Canola drops for seventh day after Trump’s tariff tweet

WINNIPEG – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Monday, for a seventh consecutive session of losses.
ICE and the Chicago Board of Trade dropped today following a tweet by U.S. President Donald Trump, in that he would hike tariffs on imports from China. Trump accused China of dragging out trade negotiations and unless the pace picked-up he would slap on more tariffs.

A Winnipeg-based trader stated the markets had “a giant overreaction.” However, the lack other fresh news, the ongoing Canada/China dispute, the strong likelihood of more soybean acres in the U.S. and the huge South American soybean harvest continued to weigh on values.

On Tuesday, Statistics Canada will release its report on grain and oilseed stocks as of March 31. Expectations are for the report to have little impact on prices.

There were 22,218 contracts traded on Monday, which compares with Friday when 14,952 contracts changed hands.

SOYBEAN, soyoil and soymeal futures at the Chicago Board of Trade (CBOT) were all weaker on Monday, as a tweet by United States President Donald Trump had a negative effect on prices.

In a May 5 tweet, Trump accused China of dragging out trade negotiations between the two countries and he threatened to hike tariffs on Chinese imports from 10 to 25 per cent. Also, Trump said he would impose new tariffs on Chinese imports that so far have been exempt.

Soybean bids for July and November lost about 12 U.S. cents per bushel on Monday. Soyoil was down 0.22 of a cent and soymeal slipped US$1.60 per hundredweight.

Abiove revised its forecast of the Brazilian soybean harvest upward to by 0.6 per cent to 117.6 million tonnes and with a carryout of 5.63 million tonnes.

The European Union has imported more than 12.4 million tonnes of soybeans as of May 5, for a nine per cent increase year-over-year.

CORN futures were down on Monday, having been caught in the collateral damage from soybeans. July corn dropped 6.5 cents per bushel.

The U.S. Department of Agriculture is scheduled to release its planting progress report Monday afternoon. Market expectations are for an increase to 25 per cent complete for corn from the previous week’s 15 per cent.

EU corn imports dropped 38 per cent year-over-year, at 20.5 million tonnes.

WHEAT futures were mixed on Monday, with the July contracts Minneapolis and Chicago both losing 0.75 of a cent per bushel. The July contract in Kansas City picked up 1.5 cents per bushel.

Ahead of the USDA’s report, expectations are for spring wheat planting to reach 24 per cent complete.

EU soft wheat exports are down four per cent at about 17.1 million tonnes.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 31 cents at US$62.25 per barrel.

In the afternoon, the Canadian dollar was trading around US74.32 cents, up from 74.47 cents the previous trading day. The U.S. dollar was C$1.3429.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 19 430.80s +0.90 +0.21%

Canola Jul 19 432.40s -0.20 -0.05%

Canola Nov 19 445.90s -1.00 -0.22%

Canola Jan 20 452.20s -1.20 -0.26%

Canola Mar 20 457.90s -1.50 -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

Soybean May 19 817-4s -12-0 -1.45%

Soybean Jul 19 830-2s -12-0 -1.42%

Soybean Aug 19 836-4s -12-2 -1.44%

Soybean Sep 19 842-2s -11-6 -1.38%

Soybean Nov 19 853-0s -11-2 -1.30%

 

Soybean Meal May 19 291.8s -1.8 -0.61%

Soybean Meal Jul 19 296.6s -1.6 -0.54%

Soybean Meal Aug 19 297.9s -1.5 -0.50%

 

Soybean Oil May 19 26.84s -0.23 -0.85%

Soybean Oil Jul 19 27.13s -0.22 -0.80%

Soybean Oil Aug 19 27.27s -0.22 -0.80%

 

Corn May 19 355-6s -7-2 -2.00%

Corn Jul 19 364-2s -6-4 -1.75%

Corn Sep 19 371-6s -6-0 -1.59%

Corn Dec 19 382-2s -5-4 -1.42%

Corn Mar 20 395-0s -4-6 -1.19%

 

Oats May 19 295-4s -5-6 -1.91%

Oats Jul 19 277-4s -6-4 -2.29%

Oats Sep 19 266-2s -3-6 -1.39%

Oats Dec 19 256-6s -1-6 -0.68%

Oats Mar 20 255-0s +1-4 +0.59%

 

Wheat May 19 428-0s unch unch

Wheat Jul 19 437-2s -0-6 -0.17%

Wheat Sep 19 445-4s -1-2 -0.28%

Wheat Dec 19 461-4s -1-6 -0.38%

Wheat Mar 20 478-0s -1-4 -0.31%

 

Minneapolis

Spring Wheat May 19 499-0s -0-4 -0.10%

Spring Wheat Jul 19 514-2s -0-6 -0.15%

Spring Wheat Sep 19 522-2s -0-6 -0.14%

Spring Wheat Dec 19 536-0s -0-2 -0.05%

Spring Wheat Mar 20 550-6s +0-2 +0.05%

 

Kansas City

Hard Red Wheat May 19 394-2s +1-2 +0.32%

Hard Red Wheat Jul 19 403-0s +1-4 +0.37%

Hard Red Wheat Sep 19 414-0s +1-4 +0.36%

Hard Red Wheat Dec 19 436-0s +1-2 +0.29%

Hard Red Wheat Mar 20 458-4s +1-2 +0.27%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 19 112.275s -1.150 -1.01%

Live Cattle Aug 19 108.400s -0.750 -0.69%

Live Cattle Oct 19 108.875s -0.800 -0.73%

 

Feeder Cattle May 19 136.025s -1.125 -0.82%

Feeder Cattle Aug 19 144.350s -2.025 -1.38%

Feeder Cattle Sep 19 145.550s -1.600 -1.09%

 

Lean Hogs May 19 82.375s -2.975 -3.49%

Lean Hogs Jun 19 89.750s -3.000 -3.23%

Lean Hogs Jul 19 92.675s -3.000 -3.14%

 

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