Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were weaker on Thursday, with the largest losses in the old crop July contract as participants bailed out of the front month.
July canola started the day trading at a premium of about C$11 to November, but settled at even money. With ample old crop supplies and expectations for a large crop this year, a trader said there was little reason for old crop canola to still be trading at a premium to the new crop.
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Chicago Board of Trade corn futures extended slight gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.
Strength in the Canadian dollar, which was up by about half a cent relative to its United States counterpart, contributed to the softer tone in canola.
Forecasts calling for some much needed rain in dry areas of Western Canada were also bearish. However, there are still plenty of areas of concern across the Prairies.
Statistics Canada and the U.S. Department of Agriculture both release acreage estimates on Friday, and positioning ahead of the reports accounted for some of the activity.
About 26,828 canola contracts traded, which compares with Wednesday when 28,670 contracts changed hands. Spreading was a feature, accounting for 23,560 of the contracts traded.
SOYBEAN futures ended lower on Thursday after trading to both sides of unchanged, as traders adjusted positions ahead of Friday’s United States Department of Agriculture acreage and quarterly stocks reports.
Average pre-report guesses are for an increase in U.S. soybean seedings by about a million acres from the earlier estimate, with quarterly stocks also up from the year-ago level.
Weekly U.S. soybean export sales of about 360,000 tonnes for old crop were at the lower end of trade expectations. However, new crop business topped trade guesses at about 640,000 tonnes.
While crop conditions remain reasonably favourable across the Midwest, some areas are starting to look too wet, with more moisture in the forecasts.
CORN ended lower on the day, with pre-report positioning the feature as traders expect to see large stocks and an upward revision to U.S. corn acres.
Weekly U.S. corn export sales of about 850,000 tonnes for old crop and 630,000 tonnes for new crop came in at the higher end of trade guesses, providing some support.
WHEAT futures were mixed, with losses in the winter wheats and a firmer tone in Minneapolis spring wheat.
Seasonal harvest pressure, improving spring wheat crop conditions, and bearish technical signals all weighed on wheat. Although, weather concerns in some wheat growing regions of the world provided some support.
Weekly U.S. wheat export sales topped trade expectations at 563,700 tonnes, helping limit the losses.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up 69 cents at US$73.45 per barrel.
In the afternoon, the Canadian dollar was trading around US75.44 cents, up from 74.80 cents the previous trading day. The U.S. dollar was C$1.3256.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Jul 18 510.40s -13.30 -2.54%
Canola Nov 18 510.40s -2.50 -0.49%
Canola Jan 19 516.20s -2.10 -0.41%
Canola Mar 19 519.00s -1.50 -0.29%
Canola May 19 520.40s -1.70 -0.33%
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 Jul 18 861-2s -6-2 -0.72%
Soybeans Aug 18 866-6s -6-2 -0.72%
Soybeans Sep 18 872-4s -6-0 -0.68%
Soybeans Nov 18 883-4s -5-4 -0.62%
Soybeans Jan 19 892-4s -5-4 -0.61%
Soybean Meal Jul 18 331.4s -2.5 -0.75%
Soybean Meal Aug 18 330.7s -1.6 -0.48%
Soybean Meal Sep 18 331.1s -0.9 -0.27%
Soybean Oil Jul 18 29.01s unch unch
Soybean Oil Aug 18 29.13s unch unch
Soybean Oil Sep 18 29.25s unch unch
Corn Jul 18 345-0s -7-4 -2.13%
Corn Sep 18 354-2s -7-4 -2.07%
Corn Dec 18 366-0s -7-2 -1.94%
Corn Mar 19 375-6s -7-0 -1.83%
Corn May 19 382-2s -7-2 -1.86%
Oats Jul 18 243-0s -11-0 -4.33%
Oats Sep 18 237-4s -3-2 -1.35%
Oats Dec 18 237-4s -7-2 -2.96%
Oats Mar 19 241-4s -7-2 -2.91%
Oats May 19 243-6s -7-2 -2.89%
Wheat Jul 18 479-4s unch unch
Wheat Sep 18 483-4s -5-0 -1.02%
Wheat Dec 18 499-4s -4-2 -0.84%
Wheat Mar 19 515-2s -4-0 -0.77%
Wheat May 19 527-0s -3-6 -0.71%
Minneapolis
Spring Wheat Jul 18 521-4s -5-4 -1.04%
Spring Wheat Sep 18 537-4s -3-6 -0.69%
Spring Wheat Dec 18 555-2s -2-0 -0.36%
Spring Wheat Mar 19 571-0s -2-0 -0.35%
Spring Wheat May 19 581-2s -1-6 -0.30%
Kansas City
Hard Red Wheat Jul 18 453-2s -7-0 -1.52%
Hard Red Wheat Sep 18 472-0s -6-2 -1.31%
Hard Red Wheat Dec 18 495-4s -6-0 -1.20%
Hard Red Wheat Mar 19 514-4s -5-2 -1.01%
Hard Red Wheat May 19 527-0s -5-4 -1.03%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Jun 18 108.200s +1.175 +1.10%
Live Cattle Aug 18 103.725s +1.000 +0.97%
Live Cattle Oct 18 107.025s +0.875 +0.82%
Feeder Cattle Aug 18 146.825s +1.050 +0.72%
Feeder Cattle Sep 18 147.375s +0.900 +0.61%
Feeder Cattle Oct 18 147.275s +0.800 +0.55%
Lean Hogs Jul 18 81.125s +0.900 +1.12%
Lean Hogs Aug 18 75.725s +0.675 +0.90%
Lean Hogs Oct 18 61.425s +0.125 +0.20%
