Canola drops again; markets await forecast of rain

WINNIPEG – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Tuesday, in a light volume of trading.

The July canola contract was down C$2.20 at C$453.10 per tonne. The November contract was down C$2.30 at C$466.30 per tonne.

The Canada/China dispute and large supplies have continued to weigh on canola values, as did a stronger Canadian dollar. On Tuesday afternoon the loonie was about 74.65 U.S. cents.

The markets have been waiting to see if forecasts for rain later this week pan out. The dry conditions across much of Western Canada have provided a weather premium for canola. While planting is nearing completion, the lack of rain has hurt germination and growth.

There were 13,725 contracts traded on Tuesday, which compares with Monday when 19,019 contracts changed hands. Spreading accounted for 7,482 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jul 453.10 dn 2.20
Nov 466.30 dn 2.30
Jan 472.40 dn 1.90
Mar 477.60 dn 1.30

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Tuesday, due the pace of planting in the United States

The U.S. Department of Agriculture (USDA) reported yesterday in its weekly crop progress report that 39 per cent of the country’s soybean crop has been planted, but well behind the five-year average of 79 per cent.

The USDA releases its weekly export sales report on Thursday and its World Supply and Demand Estimates on June 11.

While wet conditions on the U.S. Midwest and Plains have impeded planting this year, dry conditions are a looming worry on parts of the Canadian Prairies, Minnesota, North Dakota and Montana. Australia and the Black Sea region are suffering from cry conditions as well.

CORN futures were slightly stronger on Tuesday, also due to planting being behind pace.

The USDA reported 67 per cent of corn is in the ground, while the five-year average is 96 per cent planted.

Brazil’s second corn crop is expected to reach 70.2 million tonnes, an increase of 2.5 per cent. Brazil’s corn exports are set to increase by one million tonnes at 33.0 million tonnes this year.

WHEAT futures were weaker on Tuesday, with planting getting close to completion.

The USDA said spring wheat planting is 93 per cent finished; only three points back of the five-year average. Winter wheat nation-wide was rated as 64 per cent good to excellent condition.

SovEcon downgraded its estimate for Russia’s wheat crop in 2019 by 726,000 tonnes at 75.659 million tonnes, despite an increase in acres planted. Dry conditions are likely to reduce yields.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 23 cents at US$53.48 per barrel.

In the afternoon, the Canadian dollar was trading around US74.55 cents, up from 74.24 cents the previous trading day. The U.S. dollar was C$1.3414.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 19 453.10s -2.20 -0.48%

Canola Nov 19 466.30s -2.30 -0.49%

Canola Jan 20 472.40s -1.90 -0.40%

Canola Mar 20 477.60s -1.30 -0.27%

Canola May 20 482.00s -1.50 -0.31%

 

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

Soybean Jul 19 881-6s +2-6 +0.31%

Soybean Aug 19 888-6s +3-0 +0.34%

Soybean Sep 19 896-0s +3-0 +0.34%

Soybean Nov 19 909-2s +3-0 +0.33%

Soybean Jan 20 921-6s +3-6 +0.41%

 

Soybean Meal Jul 19 321.0s +0.5 +0.16%

Soybean Meal Aug 19 322.7s +0.7 +0.22%

Soybean Meal Sep 19 324.5s +0.7 +0.22%

 

Soybean Oil Jul 19 27.49s +0.15 +0.55%

Soybean Oil Aug 19 27.63s +0.15 +0.55%

Soybean Oil Sep 19 27.75s +0.13 +0.47%

 

Corn Jul 19 425-2s +1-0 +0.24%

Corn Sep 19 434-6s +1-0 +0.23%

Corn Dec 19 444-0s +2-2 +0.51%

Corn Mar 20 452-6s +2-0 +0.44%

Corn May 20 455-4s +2-0 +0.44%

 

Oats Jul 19 304-0s -1-2 -0.41%

Oats Sep 19 291-4s -1-4 -0.51%

Oats Dec 19 280-2s unch unch

Oats Mar 20 280-0s -1-0 -0.36%

Oats May 20 277-4s -1-0 -0.36%

 

Wheat Jul 19 507-2s -12-4 -2.41%

Wheat Sep 19 514-6s -11-2 -2.14%

Wheat Dec 19 528-4s -10-2 -1.90%

Wheat Mar 20 541-4s -9-6 -1.77%

Wheat May 20 548-2s -8-0 -1.44%

 

Minneapolis

Spring Wheat Jul 19 560-4s -3-0 -0.53%

Spring Wheat Sep 19 570-0s -2-6 -0.48%

Spring Wheat Dec 19 583-6s -0-4 -0.09%

Spring Wheat Mar 20 597-4s +1-0 +0.17%

Spring Wheat May 20 605-0s +2-0 +0.33%

 

Kansas City

Hard Red Wheat Jul 19 468-4s -18-2 -3.75%

Hard Red Wheat Sep 19 481-4s -17-2 -3.46%

Hard Red Wheat Dec 19 503-4s -15-0 -2.89%

Hard Red Wheat Mar 20 523-4s -13-4 -2.51%

Hard Red Wheat May 20 535-6s -10-2 -1.88%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 19 107.550s +0.775 +0.73%

Live Cattle Aug 19 104.050s +1.250 +1.22%

Live Cattle Oct 19 104.800s +1.275 +1.23%

 

Feeder Cattle Aug 19 137.450s +3.950 +2.96%

Feeder Cattle Sep 19 137.875s +3.750 +2.80%

Feeder Cattle Oct 19 137.950s +3.425 +2.55%

 

Lean Hogs Jun 19 81.125s -0.450 -0.55%

Lean Hogs Jul 19 85.800s +1.275 +1.51%

Lean Hogs Aug 19 85.475s +0.950 +1.12%

 

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