4-0 +1.08%
Corn May 18 382-0s +2-6 +0.73%
Corn Jul 18 389-4s +2-4 +0.65%
Corn Sep 18 395-0s +2-0 +0.51%
Corn Dec 18 401-4s +1-4 +0.38%
Oats Mar 18 263-0s +3-0 +1.15%
Oats May 18 270-2s +0-4 +0.19%
Oats Jul 18 272-6s +0-6 +0.28%
Oats Sep 18 268-2s +0-6 +0.28%
Oats Dec 18 265-6s +1-4 +0.57%
Wheat Mar 18 484-4s +21-2 +4.59%
Wheat May 18 495-0s +18-0 +3.77%
Wheat Jul 18 507-2s +16-0 +3.26%
Wheat Sep 18 521-2s +13-6 +2.71%
Wheat Dec 18 540-6s +11-6 +2.22%
Minneapolis
Spring Wheat Mar 18 606-0s +9-4 +1.59%
Spring Wheat May 18 621-6s +12-6 +2.09%
Spring Wheat Jul 18 630-6s +12-4 +2.02%
Spring Wheat Sep 18 637-6s +12-2 +1.96%
Spring Wheat Dec 18 645-0s +9-4 +1.49%
Kansas City
Hard Red Wheat Mar 18 508-2s +19-2 +3.94%
Hard Red Wheat May 18 522-2s +17-4 +3.47%
Hard Red Wheat Jul 18 539-0s +16-4 +3.16%
Hard Red Wheat Sep 18 554-2s +15-0 +2.78%
Hard Red Wheat Dec 18 573-0s +14-0 +2.50%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 18 127.500s -0.525 -0.41%
Live Cattle Apr 18 123.275s -0.975 -0.78%
Live Cattle Jun 18 115.600s -0.750 -0.64%
Feeder Cattle Mar 18 144.750s -1.800 -1.23%
Feeder Cattle Apr 18 147.000s -2.200 -1.47%
Feeder Cattle May 18 148.550s -1.700 -1.13%
Lean Hogs Apr 18 67.225s -2.725 -3.90%
Lean Hogs May 18 74.875s -1.525 -2.00%
Lean Hogs Jun 18 80.675s -1.350 -1.65%
