Canola ends week on uptick

Winnipeg — ICE Futures canola contracts settled with small gains on Friday, as end-of-the-week positioning helped the market move higher for the first time in five days.

Optimism over improving trade relations between the United States and China gave the soybean market in Chicago a boost on Friday, with some of that buying interest spilling into canola.

However, continued strength in the Canadian dollar put some pressure on values. Ample visible supplies in the commercial pipeline and losses in Chicago soyoil also tempered the upside.

Statistics Canada will release its latest stocks report next week Tuesday, showing grain and oilseed supplies in the country as of Dec. 31. The numbers should help confirm earlier production estimates while also providing a sense of usage to date.

About 17,697 canola contracts traded on Friday, which compares with Thursday when 20,659 contracts changed hands. Spreading accounted for 9,186 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Friday amid increasing optimism over trade relations between the United States and China. Negotiations this week reportedly led to a promise from China that it would buy another five million tonnes of U.S. soybeans.

However, soybeans settled well off their session highs, as traders await confirmation of actual business beyond the headlines.

While weather concerns in parts of Brazil were also supportive, the advancing harvest in the South American country did serve to keep a lid on the upside.

CORN futures were also supported by the trade optimism on Friday.

While corn was not mentioned specifically, there are ideas that China could also start buying more U.S. corn if trade relations improve.

Gains in the ethanol market today also provided some spillover support for the renewable-fuel-linked grain.

WHEAT futures were also up on the day, with the largest gains in the Kansas City hard red winter contracts.

Concerns over winterkill in parts of the Midwest following this week’s cold weather provided some support.

However, updated forecasts out of Russia predicting a large wheat crop there next year were somewhat bearish. Consulting agency SovEcon estimated Russia’s 2019 wheat production at 80 million tonnes. That would be up from an earlier forecast and well above the official government estimate of 67 million tonnes.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up $1.47 at US$55.26 per barrel.

In the afternoon, the Canadian dollar was trading around US76.37 cents, up from 76.08 cents the previous trading day. The U.S. dollar was C$1.3095.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 19 482.40s +0.70 +0.15%

Canola May 19 490.40s +0.80 +0.16%

Canola Jul 19 497.70s +0.80 +0.16%

Canola Nov 19 495.50s +1.40 +0.28%

Canola Jan 20 500.40s +1.20 +0.24%

 

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 Mar 19 917-6s +2-4 +0.27%

Soybeans May 19 931-4s +2-2 +0.24%

Soybeans Jul 19 944-2s +2-2 +0.24%

Soybeans Aug 19 949-2s +2-0 +0.21%

Soybeans Sep 19 951-2s +1-6 +0.18%

 

Soybean Meal Mar 19 311.8s +1.8 +0.58%

Soybean Meal May 19 315.8s +1.8 +0.57%

Soybean Meal Jul 19 319.6s +1.8 +0.57%

 

Soybean Oil Mar 19 29.89s -0.28 -0.93%

Soybean Oil May 19 30.21s -0.27 -0.89%

Soybean Oil Jul 19 30.51s -0.28 -0.91%

 

Corn Mar 19 378-2s +1-6 +0.46%

Corn May 19 387-0s +1-6 +0.45%

Corn Jul 19 394-6s +2-0 +0.51%

Corn Sep 19 397-4s +2-0 +0.51%

Corn Dec 19 402-2s +2-2 +0.56%

 

Oats Mar 19 288-4s +6-0 +2.12%

Oats May 19 289-4s +5-2 +1.85%

Oats Jul 19 288-2s +4-4 +1.59%

Oats Sep 19 279-2s +4-4 +1.64%

Oats Dec 19 274-2s +5-4 +2.05%

 

Wheat Mar 19 524-2s +7-6 +1.50%

Wheat May 19 528-2s +6-4 +1.25%

Wheat Jul 19 532-0s +5-0 +0.95%

Wheat Sep 19 539-4s +3-6 +0.70%

Wheat Dec 19 552-0s +2-6 +0.50%

 

Minneapolis

Spring Wheat Mar 19 575-4s +5-4 +0.96%

Spring Wheat May 19 579-2s +5-2 +0.91%

Spring Wheat Jul 19 585-6s +5-0 +0.86%

Spring Wheat Sep 19 591-6s +4-0 +0.68%

Spring Wheat Dec 19 603-2s +3-0 +0.50%

 

Kansas City

Hard Red Wheat Mar 19 508-6s +9-6 +1.95%

Hard Red Wheat May 19 517-2s +8-4 +1.67%

Hard Red Wheat Jul 19 526-0s +7-0 +1.35%

Hard Red Wheat Sep 19 535-0s +5-4 +1.04%

Hard Red Wheat Dec 19 549-4s +4-0 +0.73%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 19 125.450s +0.650 +0.52%

Live Cattle Apr 19 126.275s -0.025 -0.02%

Live Cattle Jun 19 116.150s +0.200 +0.17%

 

Feeder Cattle Mar 19 142.525s -0.025 -0.02%

Feeder Cattle Apr 19 144.000s -0.275 -0.19%

Feeder Cattle May 19 144.600s -0.200 -0.14%

 

Lean Hogs Feb 19 56.350s +0.100 +0.18%

Lean Hogs Apr 19 60.125s -0.100 -0.17%

Lean Hogs May 19 67.650s +0.225 +0.33%

 

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