ICE Futures canola contracts weaker in the most active months at Friday’s close, after trading to both sides of unchanged in choppy activity.
Strength in the Canadian dollar accounted for some of the selling pressure in canola, according to participants. The currency was up by roughly half of a cent relative to its United States counterpart in response to a favourable domestic jobs report.
Ample canola supplies in the commercial pipeline also kept canola under pressure. Farmer deliveries were up in the latest weekly Canadian Grain Commission report, while exports were on the low side.
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U.S. grains: Soy drops on demand worries, corn firm as traders question lofty yield projections
U.S. soybean futures fell to a 1-1/2 week low on Tuesday as China continued to shun purchases from the United States and as forecasts for improved rains in the coming days reinforced expectations for a sizeable Midwest harvest.
However, gains in Chicago Board of Trade soybeans provided some spillover support.
Yesterday’s production estimate from Statistics Canada also helped underpin the futures, as the 2018-19 Canadian canola crop of 20.3 million tonnes was about a million tonnes below the previous year’s level.
About 29,759 canola contracts traded, which compares with Thursday when 34,120 contracts changed hands. Spreading accounted for 23,516 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday as solid export demand provided support.
The weekly United States Department of Agriculture export sales report showed soybean sales at the higher end of trade estimates, at 890,000 tonnes.
Speculative buying contributed to the firmer tone, as soy traders adjusted positions ahead of the weekend.
However, expectations for large South American crops tempered the upside.
Uncertainty over trade relations with China also kept some caution in the market, as there has yet to be any concrete export news despite the tentative truce announced last weekend.
The USDA releases its monthly supply/demand estimates on Dec. 11, and pre-report positioning was another feature.
CORN futures were also supported by solid exports to move higher. Weekly U.S. corn exports came in at nearly 1.2 million tonnes. Mexico and Jaapn were both noted buyers.
A rally in wheat also provided some spillover support, although the corn market lagged to the upside.
WHEAT futures were boosted by good export news, as U.S. wheat is finally competitively priced on the world market.
Weekly U.S. wheat exports beat expectations at 711,000 tonnes. The USDA also announced additional private export sales of 224,000 tonnes to unknown destinations this morning.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up $1.12 at US$52.61 per barrel.
In the afternoon, the Canadian dollar was trading around US75.19 cents, up from 74.60 cents the previous trading day. The U.S. dollar was C$1.3299.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Jan 19 485.50s -0.60 -0.12%
Canola Mar 19 492.30s -1.00 -0.20%
Canola May 19 500.00s -1.00 -0.20%
Canola Jul 19 505.80s -0.60 -0.12%
Canola Nov 19 498.00s +0.60 +0.12%
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 Jan 19 916-6s +7-2 +0.80%
Soybeans Mar 19 929-0s +7-0 +0.76%
Soybeans May 19 941-6s +7-2 +0.78%
Soybeans Jul 19 953-2s +7-0 +0.74%
Soybeans Aug 19 957-0s +6-6 +0.71%
Soybean Meal Dec 18 309.1s -0.9 -0.29%
Soybean Meal Jan 19 311.2s -1.0 -0.32%
Soybean Meal Mar 19 314.7s -0.8 -0.25%
Soybean Oil Dec 18 28.50s +0.03 +0.11%
Soybean Oil Jan 19 28.74s +0.03 +0.10%
Soybean Oil Mar 19 29.00s +0.05 +0.17%
Corn Dec 18 374-0s +2-0 +0.54%
Corn Mar 19 385-4s +2-6 +0.72%
Corn May 19 392-6s +2-6 +0.71%
Corn Jul 19 399-2s +3-0 +0.76%
Corn Sep 19 399-2s +2-4 +0.63%
Oats Dec 18 281-4s -2-4 -0.88%
Oats Mar 19 288-0s -3-0 -1.03%
Oats May 19 289-4s -3-0 -1.03%
Oats Jul 19 283-2s -2-6 -0.96%
Oats Sep 19 270-4s -4-4 -1.64%
Wheat Dec 18 519-4s +14-2 +2.82%
Wheat Mar 19 531-2s +15-6 +3.06%
Wheat May 19 536-0s +15-0 +2.88%
Wheat Jul 19 540-0s +14-4 +2.76%
Wheat Sep 19 548-2s +14-2 +2.67%
Minneapolis
Spring Wheat Dec 18 585-6s +7-6 +1.34%
Spring Wheat Mar 19 581-4s +12-2 +2.15%
Spring Wheat May 19 585-6s +11-4 +2.00%
Spring Wheat Jul 19 591-0s +10-2 +1.76%
Spring Wheat Sep 19 598-0s +9-6 +1.66%
Kansas City
Hard Red Wheat Dec 18 484-4s +15-6 +3.36%
Hard Red Wheat Mar 19 512-0s +16-4 +3.33%
Hard Red Wheat May 19 522-6s +15-2 +3.00%
Hard Red Wheat Jul 19 532-0s +14-6 +2.85%
Hard Red Wheat Sep 19 544-6s +14-4 +2.73%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Dec 18 117.900s -0.050 -0.04%
Live Cattle Feb 19 121.525s -0.275 -0.23%
Live Cattle Apr 19 123.625s +0.150 +0.12%
Feeder Cattle Jan 19 144.375s +0.175 +0.12%
Feeder Cattle Mar 19 141.875s -0.075 -0.05%
Feeder Cattle Apr 19 142.525s unch unch
Lean Hogs Dec 18 54.250s -0.275 -0.50%
Lean Hogs Feb 19 67.875s +0.975 +1.46%
Lean Hogs Apr 19 72.325s +1.050 +1.47%
