Canola follows soybeans lower Wednesday ahead of USDA

 

Winnipeg, March 7 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Wednesday, following Chicago Board of Trade soybeans as traders booked profits ahead of the United States Department of Agriculture monthly supply/demand report set for release on Thursday.

Speculators were noted sellers, as canola backed away from nearby chart resistance. Increased farmer hedges, improving moisture conditions in Western Canada, and large old crop supplies added to the softer tone in canola, according to participants.

However, weakness in the Canadian dollar provided underlying support for canola, with the currency falling by more than half a cent relative to its U.S. counterpart. As a result, crush margins held relatively steady on the day.

About 19,155 canola contracts traded on Wednesday, which compares with Tuesday when 14,505 contracts changed hands. Spreading accounted for 7,246 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were down on Wednesday, as traders took profits ahead of Thursday’s United States Department of Agriculture monthly supply/demand report.

In addition to an updated forecast on U.S. ending stocks, the report will also include revisions to South American production estimates. Average trade guesses are calling for a drop in Argentina’s soybean crop by five million tonnes or more from an earlier estimate. However, Brazilian production should be revised higher.

CORN futures ended slightly lower, after trading to both sides of unchanged in thin activity ahead of Thursday’s USDA report.

Downward revisions to both the Brazilian and Argentine corn crops are expected, with world ending stocks also likely to see a cut of three million to four million tonnes from February’s 203 million tonne estimate.

Solid demand from the ethanol sector provided some support, although rising ethanol stocks and losses in crude oil may cut into that buying interest going forward.

WHEAT futures were all lower on the day, as values backed away from nearby highs.

While persistent dryness across much of the major U.S. winter wheat growing regions remained a supportive influence, a lack of fresh news on the weather front saw prices drift lower today.
Average trade guesses are for an upward revision to U.S. wheat stocks in tomorrow’s report, but a slight decline in world supplies.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were down $1.45 at US$61.15 per barrel.

In the afternoon, the Canadian dollar was trading around US77.54 cents, down from 77.64 cents the previous trading day. The U.S. dollar was C$1.2897.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 18 516.60s -4.10 -0.79%

Canola May 18 522.20s -3.80 -0.72%

Canola Jul 18 526.60s -3.90 -0.74%

Canola Nov 18 514.00s -1.30 -0.25%

Canola Jan 19 517.90s -1.50 -0.29%

 

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 18 1055-0s -9-4 -0.89%

Soybeans May 18 1065-2s -9-4 -0.88%

Soybeans Jul 18 1074-0s -9-0 -0.83%

Soybeans Aug 18 1073-2s -7-6 -0.72%

Soybeans Sep 18 1055-6s -4-4 -0.42%

 

Soybean Meal Mar 18 380.2s -4.3 -1.12%

Soybean Meal May 18 383.5s -4.5 -1.16%

Soybean Meal Jul 18 384.8s -2.9 -0.75%

 

Soybean Oil Mar 18 31.93s -0.37 -1.15%

Soybean Oil May 18 32.10s -0.38 -1.17%

Soybean Oil Jul 18 32.31s -0.38 -1.16%

 

Corn Mar 18 379-2s -0-4 -0.13%

Corn May 18 387-2s -1-0 -0.26%

Corn Jul 18 394-4s -1-0 -0.25%

Corn Sep 18 399-6s -0-6 -0.19%

Corn Dec 18 406-2s -0-2 -0.06%

 

Oats Mar 18 259-4s -2-4 -0.95%

Oats May 18 264-0s -3-6 -1.40%

Oats Jul 18 265-0s -3-0 -1.12%

Oats Sep 18 263-2s -1-6 -0.66%

Oats Dec 18 265-2s -0-6 -0.28%

 

Wheat Mar 18 493-0s -9-0 -1.79%

Wheat May 18 497-2s -9-6 -1.92%

Wheat Jul 18 513-0s -8-2 -1.58%

Wheat Sep 18 529-0s -7-2 -1.35%

Wheat Dec 18 548-6s -6-0 -1.08%

 

Minneapolis

Spring Wheat Mar 18 620-0s -7-2 -1.16%

Spring Wheat May 18 620-0s -9-0 -1.43%

Spring Wheat Jul 18 627-6s -9-0 -1.41%

Spring Wheat Sep 18 633-6s -8-0 -1.25%

Spring Wheat Dec 18 642-4s -7-2 -1.12%

 

Kansas City

Hard Red Wheat Mar 18 521-0s -8-2 -1.56%

Hard Red Wheat May 18 534-2s -7-2 -1.34%

Hard Red Wheat Jul 18 551-0s -6-6 -1.21%

Hard Red Wheat Sep 18 567-4s -5-6 -1.00%

Hard Red Wheat Dec 18 585-4s -5-2 -0.89%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 18 122.975s +0.150 +0.12%

Live Cattle Jun 18 114.825s +0.050 +0.04%

Live Cattle Aug 18 112.450s unch unch

 

Feeder Cattle Mar 18 143.775s -0.525 -0.36%

Feeder Cattle Apr 18 145.375s -0.750 -0.51%

Feeder Cattle May 18 146.875s -0.225 -0.15%

 

Lean Hogs Apr 18 67.800s -0.400 -0.59%

Lean Hogs May 18 72.600s -1.650 -2.22%

Lean Hogs Jun 18 78.600s -1.350 -1.69%

 

 

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