Canola dips ahead of USDA report

Winnipeg – Canola contracts on the ICE Futures platform suffered modest losses to end the week, as traders prepared for next week’s USDA supply and demand report. There are ideas soybean stocks could rise in the report, which would be bearish for canola and other oilseeds.

Some traders were also squaring positions ahead of the long weekend. The ICE canola market will be closed Monday for a civic holiday in Canada.

Trade tensions between the United States and China threw some caution into futures and crush margins remain weak.

However, dry conditions in Western Canada look to continue through the month of August, which will stress canola crops in parts of Alberta and Saskatchewan.

Gains in U.S. soyoil were supportive for the market.

Volumes were extremely low.

About 4,996 canola contracts traded, which compares with Thursday when 5,452 contracts changed hands. Spreading accounted for 1,018 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Soybean futures on the Chicago Board of Trade ended slightly higher Friday in sideways trade.

There is speculation China may have to start buying soybeans from the United States, despite the tariffs, to satisfy its enormous demand.

China also announced it was preparing to slap tariffs on US$60 billion worth of U.S. imports.

The corn market ended higher Friday in speculative buying.

The corn harvest in Argentina is 84 per cent complete, according to the Buenos Aires Exchange. Most forecasts peg crop production at 30 to 31 million tonnes.

According to the USDA, U.S. exporters sold 130,000 tonnes of corn to Vietnam for 2018-19.

Chicago wheat futures ended slighty lower in corrective trading.

Weather conditions in the U.S. Plains haven’t been as hot as previously projected, which was bearish.

There is still uncertainty over whether Ukraine will start to limit wheat exports, but Russia has announced it will keep shipping out wheat.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up xx cents at US$68.68 per barrel.

In the afternoon, the Canadian dollar was trading around US76.96 cents. The U.S. dollar was C$1.2994

 

Winnipeg ICE Futures Canada dollars per tonne.

Name / Contract Last Change % Change

Canola Nov 18 494.00s -2.00 -0.40%

Canola Jan 19 500.30s -2.30 -0.46%

Canola Mar 19 506.00s -2.00 -0.39%

Canola May 19 510.00s -2.20 -0.43%

Canola Jul 19 512.40s -2.20 -0.43%

 

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 Aug 18 886-2s +3-6 +0.42%

Soybeans Sep 18 891-4s +4-4 +0.51%

Soybeans Nov 18 902-2s +4-6 +0.53%

Soybeans Jan 19 913-6s +5-0 +0.55%

Soybeans Mar 19 923-2s +5-2 +0.57%

 

Soybean Meal Aug 18 332.5s -0.3 -0.09%

Soybean Meal Sep 18 330.6s -0.4 -0.12%

Soybean Meal Oct 18 330.6s -0.7 -0.21%

 

Soybean Oil Aug 18 28.35s +0.23 +0.82%

Soybean Oil Sep 18 28.52s +0.23 +0.81%

Soybean Oil Oct 18 28.64s +0.24 +0.85%

 

Corn Sep 18 369-6s +3-0 +0.82%

Corn Dec 18 384-2s +3-0 +0.79%

Corn Mar 19 395-4s +3-2 +0.83%

Corn May 19 401-4s +3-4 +0.88%

Corn Jul 19 407-0s +3-2 +0.80%

 

Oats Sep 18 249-6s +6-6 +2.78%

Oats Dec 18 257-0s +6-2 +2.49%

Oats Mar 19 260-2s +6-0 +2.36%

Oats May 19 262-4s +5-6 +2.24%

Oats Jul 19 265-4s +5-4 +2.12%

 

Wheat Sep 18 556-2s -4-2 -0.76%

Wheat Dec 18 579-6s -3-0 -0.51%

Wheat Mar 19 599-2s -0-6 -0.13%

Wheat May 19 605-2s -0-6 -0.12%

Wheat Jul 19 597-6s +0-2 +0.04%

 

Minneapolis

Spring Wheat Sep 18 612-6s +2-2 +0.37%

Spring Wheat Dec 18 629-6s +2-0 +0.32%

Spring Wheat Mar 19 644-2s +2-4 +0.39%

Spring Wheat May 19 650-4s +2-2 +0.35%

Spring Wheat Jul 19 654-4s +2-0 +0.31%

 

Kansas City

Hard Red Wheat Sep 18 567-2s -2-0 -0.35%

Hard Red Wheat Dec 18 595-2s -1-4 -0.25%

Hard Red Wheat Mar 19 613-2s -0-6 -0.12%

Hard Red Wheat May 19 621-2s unch unch

Hard Red Wheat Jul 19 615-6s +1-4 +0.24%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle   Aug 18 110.675s +2.075 +1.91%

Live Cattle   Oct 18 112.000s +2.050 +1.86%

Live Cattle   Dec 18 115.500s +1.675 +1.47%

 

Feeder Cattle   Aug 18 152.850s +1.650 +1.09%

Feeder Cattle   Sep 18 153.025s +1.675 +1.11%

Feeder Cattle   Oct 18 153.025s +1.425 +0.94%

 

Lean Hogs   Aug 18 58.500s -0.475 -0.81%

Lean Hogs   Oct 18 50.775s +1.125 +2.27%

Lean Hogs   Dec 18 46.175s +1.000 +2.21%

About the author

CNS Canada's recent articles

Comments

Markets at a glance

Copyright © 2018. All market data is provided by Barchart Market Data Solutions. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

explore

Stories from our other publications