WINNIPEG – ICE Futures canola contracts were stronger on Tuesday, as the market corrected itself following recent losses.
Bargain hunting and increases in soybean prices also provided support.
However, Canada’s ongoing difficulties with China, large old crop supplies and expectations for another big crop in 2019 tempered Tuesday’s gains.
The Canadian dollar rose to 74.81 U.S. cents by midafternoon Tuesday.
About 17,380 contracts were traded on Tuesday, which compares with Monday when 9,350 contracts changed hands. Spreading accounted for 12,430 contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, on comments that a United States/China trade deal would greatly benefit U.S. farmers.
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In speaking about a potential trade agreement, U.S. Trade Representative Robert Lighthizer said U.S. agriculture would have open access to the Chinese market. Lighthizer also stated a deal with China will only be signed if the agreement is enforceable.
With half of Brazil’s soybean crop harvested, Conab revised its forecast of the country’s crop, bringing it down two million tonnes to 113.5 million tonnes. Initial estimates from several sources forecast Brazil’s crop to have been 122 million tonnes.
CORN futures were stronger, following wheat’s lead. This comes despite U.S. corn being reportedly more expensive than corn from South America or Ukraine.
Conab revised Brazil’s corn crop upward from 91.7 million tonnes to 92.8 million tonnes.
WHEAT futures leapt in trading on Tuesday, with gains from 14 to 24 cents per bushel in the Chicago, Kansas and Minneapolis wheat contracts.
A winter storm and heavy rains were forecast to hit parts of the U.S. Midwest on Tuesday. Already a heavy snow cover and a delayed start to spring have raised concerns over spring seeding. That acres won’t live up to expectations, which would help keep the Minneapolis futures well supported compared to winter wheats.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up eight cents at US$56.87 per barrel.
In the afternoon, the Canadian dollar was trading around US74.75 cents, up from 74.55 cents the previous trading day. The U.S. dollar was C$1.3378.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 19 453.30s +2.50 +0.55%
Canola May 19 458.30s +2.50 +0.55%
Canola Jul 19 467.10s +3.00 +0.65%
Canola Nov 19 480.60s +3.50 +0.73%
Canola Jan 20 486.70s +3.20 +0.66%
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
Soybean Mar 19 884-6s +7-0 +0.80%
Soybean May 19 897-0s +7-0 +0.79%
Soybean Jul 19 911-0s +7-0 +0.77%
Soybean Aug 19 917-0s +6-6 +0.74%
Soybean Sep 19 922-0s +6-4 +0.71%
Soybean Meal Mar 19 298.3s +1.6 +0.54%
Soybean Meal May 19 303.0s +1.7 +0.56%
Soybean Meal Jul 19 307.0s +1.7 +0.56%
Soybean Oil Mar 19 29.78s +0.38 +1.29%
Soybean Oil May 19 29.99s +0.35 +1.18%
Soybean Oil Jul 19 30.31s +0.34 +1.13%
Corn Mar 19 356-4s +4-0 +1.13%
Corn May 19 365-6s +3-6 +1.04%
Corn Jul 19 375-4s +4-0 +1.08%
Corn Sep 19 382-6s +4-4 +1.19%
Corn Dec 19 391-4s +5-0 +1.29%
Oats Mar 19 258-6s +5-4 +2.17%
Oats May 19 268-0s +5-4 +2.10%
Oats Jul 19 268-4s +5-6 +2.19%
Oats Sep 19 264-2s +4-2 +1.63%
Oats Dec 19 260-0s +4-0 +1.56%
Wheat Mar 19 446-2s +24-0 +5.68%
Wheat May 19 453-0s +24-4 +5.72%
Wheat Jul 19 460-6s +23-6 +5.43%
Wheat Sep 19 469-0s +23-0 +5.16%
Wheat Dec 19 483-4s +22-4 +4.88%
Minneapolis
Spring Wheat Mar 19 552-2s +1-4 +0.27%
Spring Wheat May 19 560-6s +14-4 +2.65%
Spring Wheat Jul 19 563-0s +14-2 +2.60%
Spring Wheat Sep 19 569-4s +13-6 +2.47%
Spring Wheat Dec 19 581-0s +12-6 +2.24%
Kansas City
Hard Red Wheat Mar 19 435-6s +21-4 +5.19%
Hard Red Wheat May 19 442-6s +22-4 +5.35%
Hard Red Wheat Jul 19 451-6s +22-0 +5.12%
Hard Red Wheat Sep 19 463-2s +21-0 +4.75%
Hard Red Wheat Dec 19 482-4s +19-4 +4.21%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 19 126.650s -2.350 -1.82%
Live Cattle Jun 19 118.675s -1.575 -1.31%
Live Cattle Aug 19 115.475s -1.175 -1.01%
Feeder Cattle Mar 19 141.300s -1.000 -0.70%
Feeder Cattle Apr 19 145.975s -1.725 -1.17%
Feeder Cattle May 19 147.400s -1.125 -0.76%
Lean Hogs Apr 19 63.650s +0.800 +1.27%
Lean Hogs May 19 71.750s +0.725 +1.02%
Lean Hogs Jun 19 80.250s +0.300 +0.38%
