Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were stronger on Monday, as supportive chart signals and improving crush margins kept both processors and speculators on the buy side to start the week.
Advances in Chicago Board of Trade soyoil and weakness in the Canadian dollar were both supportive for crush margins. Recent activity also kept the technical bias pointed higher, which had speculators adding to their large net long positions, according to participants.
While losses in CBOT soybeans did put some pressure on values, canola lagged beans to the upside last week and had little reason to follow lower on Monday.
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U.S. grains: Corn, soybeans extend losses as Midwest weather looks crop-friendly
Chicago Board of Trade corn futures extended session losses on Tuesday, weighed down by forecasts for crop-friendly rain in U.S. grain belts this week.
Uncertainty in the global financial markets kept some caution in the grains and oilseeds, amid a mounting trade dispute between China and the United States.
About 21,206 canola contracts traded on Monday, which compares with Thursday when 34,884 contracts changed hands. Spreading accounted for 11,020 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were lower on Monday. After initially seeing some follow-through buying interest after last Thursday’s rally, soybeans ran into resistance and profit-taking came forward to weigh on values.
The threat that soybeans from the United States may be next on the list of goods facing retaliatory tariffs from China also weighed on values.
Weekly U.S. soybean export inspections of about half a million tonnes were down considerably from the previous week, with total-year-to-date export commitments running about six percent behind last year’s pace.
However, the smaller-than-expected soybean acres in the USDA’s Prospective Plantings report remained supportive.
CORN futures settled near unchanged, as the smaller-than-expected U.S. corn acreage forecast by the USDA last week remained supportive. Concerns that adverse weather may delay early seeding operations also underpinned the futures.
However, the China/U.S. trade dispute kept a lid on the corn market, with ethanol included in the latest tariffs.
WHEAT futures were mixed on the day, with gains in Kansas City hard red winter wheat, and losses in the Chicago and Minneapolis contracts.
The USDA’s acreage report was mixed for wheat. All-wheat and winter wheat acres were the second-lowest of the past century, while spring wheat area is forecast to be up considerably from last year.
Cold temperatures in the southern U.S. Plains kept the winter wheat markets somewhat supported on Monday.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were down $1.93 at US$63.01 per barrel.
In the afternoon, the Canadian dollar was trading around US77.43 cents, down from 77.60 cents the previous trading day. The U.S. dollar was C$1.2915.
Winnipeg ICE Futures Canada dollars per tonne.
Canola May 18 524.80s +2.10 +0.40%
Canola Jul 18 530.40s +2.00 +0.38%
Canola Nov 18 518.50s +1.90 +0.37%
Canola Jan 19 521.90s +1.80 +0.35%
Canola Mar 19 523.30s +2.00 +0.38%
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 1035-4s -9-2 -0.89%
Soybeans Jul 18 1046-2s -9-2 -0.88%
Soybeans Aug 18 1049-0s -9-0 -0.85%
Soybeans Sep 18 1043-2s -8-0 -0.76%
Soybeans Nov 18 1040-0s -7-6 -0.74%
Soybean Meal May 18 377.3s -6.7 -1.74%
Soybean Meal Jul 18 380.4s -5.9 -1.53%
Soybean Meal Aug 18 378.5s -4.7 -1.23%
Soybean Oil May 18 32.04s +0.17 +0.53%
Soybean Oil Jul 18 32.30s +0.17 +0.53%
Soybean Oil Aug 18 32.43s +0.17 +0.53%
Corn May 18 387-2s -0-4 -0.13%
Corn Jul 18 395-6s -0-4 -0.13%
Corn Sep 18 402-6s -0-4 -0.12%
Corn Dec 18 411-2s -0-2 -0.06%
Corn Mar 19 418-2s unch unch
Oats May 18 231-6s +6-6 +3.00%
Oats Jul 18 241-0s +7-2 +3.10%
Oats Sep 18 246-4s +7-0 +2.92%
Oats Dec 18 255-2s +4-4 +1.79%
Oats Mar 19 264-0s +7-2 +2.82%
Wheat May 18 446-2s -4-6 -1.05%
Wheat Jul 18 463-4s -5-0 -1.07%
Wheat Sep 18 480-6s -4-4 -0.93%
Wheat Dec 18 502-0s -4-4 -0.89%
Wheat Mar 19 518-0s -4-2 -0.81%
Minneapolis
Spring Wheat May 18 573-4s -5-0 -0.86%
Spring Wheat Jul 18 582-4s -4-0 -0.68%
Spring Wheat Sep 18 589-2s -4-6 -0.80%
Spring Wheat Dec 18 602-2s -4-6 -0.78%
Spring Wheat Mar 19 614-2s -4-2 -0.69%
Kansas City
Hard Red Wheat May 18 467-4s +0-2 +0.05%
Hard Red Wheat Jul 18 486-6s +0-4 +0.10%
Hard Red Wheat Sep 18 506-0s +0-6 +0.15%
Hard Red Wheat Dec 18 530-6s +1-0 +0.19%
Hard Red Wheat Mar 19 545-6s +1-0 +0.18%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 18 112.400s -1.350 -1.19%
Live Cattle Jun 18 100.950s -1.625 -1.58%
Live Cattle Aug 18 100.600s -0.875 -0.86%
Feeder Cattle Apr 18 131.875s -1.450 -1.09%
Feeder Cattle May 18 132.375s -1.650 -1.23%
Feeder Cattle Aug 18 138.950s -1.475 -1.05%
Lean Hogs Apr 18 54.275s -2.975 -5.20%
Lean Hogs May 18 64.825s -3.000 -4.42%
Lean Hogs Jun 18 73.550s -3.000 -3.92%
