Bargain hunting, slow sales hold canola futures steady

Winnipeg,(MarketsFarm) – ICE Futures canola contracts held steady on Thursday, seeing some consolidation after recent declines.

After falling by roughly C$10 per tonne over the past week, canola was due for a correction and some bargain-hunting likely came forward to provide support.

A lack of farmer selling contributed to the firmer tone in canola, as cold Prairie weather slows country movement.

However, losses in Chicago Board of Trade soybeans and soyoil did put some spillover pressure on values. Ample old crop supplies also remained a bearish influence in the background.

About 14,099 canola contracts traded on Thursday, which compares with Wednesday when 29,972 contracts changed hands. Spreading accounted for 7,712 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, seeing some follow-through selling after Wednesday’s declines.

While the phase one trade deal signed by the United States and China on Wednesday includes promises for increased Chinese purchases of U.S. agricultural goods, traders skeptical over whether or not the targets will be reached.

Large U.S. soyoil supplies and recent weakness in Malaysian palm oil also weighed on prices.

However, solid weekly export data helped temper the declines. The U.S. Department of Agriculture reported weekly U.S. soybean export sales of about 711,000 tonnes, which was up by 40 per cent from the previous week.

CORN posted large losses in sympathy with wheat and soybeans. Bearish technical signals and the general wariness over the U.S./China trade deal contributed to the declines

However, weekly U.S. corn export sales of just under 800,000 tonnes were up sharply from the previous week and provided some support.

The U.S. Senate passed the U.S./Mexico/Canada trade deal this morning, which should open the door for more U.S. corn sales to Mexico going forward.

WHEAT futures posted large losses, backing away from the highs hit Thursday as values ran into upside resistance.

Weekly U.S. wheat export sales of 650,000 tonnes showed a considerable improvement from the previous week, which provided some support.

France’s Strategie Grains forecast the 2020 European wheat crop at 139.8 million tonnes, which would be down slightly from an earlier estimate of 140.5 million.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 71 cents at US$58.52 per barrel.

In the afternoon, the Canadian dollar was trading around US76.66 cents, up from 76.63 cents the previous trading day. The U.S. dollar was C$1.3045.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 20 476.00s +0.20 +0.04%

Canola May 20 485.00s unch unch

Canola Jul 20 490.30s -0.10 -0.02%

Canola Nov 20 494.50s +0.70 +0.14%

Canola Jan 21 499.70s +0.20 +0.04%

 

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 20 924-0s -4-6 -0.51%

Soybean May 20 937-2s -4-6 -0.50%

Soybean Jul 20 950-0s -4-2 -0.45%

Soybean Aug 20 954-0s -4-0 -0.42%

Soybean Sep 20 953-0s -3-4 -0.37%

 

Soybean Meal Mar 20 300.6s +0.5 +0.17%

Soybean Meal May 20 305.2s +0.4 +0.13%

Soybean Meal Jul 20 309.7s +0.3 +0.10%

 

Soybean Oil Mar 20 33.03s -0.27 -0.81%

Soybean Oil May 20 33.37s -0.27 -0.80%

Soybean Oil Jul 20 33.74s -0.27 -0.79%

 

Corn Mar 20 375-4s -12-0 -3.10%

Corn May 20 382-4s -11-4 -2.92%

Corn Jul 20 389-0s -11-4 -2.87%

Corn Sep 20 390-4s -9-6 -2.44%

Corn Dec 20 394-0s -8-4 -2.11%

 

Oats Mar 20 305-4s -0-2 -0.08%

Oats May 20 301-0s -1-2 -0.41%

Oats Jul 20 290-0s -3-6 -1.28%

Oats Sep 20 280-4s -1-4 -0.53%

Oats Dec 20 270-4s -1-4 -0.55%

 

Wheat Mar 20 565-2s -8-0 -1.40%

Wheat May 20 566-2s -7-6 -1.35%

Wheat Jul 20 566-6s -8-0 -1.39%

Wheat Sep 20 572-0s -7-4 -1.29%

Wheat Dec 20 580-4s -6-4 -1.11%

 

Minneapolis

Spring Wheat Mar 20 550-2s -6-0 -1.08%

Spring Wheat May 20 559-2s -4-4 -0.80%

Spring Wheat Jul 20 566-6s -3-6 -0.66%

Spring Wheat Sep 20 575-0s -4-2 -0.73%

Spring Wheat Dec 20 586-6s -4-2 -0.72%

 

Kansas City

Hard Red Wheat Mar 20 484-6s -11-6 -2.37%

Hard Red Wheat May 20 492-2s -11-6 -2.33%

Hard Red Wheat Jul 20 500-0s -11-4 -2.25%

Hard Red Wheat Sep 20 508-2s -11-4 -2.21%

Hard Red Wheat Dec 20 519-6s -11-2 -2.12%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 20 126.125s -0.475 -0.38%

Live Cattle Apr 20 126.425s -1.075 -0.84%

Live Cattle Jun 20 118.850s -0.575 -0.48%

 

Feeder Cattle Jan 20 145.425s unch unch

Feeder Cattle Mar 20 144.825s -0.350 -0.24%

Feeder Cattle Apr 20 147.800s -0.400 -0.27%

 

Lean Hogs Feb 20 66.875s -1.000 -1.47%

Lean Hogs Apr 20 73.775s -1.200 -1.60%

Lean Hogs May 20 80.725s -0.750 -0.92%

 

About the author

Markets at a glance

explore

Stories from our other publications