ICE Futures canola contracts were lower on Monday, finishing right above major chart support as the market reacted to the heavy losses seen in Chicago Board of Trade soybeans.
Renewed concerns over the state of trade relations between the United States and China sparked the selloff in soybeans that spilled into canola, according to participants.
Speculators were reportedly noted sellers in the canola market, adding to their large net short positions.
On the other side, end-users were only buying on a scale-down basis, as the overall trend remains pointed lower,
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
However, a lack of significant farmer selling provided some underlying support, according to a broker. Oversold price sentiment and a weaker tone in the Canadian dollar also helped temper the declines.
About 11,424 canola contracts traded, which compares with Friday when 12,704 contracts changed hands. Spreading accounted for 6,232 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade fell sharply lower on Monday, as traders reacted to comments made by United States Vice President Mike Pence at the at the Asia-Pacific Economic Cooperation (APEC) trade summit in Papua New Guinea over the weekend.
Pence’s stance at the APEC summit took some of the optimism out of the soybean market that had built up ahead of the G20 meeting next week. With China and the U.S. still very much at odds over trade, market participants are unsure if U.S. President Donald Trump will be able to follow through on his own recent comments claiming a deal was close.
Reports of more African swine fever cases in China were also bearish for beans, as reductions to the Chinese hog herd would cut into world feed demand whether or not the U.S. is the one selling the beans to China.
Adverse Midwestern weather causing delays for the soybean fields still standing provided some support. Although with less than 10 per cent of the harvest remaining, the support was minimal.
CORN futures were lower, taking some direction from soybeans and wheat.
The Chinese trade uncertainty was also bearish for corn, while news that China has started an anti-dumping investigation into Australian barley also weighed on feed grains in general.
The USDA announced a flash sale of 138,000 tonnes of corn to South Korea this morning, and the solid demand provided some support.
WHEAT futures were mixed, with losses in Chicago and Kansas City winter wheat contracts and a firmer tone in Minneapolis spring wheat.
Weekly U.S. wheat export shipments of about 500,000 tonnes were solid, but the export pace is still running behind where it should be to meet the U.S. Department of Agriculture’s targets.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up 30 cents at US$56.76 per barrel.
In the afternoon, the Canadian dollar was trading around US75.86 cents, down from 76.02 cents the previous trading day. The U.S. dollar was C$1.3182.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Jan 19 473.20s -3.70 -0.78%
Canola Mar 19 481.10s -3.70 -0.76%
Canola May 19 488.70s -3.70 -0.75%
Canola Jul 19 494.10s -3.80 -0.76%
Canola Nov 19 494.40s -2.60 -0.52%
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 Jan 19 873-6s -18-4 -2.07%
Soybeans Mar 19 887-4s -18-2 -2.01%
Soybeans May 19 900-6s -18-0 -1.96%
Soybeans Jul 19 913-0s -17-4 -1.88%
Soybeans Aug 19 917-6s -17-0 -1.82%
Soybean Meal Dec 18 305.5s -5.4 -1.74%
Soybean Meal Jan 19 307.5s -5.5 -1.76%
Soybean Meal Mar 19 309.9s -5.3 -1.68%
Soybean Oil Dec 18 27.32s -0.05 -0.18%
Soybean Oil Jan 19 27.50s -0.07 -0.25%
Soybean Oil Mar 19 27.78s -0.08 -0.29%
Corn Dec 18 362-2s -2-4 -0.69%
Corn Mar 19 373-2s -2-4 -0.67%
Corn May 19 381-0s -2-4 -0.65%
Corn Jul 19 387-6s -2-2 -0.58%
Corn Sep 19 390-6s -1-2 -0.32%
Oats Dec 18 304-4s +6-2 +2.10%
Oats Mar 19 302-2s +4-6 +1.60%
Oats May 19 297-0s +1-0 +0.34%
Oats Jul 19 285-6s -6-4 -2.22%
Oats Sep 19 276-2s -6-6 -2.39%
Wheat Dec 18 498-4s -8-2 -1.63%
Wheat Mar 19 506-4s -8-6 -1.70%
Wheat May 19 513-4s -8-6 -1.68%
Wheat Jul 19 522-2s -8-4 -1.60%
Wheat Sep 19 533-6s -7-4 -1.39%
Minneapolis
Spring Wheat Dec 18 571-4s +0-2 +0.04%
Spring Wheat Mar 19 569-4s -4-0 -0.70%
Spring Wheat May 19 576-2s -3-6 -0.65%
Spring Wheat Jul 19 585-6s -2-4 -0.42%
Spring Wheat Sep 19 595-0s -2-2 -0.38%
Kansas City
Hard Red Wheat Dec 18 474-2s -8-4 -1.76%
Hard Red Wheat Mar 19 498-6s -7-6 -1.53%
Hard Red Wheat May 19 510-4s -7-6 -1.50%
Hard Red Wheat Jul 19 521-4s -7-6 -1.46%
Hard Red Wheat Sep 19 536-0s -7-6 -1.43%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Dec 18 116.150s +0.800 +0.69%
Live Cattle Feb 19 120.000s +0.275 +0.23%
Live Cattle Apr 19 121.850s +0.300 +0.25%
Feeder Cattle Jan 19 147.275s +0.750 +0.51%
Feeder Cattle Mar 19 144.325s +0.350 +0.24%
Feeder Cattle Apr 19 144.650s +0.325 +0.23%
Lean Hogs Dec 18 61.025s +0.950 +1.58%
Lean Hogs Feb 19 69.025s +2.275 +3.41%
Lean Hogs Apr 19 73.000s +1.250 +1.74%
