Winnipeg – ICE Futures canola contracts were weaker on Tuesday, although activity was thin and choppy as participants await some fresh direction.
Losses in Chicago soybeans and soyoil accounted for some of the spillover selling pressure in canola, with bearish technical signals and poor export demand adding to the softer tone.
The Canadian dollar held steady on Tuesday, providing little direction for the market.
Extremely cold temperatures in parts of Western Canada were likely limiting farmer deliveries, providing some underlying support.
About 14,517 canola contracts traded on Tuesday, which compares with Monday when 18,651 contracts changed hands. Spreading accounted for 8,128 of the contracts traded.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, with participants showing some caution ahead of trade talks between China and the United States set to start on Wednesday.
While there was some optimism over improving relations earlier in January, that sentiment has faded as the U.S. moves forward with criminal charges against Chinese technology company Huawei.
Improving weather forecasts out of Brazil were also bearish for beans, with the harvest pressure mounting out of the country. However, hot and dry conditions have still cut into the production prospects overall.
The reopening of the U.S. government has traders awaiting a number of key supply/demand reports, due out Feb. 8. Weekly export sales figures should also be released for the first time in over a month on Thursday.
CORN was lower, taking some direction from soybeans and wheat. Weakness in ethanol added to the softer tone, according to participants.
However, solid export demand provided some support. The U.S. Department of Agriculture reported private sales of 138,000 tonnes to South Korea this morning.
Declining production estimates out of Brazil were also somewhat supportive.
WHEAT futures were lower, as the U.S. missed out on the latest Egyptian wheat tender. While the U.S. reportedly had the lowest offer, freight rates kept the country out of the running with the business going to France and Romania.
Bitterly cold temperatures in parts of the Midwest provided some support, amid concerns over winterkill.
Ideas that Russian wheat is starting to price itself out of the export market were also supportive.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up $1.32 at US$53.31 per barrel.
In the afternoon, the Canadian dollar was trading around US75.38 cents, down from 75.41 cents the previous trading day. The U.S. dollar was C$1.3266.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 19 484.50s -2.00 -0.41%
Canola May 19 492.80s -2.20 -0.44%
Canola Jul 19 500.40s -1.90 -0.38%
Canola Nov 19 497.70s -1.90 -0.38%
Canola Jan 20 502.60s -1.80 -0.36%
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 19 919-0s -4-2 -0.46%
Soybeans May 19 932-6s -4-2 -0.45%
Soybeans Jul 19 945-2s -4-4 -0.47%
Soybeans Aug 19 950-2s -4-2 -0.45%
Soybeans Sep 19 952-2s -4-2 -0.44%
Soybean Meal Mar 19 311.8s -0.4 -0.13%
Soybean Meal May 19 315.8s -0.3 -0.09%
Soybean Meal Jul 19 319.6s -0.4 -0.12%
Soybean Oil Mar 19 30.11s -0.19 -0.63%
Soybean Oil May 19 30.43s -0.18 -0.59%
Soybean Oil Jul 19 30.74s -0.18 -0.58%
Corn Mar 19 377-2s -2-4 -0.66%
Corn May 19 386-0s -2-2 -0.58%
Corn Jul 19 393-6s -2-4 -0.63%
Corn Sep 19 396-2s -2-2 -0.56%
Corn Dec 19 401-0s -2-0 -0.50%
Oats Mar 19 282-0s -3-4 -1.23%
Oats May 19 282-4s -3-2 -1.14%
Oats Jul 19 281-6s -3-2 -1.14%
Oats Sep 19 273-0s -3-4 -1.27%
Oats Dec 19 266-2s -1-6 -0.65%
Wheat Mar 19 513-2s -5-4 -1.06%
Wheat May 19 519-4s -6-0 -1.14%
Wheat Jul 19 525-0s -6-2 -1.18%
Wheat Sep 19 534-0s -6-0 -1.11%
Wheat Dec 19 547-6s -5-4 -0.99%
Minneapolis
Spring Wheat Mar 19 568-2s -5-6 -1.00%
Spring Wheat May 19 571-4s -5-2 -0.91%
Spring Wheat Jul 19 578-2s -4-4 -0.77%
Spring Wheat Sep 19 585-0s -3-6 -0.64%
Spring Wheat Dec 19 598-0s -1-4 -0.25%
Kansas City
Hard Red Wheat Mar 19 500-2s -6-4 -1.28%
Hard Red Wheat May 19 510-0s -7-0 -1.35%
Hard Red Wheat Jul 19 520-0s -6-6 -1.28%
Hard Red Wheat Sep 19 530-6s -6-2 -1.16%
Hard Red Wheat Dec 19 547-0s -5-6 -1.04%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 19 126.475s +0.075 +0.06%
Live Cattle Apr 19 127.800s +0.425 +0.33%
Live Cattle Jun 19 117.400s +0.400 +0.34%
Feeder Cattle Jan 19 142.650s -0.825 -0.58%
Feeder Cattle Mar 19 144.250s -0.100 -0.07%
Feeder Cattle Apr 19 145.700s +0.100 +0.07%
Lean Hogs Feb 19 57.325s -0.650 -1.12%
Lean Hogs Apr 19 62.550s +0.225 +0.36%
Lean Hogs May 19 68.525s +0.100 +0.15%
