Canola drops amidst sagging oil complex

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished lower on Monday, following pricing trends set last week.

Canola values were dragged down by lower prices for Malaysian palm oil and soybeans on the Chicago Board of Trade. One trader said “the shine has come off of the vegetable oil complex.” Canola prices have been lower in order to remain globally competitive.

The Canadian dollar has remained steady recently, at around 75.2 U.S. cents, providing some support to canola values.

Trade relations remain strained between China and Canada. Recently, China’s ambassador to Canada visited Huawei executive Meng Wanzhou. The ambassador has called for Canada to release Meng. It would appear that China won’t be importing canola directly from Canada any time soon, though there are reports that Canadian canola has come into China via the United Arab Emirates.

On Monday, 24,313 contracts were traded, which compares with Friday when 14,688 contracts changed hands. Spreading accounted for 14,318 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Monday.

Export data from the United States Department of Agriculture (USDA) was mostly positive. Last week, 1.5 million tonnes of soybeans were exported. Over a million tonnes were shipped to China.

U.S. President Donald Trump said signing legislation in support of protestors in Hong Kong has not helped trade talks with mainland China. He said China still wants a deal with the U.S., but did not indicate when a deal might be finalized. Some U.S. officials have said a deal could possibly happen before the end of the year. Phase one of the trade deal was supposed to be signed in November.

CORN futures finished slightly higher, despite reports indicating perpetually lower export rates. Total exports so far for the marketing year are around 6 million tonnes, which compares to this time last year, when they were around 14 million tonnes.

WHEAT futures were lower on Monday. Export sales were lower last week, at around 245,000 tonnes.

The Australian government has cut the expected wheat production for 2019/2020 by 18 per cent to 15.85 million tonnes, due to prolonged dry weather.

Also, France and the United Kingdom expected acreage for next year’s wheat crops to be lower, due to a particularly rainy fall. The heavy autumn rain came after an unexpectedly dry summer hampered rapeseed yields and delayed winter wheat and barley planting.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 79 cents at US$55.96 per barrel.

In the afternoon, the Canadian dollar was trading around US75.20 cents, down from 75.25 cents the previous trading day. The U.S. dollar was C$1.3297.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 20 452.10s -4.50 -0.99%

Canola Mar 20 461.30s -4.40 -0.94%

Canola May 20 469.50s -4.30 -0.91%

Canola Jul 20 475.70s -3.90 -0.81%

Canola Nov 20 477.80s -3.40 -0.71%

 

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 Jan 20 870-4s -6-2 -0.71%

Soybean Mar 20 885-2s -6-0 -0.67%

Soybean May 20 900-2s -5-4 -0.61%

Soybean Jul 20 913-4s -4-6 -0.52%

Soybean Aug 20 918-4s -4-4 -0.49%

 

Soybean Meal Dec 19 291.3s +0.4 +0.14%

Soybean Meal Jan 20 293.5s +0.4 +0.14%

Soybean Meal Mar 20 297.0s -0.1 -0.03%

 

Soybean Oil Dec 19 29.96s -0.46 -1.51%

Soybean Oil Jan 20 30.16s -0.42 -1.37%

Soybean Oil Mar 20 30.45s -0.40 -1.30%

 

Corn Dec 19 373-4s +2-2 +0.61%

Corn Mar 20 382-0s +0-6 +0.20%

Corn May 20 386-4s +0-6 +0.19%

Corn Jul 20 390-2s unch unch

Corn Sep 20 387-6s -0-2 -0.06%

 

Oats Dec 19 325-2s +4-0 +1.25%

Oats Mar 20 306-4s -3-2 -1.05%

Oats May 20 302-0s -3-2 -1.06%

Oats Jul 20 291-4s -0-4 -0.17%

Oats Sep 20 277-0s unch unch

 

Wheat Dec 19 543-2s -4-2 -0.78%

Wheat Mar 20 535-2s -6-4 -1.20%

Wheat May 20 539-0s -5-6 -1.06%

Wheat Jul 20 538-6s -4-0 -0.74%

Wheat Sep 20 544-4s -3-2 -0.59%

 

Minneapolis

Spring Wheat Dec 19 489-4s -5-0 -1.01%

Spring Wheat Mar 20 509-6s -4-6 -0.92%

Spring Wheat May 20 519-0s -4-0 -0.76%

Spring Wheat Jul 20 528-4s -4-2 -0.80%

Spring Wheat Sep 20 538-2s -4-2 -0.78%

 

Kansas City

Hard Red Wheat Dec 19 437-2s -1-4 -0.34%

Hard Red Wheat Mar 20 439-2s -7-6 -1.73%

Hard Red Wheat May 20 447-4s -7-4 -1.65%

Hard Red Wheat Jul 20 454-0s -7-2 -1.57%

Hard Red Wheat Sep 20 462-4s -6-4 -1.39%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 19 120.750s -0.450 -0.37%

Live Cattle Feb 20 125.800s -0.400 -0.32%

Live Cattle Apr 20 126.200s -0.175 -0.14%

 

Feeder Cattle Jan 20 142.150s -0.125 -0.09%

Feeder Cattle Mar 20 143.025s unch unch

Feeder Cattle Apr 20 144.975s unch unch

 

Lean Hogs Dec 19 60.350s -1.675 -2.70%

Lean Hogs Feb 20 66.150s -2.025 -2.97%

Lean Hogs Apr 20 72.575s -1.350 -1.83%

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