Canola dips again

 

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were weaker on Wednesday, taking some direction from a downturn in Chicago Board of Trade soybeans.

Bearish technical signals contributed to the declines, with some stops hit on the way down as prices dipped below nearby support.

Relatively favourable North American crop conditions also weighed on values, with recent rainfall helping improve the yield potential greatly in many areas. However, some regions may be starting to get too wet, while others missed out on the moisture, according to participants.

About 34,181 canola contracts traded, which compares with Tuesday when 38,263 contracts changed hands. Spreading accounted for 27,230 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were down sharply on Wednesday, as attention shifted back to the weather following Tuesday’s short-lived reaction to the United States Department of Agriculture’s latest numbers.

Crop conditions are generally thought to be good across most of the Midwest, with no real weather threats in the nearby forecasts.

Concerns that the U.S. will impose tariffs on China as early as this Friday also weighed on beans, as China would retaliate with tariffs of its own.

CORN was also pressured by good Midwestern weather and trade concerns, but only posted small losses as tightening stocks projections remained supportive.

Good demand from the ethanol sector also helped temper the declines in corn.

WHEAT futures were all lower, taking back all of Tuesday’s gains as speculators moved back to the sell side.

The advancing U.S. winter wheat harvest added to the soft tone, although production was hurt by adverse growing conditions this year.

Weather concerns in both Russia and Australia also remained supportive for wheat.

Minneapolis spring wheat lagged the Chicago and Kansas City winter wheat’s to the downside, finding some support from private estimates predicting that U.S. spring wheat seeded area may end up about half a million acres below earlier estimates.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 28 cents at US$66.64 per barrel.

In the afternoon, the Canadian dollar was trading around US77.07 cents, up from 76.82 cents the previous trading day. The U.S. dollar was C$1.2975.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 18 514.50s -2.50 -0.48%

Canola Nov 18 505.90s -5.10 -1.00%

Canola Jan 19 511.70s -5.80 -1.12%

Canola Mar 19 515.80s -5.60 -1.07%

Canola May 19 518.20s -5.50 -1.05%

 

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 Jul 18 936-0s -18-0 -1.89%

Soybeans Aug 18 941-6s -17-6 -1.85%

Soybeans Sep 18 948-2s -17-0 -1.76%

Soybeans Nov 18 958-6s -15-6 -1.62%

Soybeans Jan 19 967-0s -15-2 -1.55%

 

Soybean Meal Jul 18 347.7s -5.8 -1.64%

Soybean Meal Aug 18 349.5s -5.7 -1.60%

Soybean Meal Sep 18 351.2s -5.6 -1.57%

 

Soybean Oil Jul 18 30.08s +0.03 +0.10%

Soybean Oil Aug 18 30.21s +0.02 +0.07%

Soybean Oil Sep 18 30.36s +0.01 +0.03%

 

Corn Jul 18 376-0s -1-4 -0.40%

Corn Sep 18 385-4s -1-2 -0.32%

Corn Dec 18 397-0s -1-2 -0.31%

Corn Mar 19 406-2s -1-2 -0.31%

Corn May 19 412-2s -1-2 -0.30%

 

Oats Jul 18 233-0s -9-2 -3.82%

Oats Sep 18 237-4s -8-4 -3.46%

Oats Dec 18 243-6s -7-4 -2.99%

Oats Mar 19 248-6s -5-2 -2.07%

Oats May 19 251-4s -5-0 -1.95%

 

Wheat Jul 18 516-4s -18-0 -3.37%

Wheat Sep 18 532-6s -17-2 -3.14%

Wheat Dec 18 556-0s -16-2 -2.84%

Wheat Mar 19 575-0s -15-6 -2.67%

Wheat May 19 586-2s -15-0 -2.49%

 

Minneapolis

Spring Wheat Jul 18 584-4s -8-0 -1.35%

Spring Wheat Sep 18 597-2s -7-2 -1.20%

Spring Wheat Dec 18 611-2s -6-6 -1.09%

Spring Wheat Mar 19 626-0s -6-4 -1.03%

Spring Wheat May 19 634-0s -7-0 -1.09%

 

Kansas City

Hard Red Wheat Jul 18 539-0s -14-4 -2.62%

Hard Red Wheat Sep 18 555-0s -13-0 -2.29%

Hard Red Wheat Dec 18 578-0s -12-4 -2.12%

Hard Red Wheat Mar 19 593-4s -12-0 -1.98%

Hard Red Wheat May 19 603-2s -11-4 -1.87%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 18 107.925s -0.600 -0.55%

Live Cattle Aug 18 103.900s -0.400 -0.38%

Live Cattle Oct 18 106.925s -0.425 -0.40%

 

Feeder Cattle Aug 18 145.650s -0.150 -0.10%

Feeder Cattle Sep 18 146.675s -0.150 -0.10%

Feeder Cattle Oct 18 146.450s -0.500 -0.34%

 

Lean Hogs Jun 18 81.000s +0.475 +0.59%

Lean Hogs Jul 18 82.775s +1.325 +1.63%

Lean Hogs Aug 18 79.650s +2.125 +2.74%

 

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

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