Canola edges higher Tuesday on bargain buying

ICE Canada canola futures rose on Tuesday for just the second time in 10 sessions, on bargain-buying and a slowdown in technical selling.

Higher Chicago soyoil prices added strength to canola. *

January canola gained $2.60 to $493.80 per tonne.

Most-active March canola rose $2.40 to $501.10.

U.S. soybean futures fell for the ninth time in 10 sessions on technical selling and forecasts for crop-boosting rains in South America.

Corn firmed on short-covering after touching contract lows, but prices remain capped by abundant supplies.

Wheat futures ended mostly lower, with only hard red winter wheat contracts posting small gains on worries about potentially crop damaging weather in the Plains.

Trading was light as investors moved to the sidelines ahead of the year-end holidays.

Grain markets will close early on Friday and remain closed through Monday for the Christmas holiday.

Chart-based selling added pressure to a soybean market already slumping from forecasts for beneficial rains in Brazil and Argentina, both large soy producers.

“A lot of the weakness has been because of rain in Argentina, and there is more rain in the forecast this week. But we’re really doing some major damage to the charts and that is leading to some technical selling,” said Brian Hoops, president of Midwest Market Solutions.

Soybean futures prices climbed above the November high early this month but have since fallen and breached the November low. The bearish technical indicator, known as an outside monthly reversal, is causing traders to square positions or limit long holdings in the market, Hoops said.

Dry conditions and a lack of snow cover in the U.S. Plains wheat belt have put recently planted hard red winter wheat at risk of damage from cold weather, which is expected to strike the region later this week.

Recent price declines in wheat have attracted fresh export interest in U.S. shipments.

U.S. wheat was the cheapest origin grain offered in an Iraqi tender for hard milling wheat.

“We’re starting to see U.S. values become more competitive in the world markets,” said Brian Basting, analyst with Advance Trading.

“But having said that, we’re not the only shop in town for wheat, with plenty of competition from the Black Sea and Europe. And they are now harvesting those crops in Argentina and Australia.”

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 30 cents at US$57.46 per barrel.

In the afternoon, the Canadian dollar was trading around US77.71 cents, down slightly from 77.73 cents the previous trading day. The U.S. dollar was C$1.2868.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 18   493.80s   +2.60   +0.53%

Canola Mar 18   501.10s   +2.40   +0.48%

Canola May 18   509.20s   +2.30   +0.45%

Canola Jul 18   513.00s   +2.30   +0.45%

Canola Nov 18   500.80s   +1.70   +0.34%

 

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 18   956-0s   -5-4   -0.57%

Soybeans Mar 18   966-6s   -5-6   -0.59%

Soybeans May 18   977-6s   -5-4   -0.56%

Soybeans Jul 18   988-2s   -5-2   -0.53%

Soybeans Aug 18   990-2s   -5-2   -0.53%

 

Soybean Meal Jan 18   315.2s   -3.3   -1.04%

Soybean Meal Mar 18   319.1s   -3.4   -1.05%

Soybean Meal May 18   322.4s   -3.3   -1.01%

 

Soybean Oil Jan 18   33.22s   +0.20   +0.61%

Soybean Oil Mar 18   33.39s   +0.21   +0.63%

Soybean Oil May 18   33.52s   +0.21   +0.63%

 

Corn Mar 18   347-4s   +0-4   +0.14%

Corn May 18   355-6s   +0-4   +0.14%

Corn Jul 18   364-2s   +0-4   +0.14%

Corn Sep 18   371-4s   +0-4   +0.13%

Corn Dec 18   380-6s   +0-6   +0.20%

 

Oats Mar 18   246-4s   -5-0   -1.99%

Oats May 18   252-6s   -5-6   -2.22%

Oats Jul 18   260-6s   -5-4   -2.07%

Oats Sep 18   262-6s   -5-4   -2.05%

Oats Dec 18   256-6s   -5-4   -2.10%

 

Wheat Mar 18   419-4s   -1-0   -0.24%

Wheat May 18   432-6s   -0-6   -0.17%

Wheat Jul 18   446-4s   -0-2   -0.06%

Wheat Sep 18   459-6s   -0-4   -0.11%

Wheat Dec 18   477-4s   unch   unch

 

Minneapolis

Spring Wheat Mar 18   618-2s   -1-0   -0.16%

Spring Wheat May 18   626-2s   -1-0   -0.16%

Spring Wheat Jul 18   631-0s   -0-6   -0.12%

Spring Wheat Sep 18   627-2s   +1-0   +0.16%

Spring Wheat Dec 18   636-2s   unch   unch

 

Kansas City

Hard Red Wheat Mar 18   420-0s   +0-6   +0.18%

Hard Red Wheat May 18   433-0s   +1-2   +0.29%

Hard Red Wheat Jul 18   449-6s   +1-4   +0.33%

Hard Red Wheat Sep 18   464-4s   +1-2   +0.27%

Hard Red Wheat Dec 18   486-2s   +1-0   +0.21%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 17   120.000s   +0.025   +0.02%

Live Cattle Feb 18   120.450s   -0.150   -0.12%

Live Cattle Apr 18   121.475s   -0.550   -0.45%

 

Feeder Cattle Jan 18   145.200s   -2.450   -1.66%

Feeder Cattle Mar 18   143.300s   -1.950   -1.34%

Feeder Cattle Apr 18   143.675s   -1.875   -1.29%

 

Lean Hogs Feb 18   66.900s   -0.500   -0.74%

Lean Hogs Apr 18   71.675s   -0.575   -0.80%

Lean Hogs May 18   76.900s   -0.550   -0.71%

 

 

 

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