Canola drifts lower on technical resistance

Canola futures closed little changed with a slightly stronger loonie and weaker soy oil limiting gains.

Also January canola ran into technical resistance as it approaches highs set in July.

The loonie edged higher on technical strength.

U.S. corn, soybeans and wheat all rose.

Bargain buying and short covering lifted corn and wheat after recent declines. There was talk that corn had fallen enough to attract some new export demand.

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The trade was also positioning ahead of next week’s USDA monthly report.

Private forecasters have been lifting their U.S. corn yield forecasts and lowering soybean yields.

Today’s weekly U.S. export sales report showed wheat and corn sales were within expectations and soybean sales beat expectations.

NEW FED CHAIR

U.S. President Donald Trump has named a new chair of the Federal Reserve.

Jerome Powell will take over from Janet Yellen when her four-year term ends in February.

Powell is a Republican and has been on the board of the Fed since 2012. Analysts say he will likely favour the same sort of attitude toward interest rate normalization as Yellen.

Interest rates were held low for a long time while the economy recovered from the 2008 melt down.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 24 cents at US$54.54 per barrel.

In the afternoon, the Canadian dollar was trading around US78.08 cents, down from 77.75 cents the previous trading day. The U.S. dollar was C$1.2807.

U.S. House Republicans introduced their tax cut legislation.

The Dow Jones Industrial Average rose 80.29 points, or 0.34 percent, to 23,515.3, the S&P 500 gained 0.45 points, or 0.02 percent, to 2,579.81 and the Nasdaq Composite dropped 1.59 points, or 0.02 percent, to 6,714.94.

 

Winnipeg ICE Futures Canada dollars per tonne

Canola Nov 17   518.40s   +3.80   +0.74%

Canola Jan 18   520.90s   -0.20   -0.04%

Canola Mar 18   526.60s   -1.00   -0.19%

Canola May 18   530.00s   -1.50   -0.28%

Canola Jul 18   531.60s   -2.40   -0.45%

 

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 Nov 17   989-0s   +8-0   +0.82%

Soybeans Jan 18   999-2s   +8-0   +0.81%

Soybeans Mar 18   1009-4s   +8-0   +0.80%

Soybeans May 18   1018-4s   +8-0   +0.79%

Soybeans Jul 18   1026-2s   +8-2   +0.81%

 

Soybean Meal Dec 17   317.4s   +3.8   +1.21%

Soybean Meal Jan 18   319.4s   +3.7   +1.17%

Soybean Meal Mar 18   322.9s   +3.6   +1.13%

 

Soybean Oil Dec 17   34.86s   -0.04   -0.11%

Soybean Oil Jan 18   35.02s   -0.04   -0.11%

Soybean Oil Mar 18   35.21s   -0.02   -0.06%

 

Corn Dec 17   350-4s   +2-2   +0.65%

Corn Mar 18   364-0s   +2-2   +0.62%

Corn May 18   372-4s   +2-0   +0.54%

Corn Jul 18   379-6s   +2-0   +0.53%

Corn Sep 18   386-4s   +2-2   +0.59%

 

Oats Dec 17   264-4s   -7-0   -2.58%

Oats Mar 18   269-4s   -5-4   -2.00%

Oats May 18   271-4s   -5-0   -1.81%

Oats Jul 18   272-0s   -5-0   -1.81%

Oats Sep 18   272-0s   -5-0   -1.81%

 

Wheat Dec 17   426-0s   +8-0   +1.91%

Wheat Mar 18   444-4s   +8-4   +1.95%

Wheat May 18   457-6s   +8-4   +1.89%

Wheat Jul 18   472-0s   +8-6   +1.89%

Wheat Sep 18   488-0s   +9-0   +1.88%

 

Minneapolis

Spring Wheat Dec 17   622-6s   +8-6   +1.43%

Spring Wheat Mar 18   636-4s   +8-6   +1.39%

Spring Wheat May 18   644-4s   +8-4   +1.34%

Spring Wheat Jul 18   647-6s   +7-0   +1.09%

Spring Wheat Sep 18   640-0s   +3-6   +0.59%

 

Kansas City

Hard Red Wheat Dec 17   425-6s   +10-0   +2.41%

Hard Red Wheat Mar 18   443-4s   +10-0   +2.31%

Hard Red Wheat May 18   457-2s   +9-6   +2.18%

Hard Red Wheat Jul 18   474-4s   +9-4   +2.04%

Hard Red Wheat Sep 18   491-6s   +9-0   +1.86%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 17   124.325s   -2.275   -1.80%

Live Cattle Feb 18   128.750s   -1.300   -1.00%

Live Cattle Apr 18   127.400s   -0.500   -0.39%

 

Feeder Cattle Nov 17   157.925s   -1.775   -1.11%

Feeder Cattle Jan 18   158.225s   -2.425   -1.51%

Feeder Cattle Mar 18   155.525s   -1.650   -1.05%

 

Lean Hogs Dec 17   65.800s   -0.800   -1.20%

Lean Hogs Feb 18   72.050s   -0.100   -0.14%

Lean Hogs Apr 18 75.725s   +0.150   +0.20%

 

 

 

 

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