WINNIPEG – ICE Futures canola contracts were weaker on Monday, with the spread weighing on values especially for the front months.
The May contract lost C$1.40 at C$438.10 per tonne and the July contract fell C$1.30 at C$444.90 per tonne.
China’s ban on canola imports from Canada and farmers in the United States switching from corn to planting soybeans weighed on values. As did a weaker vegetable oil market and a huge South American soybean harvest.
The prospect of fewer canola acres being planted on the Prairies this year tempered losses.
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Snowfall on parts of the Prairies over the weekend has delayed planting. Daytime highs in the single digits this week won’t be conducive to planting as well.
Since last week, there have been reports of Canadian soybeans, peas and pork having trouble getting imported into China. Imports have been delayed or rejected by Chinese authorities for a variety of reasons.
New canola sales of dried up in January, about a month after the arrest of Huawei Technology executive Meng Wanzhou was arrested. It wasn’t until March, that China officially banned Richardson International and Viterra from selling canola to the country.
The Leader of the Official Opposition, Andrew Scheer, accused Prime Minister Justin Trudeau of not doing enough to help struggling canola growers. Scheer stated Trudeau has allowed China to get away with detaining two Canadian citizens and banning canola imports without any fear of consequences. The Conservative leader also called on the Liberal government to appeal China’s ban to the World Trade Organization, and increase advance payments to canola growers.
The federal government said it is taking a scientific approach to resolving the import ban, with retaliatory measures only as a last resort. Also, the feds set up the Canola Working Group that includes senior government officials from the Prairie Provinces, industry and growers.
There were 23,800 contracts traded on Monday, which compares with Friday when 31,661 contracts changed hands.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday due to a large global supply and sluggish United States exports.
The U.S. Department of Agriculture will release its crop progress report later on Monday afternoon. Expectations are for soybean acres to increase from one per cent to four per cent planted.
High-level trade talks between the U.S. and China are set to resume on Tuesday. According to Mike Jubinville of MarketsFarm Pro, a major grain company said its customers have been getting ready for a trade deal between the two countries. In the deal, China is expected to buy large quantities of U.S. soybeans.
The Brazil real and the Argentina peso lost ground to the U.S. dollar last week. That made South American soybean and corn purchases more attractive to international buyers.
CORN futures were up slightly on Monday, as fewer corn acres to be planted by U.S. farmers in 2019.
That said expectations are for 14 per cent of the corn crop to be in the ground, up from six per cent from the USDA’s report last week.
Corn imports by the European Union increased by 39 per cent year-over-year, according to a report. The EU imported 20.1 million tonnes of corn as of April 28.
WHEAT futures were weaker on Monday, due large global supplies.
Ahead of the USDA’s report, expectations are for 14 per cent of the U.S. wheat crop to in the ground, up from the previous report’s five per cent.
EU soft wheat exports have reached 16.9 million tonnes this crop year. That’s 20 per cent behind the pace compared to the previous crop year.
Algeria purchased about 198,674 tonnes of durum, likely from Canada.
Saudi Arabia purchased approximately 620,514 tonnes of wheat, of which some is from the U.S.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up 79 cents at US$63.59 per barrel.
In the afternoon, the Canadian dollar was trading around US74.32 cents, up from US74.18 cents the previous trading day. The U.S. dollar was C$1.3455
Winnipeg ICE Futures Canada dollars per tonne.
Name / Contract Last Change % Change
Canola May 19 438.10s -1.40 -0.32%
Canola Jul 19 444.90s -1.30 -0.29%
Canola Nov 19 458.90s -0.90 -0.20%
Canola Jan 20 466.20s -0.40 -0.09%
Canola Mar 20 472.80s unch unch
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 May 19 847-4s -6-2 -0.73%
Soybean Jul 19 860-6s -6-2 -0.72%
Soybean Aug 19 866-6s -6-4 -0.74%
Soybean Sep 19 871-4s -6-6 -0.77%
Soybean Nov 19 880-6s -7-0 -0.79%
Soybean Meal May 19 297.2s -2.7 -0.90%
Soybean Meal Jul 19 300.9s -2.8 -0.92%
Soybean Meal Aug 19 302.0s -2.8 -0.92%
Soybean Oil May 19 27.88s +0.36 +1.31%
Soybean Oil Jul 19 28.19s +0.35 +1.26%
Soybean Oil Aug 19 28.33s +0.34 +1.21%
Corn May 19 352-0s +0-6 +0.21%
Corn Jul 19 361-6s +0-4 +0.14%
Corn Sep 19 370-0s +0-4 +0.14%
Corn Dec 19 381-2s +0-4 +0.13%
Corn Mar 20 395-6s +0-2 +0.06%
Oats May 19 317-2s +8-4 +2.75%
Oats Jul 19 297-4s +2-6 +0.93%
Oats Sep 19 278-6s +2-0 +0.72%
Oats Dec 19 263-2s +0-2 +0.10%
Oats Mar 20 255-6s +1-6 +0.69%
Wheat May 19 426-6s -8-2 -1.90%
Wheat Jul 19 435-2s -7-2 -1.64%
Wheat Sep 19 443-6s -6-4 -1.44%
Wheat Dec 19 460-6s -6-4 -1.39%
Wheat Mar 20 477-6s -6-0 -1.24%
Minneapolis
Spring Wheat May 19 490-6s -7-2 -1.46%
Spring Wheat Jul 19 507-4s -4-2 -0.83%
Spring Wheat Sep 19 517-2s -3-6 -0.72%
Spring Wheat Dec 19 532-4s -3-2 -0.61%
Spring Wheat Mar 20 547-4s -2-6 -0.50%
Kansas City
Hard Red Wheat May 19 389-6s -10-0 -2.50%
Hard Red Wheat Jul 19 397-0s -10-4 -2.58%
Hard Red Wheat Sep 19 408-2s -9-6 -2.33%
Hard Red Wheat Dec 19 430-6s -9-0 -2.05%
Hard Red Wheat Mar 20 453-6s -8-0 -1.73%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 19 124.775s +0.225 +0.18%
Live Cattle Jun 19 114.800s -0.250 -0.22%
Live Cattle Aug 19 112.550s -0.100 -0.09%
Feeder Cattle May 19 143.400s -0.550 -0.38%
Feeder Cattle Aug 19 151.075s -1.775 -1.16%
Feeder Cattle Sep 19 152.500s -1.350 -0.88%
Lean Hogs May 19 84.775s -2.225 -2.56%
Lean Hogs Jun 19 88.050s -0.700 -0.79%
Lean Hogs Jul 19 92.550s -0.900 -0.96%
