Canola dips ahead of USDA report

Winnipeg (CNS Canada) – The ICE Futures Canada canola complex finished lower in choppy trading on Wednesday. Traders were positioning themselves ahead of tomorrow’s USDA supply and demand report as weakness in other vegetable oil markets pointed the way lower.

Rising estimates for the size of Brazil’s soybean crop were bearish.

The front-month contract slid below the psychologically-important C$500 per tonne mark.

However, weakness in the Canadian currency was supportive for canola as it made the commodity more attractive to international buyers.

Commercial buying is on the slow side.

Around 27,004 canola contracts were traded on Wednesday, which compares with Tuesday when around 37,224 contracts changed hands. Spreading accounted for 19,380 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Soybean futures on the Chicago Board of Trade fell Wednesday, on expectations rain will fall in Argentina this week.

Some traders took profits in the early going and then positioned themselves in advance of tomorrow’s USDA supply and demand report.

Most analysts expect the USDA to raise its projections for the U.S. carryout.

The corn market ended one cent higher in speculative trading.

Analysts believe tomorrow’s USDA report will lower Brazil’s corn production number by 1.7 million tonnes, and Argentina’s by 1.5 million tonnes.

Gains in weekly ethanol production figures were bullish. Last week production was pegged at 1.06 million barrels per day, which was up 17,000 barrels from the previous week.

Chicago wheat posted solid gains, taking strength from worries over dryness in the U.S. Plains.

There are ideas world wheat ending stocks will be lowered in tomorrow’s USDA report.

Ethiopia is shopping around for 400,000 tonnes of wheat.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were down $1.60 at US$61.79 per barrel.

In the afternoon, the Canadian dollar was trading around US79.56 cents, down from 79.93 cents the previous trading day. The U.S. dollar was C$1.2569.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 18 498.20s -1.60 -0.32%

Canola May 18 504.40s -1.10 -0.22%

Canola Jul 18 509.30s -1.30 -0.25%

Canola Nov 18 506.50s -1.20 -0.24%

Canola Jan 19 510.70s -1.10 -0.21%

 

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 Mar 18 983-0s -3-2 -0.33%

Soybeans May 18 994-2s -3-4 -0.35%

Soybeans Jul 18 1004-0s -3-4 -0.35%

Soybeans Aug 18 1005-6s -4-0 -0.40%

Soybeans Sep 18 1001-0s -4-4 -0.45%

 

Soybean Meal Mar 18 335.4s +3.7 +1.12%

Soybean Meal May 18 339.1s +3.7 +1.10%

Soybean Meal Jul 18 341.1s +3.6 +1.07%

 

Soybean Oil Mar 18 32.56s -0.60 -1.81%

Soybean Oil May 18 32.74s -0.61 -1.83%

Soybean Oil Jul 18 32.94s -0.61 -1.82%

 

Corn Mar 18 365-2s +1-6 +0.48%

Corn May 18 372-6s +1-4 +0.40%

Corn Jul 18 380-2s +1-4 +0.40%

Corn Sep 18 387-0s +1-2 +0.32%

Corn Dec 18 394-6s +1-2 +0.32%

 

Oats Mar 18 273-2s +4-2 +1.58%

Oats May 18 273-0s +2-0 +0.74%

Oats Jul 18 268-4s -3-0 -1.10%

Oats Sep 18 267-4s -5-0 -1.83%

Oats Dec 18 268-6s -2-2 -0.83%

 

Wheat Mar 18 460-4s +14-2 +3.19%

Wheat May 18 473-0s +14-0 +3.05%

Wheat Jul 18 486-2s +13-2 +2.80%

Wheat Sep 18 500-0s +12-4 +2.56%

Wheat Dec 18 518-6s +12-0 +2.37%

 

Minneapolis

Spring Wheat Mar 18 612-2s +4-0 +0.66%

Spring Wheat May 18 624-0s +4-2 +0.69%

Spring Wheat Jul 18 633-0s +5-0 +0.80%

Spring Wheat Sep 18 636-6s +6-6 +1.07%

Spring Wheat Dec 18 643-4s +5-6 +0.90%

 

Kansas City

Hard Red Wheat Mar 18 481-0s +12-0 +2.56%

Hard Red Wheat May 18 495-6s +11-6 +2.43%

Hard Red Wheat Jul 18 511-4s +12-0 +2.40%

Hard Red Wheat Sep 18 526-6s +12-2 +2.38%

Hard Red Wheat Dec 18 545-6s +12-0 +2.25%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 18 125.600s -0.025 -0.02%

Live Cattle Apr 18 123.975s -0.600 -0.48%

Live Cattle Jun 18 115.725s -0.100 -0.09%

 

Feeder Cattle Mar 18 148.300s -0.425 -0.29%

Feeder Cattle Apr 18 149.350s -0.075 -0.05%

Feeder Cattle May 18 149.350s +0.225 +0.15%

 

Lean Hogs Feb 18 73.850s -0.900 -1.20%

Lean Hogs Apr 18 69.225s -2.200 -3.08%

Lean Hogs May 18 75.100s -2.000 -2.59%

 

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