Canola drops but wheat up slightly

Winnipeg – ICE Futures canola contracts were weaker on Wednesday, nearing major chart support as bearish technical signals and spillover from the losses in Chicago Board of Trade soybeans weighed on values.

The ongoing trade tensions with China and lack of progress on that front also weighed on values, according to participants.

Intermonth spreading was a feature of the activity, with a majority of the volumes tied to participants rolling out of the nearby May contract.

Statistics Canada releases its first acreage estimates of the year on Wednesday, April 24. Traders generally expect seeded canola area will be down from the 22.8 million acres seeded in 2018, but the extent of the revision remains to be seen.

About 37,591 canola contracts traded on Wednesday, which compares with Tuesday when 37,851 contracts changed hands. Spreading accounted for 27,124 of the contracts trade.

SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, with chart-based speculative selling a feature as prices fell to their lowest levels in six months.

Large U.S. supplies and South American harvest pressure contributed to the declines, with little fresh supportive news on the other side to temper the declines.

Brazil’s Celeres raised their estimate on the size of the Brazilian soybean crop to 115.8 million tonnes, which was up two million from an earlier forecast.

The lack of any significant progress on trade talks between the United States and China also weighed on values.

CORN futures held near unchanged. Weather forecasts across the Midwest are calling for above average temperatures over the next two weeks, but also above average precipitation.

Corn seeding is running behind schedule, and the chance of more delays provided underlying support.

However, large old crop supplies remained a bearish influence in the background.

Weekly U.S. ethanol production was up slightly in the latest weekly report, at just over a million barrels per day.

WHEAT futures were steady to higher, with the largest gains in Kansas City hard red winter wheat. The markets were seeing some consolidation after hitting fresh contract lows on Tuesday.

Ample world supplies remain a bearish influence on the wheat market, although improving US export sales provided some support.

Concerns over seeding delays for spring wheat were also supportive.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 32 cents at US$63.73 per barrel.

In the afternoon, the Canadian dollar was trading around US74.92 cents, up from 74.84 cents the previous trading day. The U.S. dollar was C$1.3348

 

Winnipeg ICE Futures Canada dollars per tonne.

Name / Contract Last Change % Change

Canola May 19 451.20s -3.30 -0.73%

Canola Jul 19 458.70s -3.50 -0.76%

Canola Nov 19 470.40s -3.50 -0.74%

Canola Jan 20 477.10s -3.50 -0.73%

Canola Mar 20 482.70s -3.50 -0.72%

 

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 May 19 879-0s -9-0 -1.01%

Soybean Jul 19 892-4s -9-2 -1.03%

Soybean Aug 19 898-4s -9-0 -0.99%

Soybean Sep 19 903-4s -8-6 -0.96%

Soybean Nov 19 912-2s -8-6 -0.95%

 

Soybean Meal May 19 303.9s -2.6 -0.85%

Soybean Meal Jul 19 307.6s -2.5 -0.81%

Soybean Meal Aug 19 308.8s -2.6 -0.83%

 

Soybean Oil May 19 28.46s -0.26 -0.91%

Soybean Oil Jul 19 28.78s -0.24 -0.83%

Soybean Oil Aug 19 28.94s -0.23 -0.79%

 

Corn May 19 358-2s -0-6 -0.21%

Corn Jul 19 367-0s -0-6 -0.20%

Corn Sep 19 375-0s -1-0 -0.27%

Corn Dec 19 386-6s -0-6 -0.19%

Corn Mar 20 400-6s -0-6 -0.19%

 

Oats May 19 299-6s +5-0 +1.70%

Oats Jul 19 279-4s +1-4 +0.54%

Oats Sep 19 269-2s +1-0 +0.37%

Oats Dec 19 258-0s -1-4 -0.58%

Oats Mar 20 250-4s -1-4 -0.60%

 

Wheat May 19 447-0s +2-0 +0.45%

Wheat Jul 19 450-2s +1-6 +0.39%

Wheat Sep 19 457-0s +0-4 +0.11%

Wheat Dec 19 474-2s unch unch

Wheat Mar 20 491-4s unch unch

 

Minneapolis

Spring Wheat May 19 527-4s +0-2 +0.05%

Spring Wheat Jul 19 531-2s +0-6 +0.14%

Spring Wheat Sep 19 538-6s +1-6 +0.33%

Spring Wheat Dec 19 553-2s +1-4 +0.27%

Spring Wheat Mar 20 567-0s +0-2 +0.04%

 

Kansas City

Hard Red Wheat May 19 420-4s +3-4 +0.84%

Hard Red Wheat Jul 19 426-2s +3-6 +0.89%

Hard Red Wheat Sep 19 434-6s +2-4 +0.58%

Hard Red Wheat Dec 19 456-4s +1-0 +0.22%

Hard Red Wheat Mar 20 477-4s +0-4 +0.10%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle   Apr 19 126.925s -0.225 -0.18%

Live Cattle   Jun 19 122.375s -0.075 -0.06%

Live Cattle   Aug 19 119.550s +0.225 +0.19%

 

Feeder Cattle   Apr 19 145.325s -0.350 -0.24%

Feeder Cattle   May 19 150.600s -0.600 -0.40%

Feeder Cattle   Aug 19 160.450s +0.250 +0.16%

 

Lean Hogs   May 19 88.925s -0.050 -0.06%

Lean Hogs   Jun 19 96.125s -1.000 -1.03%

Lean Hogs   Jul 19 100.625s -0.550 -0.54%

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