The ICE Futures canola platform closed weaker, retreating from yesterday’s rally.
Chicago Board of Trade (CBOT) soybean, oil and meal contracts all finished the day stronger. Soybeans found support from reports that China and the United States talked over the phone about trade. U.S. President Donald Trump also tweeted saying there had been “very productive conversation going on with China,” and people should “watch for some important announcements.”
The United States Department of Agriculture (USDA) released its latest supply and demand report today and it was deemed mostly uneventful for trade. Brazil’s soybean production estimate was raised in the report. The USDA pegged Brazil’s soybean crop at a record 122 million tonnes, which is up from the November estimate by 1.5 million tonnes.
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Forecasts in Brazil are calling for hotter and drier weather. The soybean crop is off to a good start and this change in weather shouldn’t affect it much. This coupled with the USDA production estimate weighed on canola contracts.
About 27,727 canola contracts traded, which compares with Monday when 32,757 contracts changed hands. Spreading accounted for 20,894 of the contracts traded.
The USDA raised its global soybean ending stocks forecast for 2018/19 to 115.33 million tonnes, up from an earlier estimate of 112.08 million.
U.S. soybean ending stocks were left unchanged in the USDA report at 26.0 million tonnes, which is more than double last year’s carryout of 11.9 million tonnes.
CBOT corn prices finished the day stronger.
The USDA raised world corn ending stocks to 308.80 million tonnes, up from 307.51 million last month. Production estimates for Brazil, Argentina and the U.S. were all left unchanged.
China is set to potentially triple its current ethanol production capacity by 2020. Imports from the U.S. and/or Brazil are expected to be needed to meet blending requirements.
Wheat futures in the U.S. finished the day mixed.
The USDA also raised world wheat ending stocks for 2018/19 to 268.81 million tonnes, which is up from a previous estimate of 266.71 million. However, the carryout still comes in below last year’s 279.94 million tonnes.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up 65 cents at US$51.65 per barrel.
In the afternoon, the Canadian dollar was trading around US74.62 cents, down from 74.74 cents the previous trading day. The U.S. dollar was C$1.3402.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Jan 19 485.50s -2.10 -0.43%
Canola Mar 19 491.30s -2.10 -0.43%
Canola May 19 498.60s -2.20 -0.44%
Canola Jul 19 504.90s -2.20 -0.43%
Canola Nov 19 495.50s -2.60 -0.52%
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 Jan 19 915-0s +5-2 +0.58%
Soybeans Mar 19 928-2s +5-4 +0.60%
Soybeans May 19 941-0s +5-4 +0.59%
Soybeans Jul 19 952-6s +5-4 +0.58%
Soybeans Aug 19 956-6s +5-4 +0.58%
Soybean Meal Dec 18 308.9s +1.0 +0.32%
Soybean Meal Jan 19 310.9s +0.9 +0.29%
Soybean Meal Mar 19 314.7s +0.8 +0.25%
Soybean Oil Dec 18 28.71s +0.19 +0.67%
Soybean Oil Jan 19 28.96s +0.20 +0.70%
Soybean Oil Mar 19 29.21s +0.19 +0.65%
Corn Dec 18 375-0s +0-6 +0.20%
Corn Mar 19 384-6s +0-6 +0.20%
Corn May 19 392-2s +1-0 +0.26%
Corn Jul 19 398-6s +1-0 +0.25%
Corn Sep 19 400-0s +1-4 +0.38%
Oats Dec 18 285-4s +3-0 +1.06%
Oats Mar 19 292-0s +3-0 +1.04%
Oats May 19 292-6s +1-4 +0.52%
Oats Jul 19 289-2s +2-4 +0.87%
Oats Sep 19 276-2s +2-4 +0.91%
Wheat Dec 18 509-6s -5-0 -0.97%
Wheat Mar 19 521-0s -4-2 -0.81%
Wheat May 19 528-4s -3-0 -0.56%
Wheat Jul 19 536-0s -1-2 -0.23%
Wheat Sep 19 545-0s -0-6 -0.14%
Minneapolis
Spring Wheat Dec 18 580-4s +0-4 +0.09%
Spring Wheat Mar 19 575-2s unch unch
Spring Wheat May 19 581-0s +0-6 +0.13%
Spring Wheat Jul 19 587-2s +1-2 +0.21%
Spring Wheat Sep 19 594-6s +1-4 +0.25%
Kansas City
Hard Red Wheat Dec 18 477-2s -5-4 -1.14%
Hard Red Wheat Mar 19 504-6s -5-4 -1.08%
Hard Red Wheat May 19 516-6s -4-4 -0.86%
Hard Red Wheat Jul 19 527-4s -3-2 -0.61%
Hard Red Wheat Sep 19 540-6s -3-4 -0.64%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Dec 18 118.375s +0.800 +0.68%
Live Cattle Feb 19 122.150s +0.950 +0.78%
Live Cattle Apr 19 124.525s +0.925 +0.75%
Feeder Cattle Jan 19 147.300s +2.275 +1.57%
Feeder Cattle Mar 19 144.900s +2.150 +1.51%
Feeder Cattle Apr 19 145.275s +2.000 +1.40%
Lean Hogs Dec 18 54.450s -0.275 -0.50%
Lean Hogs Feb 19 65.200s -1.625 -2.43%
Lean Hogs Apr 19 71.450s -0.625 -0.87%
