Winnipeg, (MarketsFarm) – ICE Futures canola contracts were stronger at Thursday’s close, as speculative short-covering came forward following earlier losses.
Canola dropped to fresh contract lows in early activity, but managed to turn higher amid ideas the market was starting to look oversold.
Solid crush margins, gains in Chicago Board of Trade soybeans and recent weakness in the Canadian dollar also provided some support.
However, traders cautioned that any corrective bounce would likely be short-lived as the underlying fundamentals and techncials remain bearish.
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Feed Grains Weekly: Price likely to keep stepping back
As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
Trade issues with China, losses in CBOT soyoil, large unpriced old-crop supplies in the countryside and a bearish outlook for many other new-crop seeding options all weighed on values.
About 19,750 canola contracts traded on Thursday, which compares with Wednesday when 17,518 contracts changed hands. Spreading accounted for 12,872 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade held steady on Thursday, as traders squared positions ahead of the United States Department of Agriculture’s monthly supply/demand report on Friday.
Weekly U.S. soybean export sales came in well below market expectations at only 311,000 tonnes of old crop business and 72,000 tonnes for new crop. Many traders had expected the sales to top a million tonnes.
Continued uncertainty over China/US trade talks also kept some caution in the market. However, cheaper prices were thought to be bringing in some buying interest, with reports that China bought 500,000 tonnes of U.S. soybeans.
The advancing Brazilian harvest kept some pressure on values, with weakness in the country’s currency also encouraging farmer sales.
CORN futures fell in sympathy with wheat, despite solid export demand.
Weekly U.S. corn export sales came in at just under a million tonnes of old crop business and 280,000 tonnes for delivery in 2019/20.
However, bearish technical signals and spillover from declines in wheat weighed on prices. Concerns over African swine fever in China also put some pressure on the feed grain.
WHEAT futures were steady to lower, with a firm tone in Minneapolis spring wheat and losses in the winter wheats.
Weekly U.S. wheat export sales of just over 800,000 tonnes of old and new crop business combined top trade expectations and provided some support.
However, the U.S. continues to face stiff completion on the global market, and falling prices in Europe and Russia kept U.S. bids under pressure in an effort to maintain some demand.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up 44 cents at US$56.66 per barrel.
In the afternoon, the Canadian dollar was trading around US74.42 cents, down from 74.52 centsthe previous trading day. The U.S. dollar was C$1.3438.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 19 451.20s +0.90 +0.20%
Canola May 19 456.20s +0.90 +0.20%
Canola Jul 19 465.00s +1.30 +0.28%
Canola Nov 19 478.60s +2.80 +0.59%
Canola Jan 20 485.30s +3.30 +0.68%
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 Mar 19 890-6s +1-0 +0.11%
Soybean May 19 902-4s +0-4 +0.06%
Soybean Jul 19 916-4s +0-6 +0.08%
Soybean Aug 19 922-6s +0-6 +0.08%
Soybean Sep 19 927-2s +0-2 +0.03%
Soybean Meal Mar 19 302.0s +0.2 +0.07%
Soybean Meal May 19 306.3s +0.2 +0.07%
Soybean Meal Jul 19 310.1s +0.2 +0.06%
Soybean Oil Mar 19 29.41s -0.10 -0.34%
Soybean Oil May 19 29.67s -0.11 -0.37%
Soybean Oil Jul 19 29.99s -0.12 -0.40%
Corn Mar 19 356-0s -6-4 -1.79%
Corn May 19 365-2s -7-2 -1.95%
Corn Jul 19 374-2s -6-6 -1.77%
Corn Sep 19 381-0s -6-4 -1.68%
Corn Dec 19 389-0s -6-0 -1.52%
Oats Mar 19 256-0s -3-6 -1.44%
Oats May 19 265-4s -3-4 -1.30%
Oats Jul 19 265-2s -3-6 -1.39%
Oats Sep 19 262-2s -2-4 -0.94%
Oats Dec 19 257-0s -3-6 -1.44%
Wheat Mar 19 431-4s -9-0 -2.04%
Wheat May 19 438-2s -11-6 -2.61%
Wheat Jul 19 445-0s -10-4 -2.31%
Wheat Sep 19 454-6s -9-6 -2.10%
Wheat Dec 19 470-2s -9-4 -1.98%
Minneapolis
Spring Wheat Mar 19 557-0s unch unch
Spring Wheat May 19 553-0s unch unch
Spring Wheat Jul 19 554-0s -1-4 -0.27%
Spring Wheat Sep 19 560-4s -1-2 -0.22%
Spring Wheat Dec 19 573-0s -2-0 -0.35%
Kansas City
Hard Red Wheat Mar 19 420-2s -11-0 -2.55%
Hard Red Wheat May 19 427-4s -11-0 -2.51%
Hard Red Wheat Jul 19 437-0s -9-6 -2.18%
Hard Red Wheat Sep 19 450-6s -7-6 -1.69%
Hard Red Wheat Dec 19 470-0s -6-4 -1.36%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 19 128.950s +0.050 +0.04%
Live Cattle Jun 19 120.350s +0.725 +0.61%
Live Cattle Aug 19 116.525s +0.925 +0.80%
Feeder Cattle Mar 19 142.900s +2.250 +1.60%
Feeder Cattle Apr 19 146.000s +2.350 +1.64%
Feeder Cattle May 19 147.075s +1.650 +1.13%
Lean Hogs Apr 19 57.725s +0.650 +1.14%
Lean Hogs May 19 66.575s +0.575 +0.87%
Lean Hogs Jun 19 75.525s -0.225 -0.30%
