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Canola climbs; soybeans down

 

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were up sharply on Thursday, as speculative short-covering, solid end user demand, and weakness in the Canadian dollar all provided support.

A looming strike at Canadian Pacific Rail provided the catalyst for the speculative short-covering that drove canola higher, according to a broker. He said traders looking to exit the nearby May contract also exaggerated the price move.

Talk of increased export demand from China and concerns over a late seeding start in Western Canada were also supportive, although industry participants are still expecting to see record large Canadian canola acres this spring. Statistics Canada releases its first survey-based acreage estimates on April 27, and most pre-report estimates are calling for planted canola area well above the 23 million acres seeded in 2017.

Soybean futures at the Chicago Board of Trade were down on the day, which tempered the upside potential in canola.

About 33,020 canola contracts traded on Thursday, which compares with Wednesday when 34,456 contracts changed hands. Spreading was a feature, accounting for 22,098 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were lower on Thursday, despite relatively solid weekly export sales.

The United States Department of Agriculture reported weekly U.S. soybean export sales of about 2.1 million tonnes for old and new crop combined, which was at the top end of trade estimates.

However, nearby demand from China has dried up and concerns that the mounting trade dispute between the U.S. and China will cut into exports to the major buyer weighed on values.

Bearish chart signals added to the softer tone, with some stops hit on the way down.

CORN futures were lower on the day, taking some direction from soybeans. However, weekly U.S. corn export sales of about 1.1 million tonnes were at the high end of trade estimates and provided some support.

Concerns over seeding delays and the possibility of some intended corn acres shifting into beans in the Midwest also kept some buying interest in the market.

WHEAT futures were mixed with gains in the Kansas City and Chicago winter wheats, but losses in Minneapolis spring wheat.

Weekly U.S. wheat sales were a net negative for the current marketing year, with new crop sales of about 240,000 tonnes at the low end of trade estimates.

While the poor export demand and large world supplies did weigh on wheat prices, the weather concerns in the southern U.S. Plains were enough to provide some support. There is some moisture in the forecasts, but traders don’t think it will be enough to cause significant improvement in the driest areas.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up $1.95 at US$68.47 per barrel.

In the afternoon, the Canadian dollar was trading around US79.18 cents, down from 79.67 cents the previous trading day. The U.S. dollar was C$1.2629.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 18 526.40s +5.10 +0.98%

Canola Jul 18 527.00s +3.20 +0.61%

Canola Nov 18 514.20s +2.90 +0.57%

Canola Jan 19 519.00s +3.50 +0.68%

Canola Mar 19 521.00s +4.10 +0.79%

 

Soybeans May 18 1041-6s -4-2 -0.41%

Soybeans Jul 18 1053-2s -4-0 -0.38%

Soybeans Aug 18 1055-0s -3-4 -0.33%

Soybeans Sep 18 1049-0s -2-0 -0.19%

Soybeans Nov 18 1045-6s +0-4 +0.05%

 

Soybean Meal May 18 376.6s -4.5 -1.18%

Soybean Meal Jul 18 381.2s -4.2 -1.09%

Soybean Meal Aug 18 381.9s -3.2 -0.83%

 

Soybean Oil May 18 31.43s +0.24 +0.77%

Soybean Oil Jul 18 31.69s +0.24 +0.76%

Soybean Oil Aug 18 31.82s +0.23 +0.73%

 

Corn May 18 383-0s +2-6 +0.72%

Corn Jul 18 391-6s +2-4 +0.64%

Corn Sep 18 399-2s +2-4 +0.63%

Corn Dec 18 408-4s +2-4 +0.62%

Corn Mar 19 416-0s +2-2 +0.54%

 

Oats May 18 236-0s +7-2 +3.17%

Oats Jul 18 238-6s +3-0 +1.27%

Oats Sep 18 246-0s +2-4 +1.03%

Oats Dec 18 256-6s +2-0 +0.79%

Oats Mar 19 263-2s +2-0 +0.77%

 

Wheat May 18 475-2s +9-0 +1.93%

Wheat Jul 18 489-2s +7-6 +1.61%

Wheat Sep 18 507-0s +7-6 +1.55%

Wheat Dec 18 530-4s +7-6 +1.48%

Wheat Mar 19 549-0s +8-0 +1.48%

 

Spring Wheat May 18 618-0s +5-4 +0.90%

Spring Wheat Jul 18 624-6s +3-4 +0.56%

Spring Wheat Sep 18 629-6s +4-0 +0.64%

Spring Wheat Dec 18 638-2s +4-0 +0.63%

Spring Wheat Mar 19 645-2s +4-6 +0.74%

 

Hard Red Wheat May 18 488-6s +8-2 +1.72%

Hard Red Wheat Jul 18 507-6s +8-2 +1.65%

Hard Red Wheat Sep 18 527-2s +7-6 +1.49%

Hard Red Wheat Dec 18 554-2s +7-6 +1.42%

Hard Red Wheat Mar 19 572-2s +8-0 +1.42%

 

Live Cattle Apr 18 118.975s +0.925 +0.78%

Live Cattle Jun 18 105.275s +0.375 +0.36%

Live Cattle Aug 18 105.150s +0.700 +0.67%

 

Feeder Cattle Apr 18 138.750s +0.025 +0.02%

Feeder Cattle May 18 140.675s +0.425 +0.30%

Feeder Cattle Aug 18 146.050s +0.975 +0.67%

 

Lean Hogs May 18 69.850s +1.950 +2.87%

Lean Hogs Jun 18 78.525s +1.775 +2.31%

Lean Hogs Jul 18 81.050s +1.825 +2.30%

 

 

 

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By Phil Franz-Warkentin Commodity News Service Canada's recent articles

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