Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were stronger on Tuesday, finding some support from advances in Chicago Board of Trade soyoil.
Bullish chart-signals contributed to the gains, although canola ran into some resistance to the upside as values neared their best levels of the past month.
The Canadian dollar was also stronger on the day, which tempered the upside potential in canola and caused crush margins to weaken.
Increased farmer hedges and a lack of significant commercial demand also put some pressure on values.
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About 20,904 canola contracts traded on Tuesday, which compares with Monday when 21,206 contracts changed hands. Spreading accounted for 12,348 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, with chart-based buying a feature as the market saw a technical recovery after yesterday’s losses.
The 165 million bushels of soybeans crushed in the United States in February was a new record for the month, adding to the firmer tone in the futures.
Declining production estimates out of Argentina and the smaller-than-expected soybean acres in last week’s USDA prospective plantings report remained supportive as well.
However, ample old crop stocks and mounting concerns over a trade dispute between the U.S. and China kept a lid on the upside.
WHEAT futures posted sizeable gains, with Kansas City hard red winter wheat leading to the upside.
The U.S. winter wheat crop was rated 32 per cent good-to-excellent in the latest USDA report, which came in below trade expectations and compares to this time a year-ago when roughly half of the country’s winter wheat was in the top two categories.
Meanwhile, 30 per cent of the U.S. winter wheat was rated poor-to-very-poor; well above the 14 per cent at this time last year.
Poor weather across the Plains was also supportive for prices, with temperatures too hot in the south and too cold in the north.
CORN futures followed wheat higher. Corn seeding in the southern U.S. is moving forward at a steady pace, according to the latest USDA report, with Texas and Mississippi both running well ahead of average for this time of year.
However, cool and wet conditions to the north are expected to cause seeding delays in the eastern Corn Belt.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up 50 cents at US$63.51 per barrel.
In the afternoon, the Canadian dollar was trading around US78.09 cents, down from 77.43 cents the previous trading day. The U.S. dollar was C$1.2806.
Winnipeg ICE Futures Canada dollars per tonne.
Canola May 18 526.50s +1.70 +0.32%
Canola Jul 18 532.00s +1.60 +0.30%
Canola Nov 18 519.50s +1.00 +0.19%
Canola Jan 19 522.80s +0.90 +0.17%
Canola Mar 19 523.90s +0.60 +0.11%
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 May 18 1038-0s +2-4 +0.24%
Soybeans Jul 18 1049-2s +3-0 +0.29%
Soybeans Aug 18 1051-4s +2-4 +0.24%
Soybeans Sep 18 1045-4s +2-2 +0.22%
Soybeans Nov 18 1042-2s +2-2 +0.22%
Soybean Meal May 18 380.0s +2.7 +0.72%
Soybean Meal Jul 18 383.3s +2.9 +0.76%
Soybean Meal Aug 18 380.9s +2.4 +0.63%
Soybean Oil May 18 32.34s +0.30 +0.94%
Soybean Oil Jul 18 32.62s +0.32 +0.99%
Soybean Oil Aug 18 32.75s +0.32 +0.99%
Corn May 18 388-4s +1-2 +0.32%
Corn Jul 18 397-2s +1-4 +0.38%
Corn Sep 18 404-2s +1-4 +0.37%
Corn Dec 18 412-2s +1-0 +0.24%
Corn Mar 19 419-0s +0-6 +0.18%
Oats May 18 232-4s +0-6 +0.32%
Oats Jul 18 240-2s -0-6 -0.31%
Oats Sep 18 245-2s -1-2 -0.51%
Oats Dec 18 252-2s -3-0 -1.18%
Oats Mar 19 258-2s -5-6 -2.18%
Wheat May 18 457-4s +11-2 +2.52%
Wheat Jul 18 474-0s +10-4 +2.27%
Wheat Sep 18 490-6s +10-0 +2.08%
Wheat Dec 18 512-4s +10-4 +2.09%
Wheat Mar 19 528-2s +10-2 +1.98%
Minneapolis
Spring Wheat May 18 583-0s +9-4 +1.66%
Spring Wheat Jul 18 592-2s +9-6 +1.67%
Spring Wheat Sep 18 598-6s +9-4 +1.61%
Spring Wheat Dec 18 611-6s +9-4 +1.58%
Spring Wheat Mar 19 623-6s +9-4 +1.55%
Kansas City
Hard Red Wheat May 18 484-6s +17-2 +3.69%
Hard Red Wheat Jul 18 503-2s +16-4 +3.39%
Hard Red Wheat Sep 18 521-6s +15-6 +3.11%
Hard Red Wheat Dec 18 545-4s +14-6 +2.78%
Hard Red Wheat Mar 19 560-2s +14-4 +2.66%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 18 111.975s -0.425 -0.38%
Live Cattle Jun 18 99.625s -1.325 -1.31%
Live Cattle Aug 18 99.900s -0.700 -0.70%
Feeder Cattle Apr 18 130.525s -1.350 -1.02%
Feeder Cattle May 18 130.975s -1.400 -1.06%
Feeder Cattle Aug 18 137.175s -1.775 -1.28%
Lean Hogs Apr 18 51.675s -2.600 -4.79%
Lean Hogs May 18 61.200s -3.625 -5.59%
Lean Hogs Jun 18 71.650s -1.900 -2.58%
