Canola drops ahead of USDA report

Winnipeg – Canola contracts on the ICE Futures platform recorded modest losses Thursday, as traders booked profits.

Tomorrow, the United States Department of Agriculture is scheduled to release its monthly supply and demand estimates, which many traders are expecting will be a bearish one for oilseeds in general.

Ideas canola was overbought weighed on the market, setting the stage for corrective action before the close.

Crush margins remain under pressure and some larger players are waiting for new crop canola to come on line before they buy.

However, temperatures in excess of 30 C are expected in parts of Saskatchewan and Alberta today, creating more stress on canola plants.

Slow farmer selling helped prop up prices. About 11,285 canola contracts traded, which compares with Wednesday when 18,740 contracts changed hands. Spreading accounted for 1,902 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Soybean futures on the Chicago Board of Trade corrected lower Thursday ahead of tomorrow’s supply and demand estimates from the United States Department of Agriculture.

China released more details on the tariffs it will be slapping down on imports of U.S. goods, which threw some uncertainty into the market.

Dry weather is expected over the next week for the U.S. Plains, which was mildly supportive for values.

From a technical point of view, soybeans were running into resistance at the 50-day moving average.

A survey by the Dow Jones put this year’s corn crop at 14.42 billion bushels with a yield of 176.3 bushels an acre.

Weekly export sales pegged old crop exports at 555,000 tonnes, which was somewhere in the middle of trader’s expectations.

Hot weather is making its presence felt in the U.S. Corn Belt, which was stressing the crop.

Chicago wheat futures suffered losses in profit-taking.

Most analysts expect the U.S. wheat carryout to drop 24 million bushels in tomorrow’s report.

Weakness in the Russian ruble was helping make Russian exports more competitive.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 13 cents at US$66.81 per barrel.

In the afternoon, the Canadian dollar was trading around US76.69 cents, up from 76.62 cents the previous trading day. The U.S. dollar was C$1.3040.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 18 508.70s -2.00 -0.39%

Canola Jan 19 513.90s -2.30 -0.45%

Canola Mar 19 518.80s -2.30 -0.44%

Canola May 19 523.00s -1.80 -0.34%

Canola Jul 19 524.10s -1.50 -0.29%

 

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 18 887-6s -6-0 -0.67%

Soybeans Sep 18 893-0s -6-6 -0.75%

Soybeans Nov 18 904-0s -6-4 -0.71%

Soybeans Jan 19 915-4s -6-2 -0.68%

Soybeans Mar 19 925-0s -6-2 -0.67%

 

Soybean Meal Aug 18 334.0s -3.1 -0.92%

Soybean Meal Sep 18 332.6s -2.9 -0.86%

Soybean Meal Oct 18 333.4s -2.6 -0.77%

 

Soybean Oil Aug 18 28.42s -0.03 -0.11%

Soybean Oil Sep 18 28.55s -0.04 -0.14%

Soybean Oil Oct 18 28.65s -0.05 -0.17%

 

Corn Sep 18 369-2s -2-0 -0.54%

Corn Dec 18 382-6s -2-2 -0.58%

Corn Mar 19 394-0s -2-0 -0.51%

Corn May 19 400-6s -1-6 -0.43%

Corn Jul 19 406-2s -1-6 -0.43%

 

Oats Sep 18 261-4s -2-2 -0.85%

Oats Dec 18 270-6s -2-2 -0.82%

Oats Mar 19 275-6s -2-0 -0.72%

Oats May 19 278-0s -2-0 -0.71%

Oats Jul 19 281-0s -2-0 -0.71%

 

Wheat Sep 18 564-4s -5-4 -0.96%

Wheat Dec 18 586-4s -4-6 -0.80%

Wheat Mar 19 607-0s -4-4 -0.74%

Wheat May 19 614-6s -5-0 -0.81%

Wheat Jul 19 604-2s -5-0 -0.82%

 

Minneapolis

Spring Wheat Sep 18 629-6s -3-0 -0.47%

Spring Wheat Dec 18 647-0s -1-6 -0.27%

Spring Wheat Mar 19 657-4s -1-6 -0.27%

Spring Wheat May 19 663-2s +0-2 +0.04%

Spring Wheat Jul 19 663-4s -0-6 -0.11%

 

Kansas City

Hard Red Wheat Sep 18 578-4s -5-6 -0.98%

Hard Red Wheat Dec 18 604-2s -6-4 -1.06%

Hard Red Wheat Mar 19 624-2s -5-4 -0.87%

Hard Red Wheat May 19 634-6s -5-0 -0.78%

Hard Red Wheat Jul 19 626-0s -4-2 -0.67%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Aug 18 108.250s -1.575 -1.43%

Live Cattle Oct 18 109.050s -1.950 -1.76%

Live Cattle Dec 18 112.975s -1.550 -1.35%

 

Feeder Cattle Aug 18 149.350s -1.300 -0.86%

Feeder Cattle Sep 18 149.025s -0.725 -0.48%

Feeder Cattle Oct 18 149.200s -0.775 -0.52%

 

Lean Hogs Aug 18 54.975s +0.175 +0.32%

Lean Hogs Oct 18 51.400s +3.000 +6.20%

Lean Hogs Dec 18 47.325s +2.950 +6.65%

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