Winnipeg – ICE Futures canola contracts were stronger on Monday, taking some direction from the Chicago soy complex.
Speculators covering their large short positions accounted for some of the buying interest, according to participants.
Spring road bans and a lack of significant farmer selling provided additional support.
However, uncertainty over the trade situation with China remained a bearish influence in the background, as the canola market waits for fresh news on the trade front.
About 14,597 canola contracts traded on Monday, which compares with Friday when 25,735 contracts changed hands. Spreading accounted for 10,250 of the contracts traded, as participants started rolling their positions out of the nearby May contract.
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SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, seeing a correction after Friday’s declines.
Optimism over trade talks between the United States and China accounted for some of the strength, with improving manufacturing data out of China also supportive for the financial and commodity markets in general.
In addition, the U.S. Department of Agriculture reported flash sales of 828,000 tonnes of soybeans to China this morning.
Last week’s smaller than expected U.S. acreage forecast from the USDA provided some additional support, although flooding across parts of the Midwest will likely see some intended corn area go into soybeans instead.
CORN futures were stronger, with chart-based profit-taking after Friday’s losses a feature. The likelihood of spring seeding delays was also supportive.
The USDA forecast corn acres in the country this year at nearly 92.8 million acres, which would be well above average trade guesses.
However, what actually gets seeded remains to be seen. At least a million acres of land was flooded after a recent storm, and other areas still waiting for the snow to melt.
There are also questions over how much old crop corn in storage was damaged by flooding
WHEAT futures were mixed, with a steady to lower tone in Minneapolis spring wheat and gains in the winter wheats.
While the large stocks reported by the USDA on Friday remained a bearish influence, speculative positioning and spillover from the gains in corn and soybeans provided some support.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were at US$61.77 per barrel.
In the afternoon, the Canadian dollar was trading around US75.10 cents. The U.S. dollar was C$1.331.
Winnipeg ICE Futures Canada dollars per tonne.
Name / Contract Last Change % Change
Canola May 19 456.60s +1.30 +0.29%
Canola Jul 19 464.40s +1.50 +0.32%
Canola Nov 19 475.90s +1.40 +0.30%
Canola Jan 20 482.50s +1.70 +0.35%
Canola Mar 20 487.40s +1.40 +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
Soybean May 19 895-4s +11-2 +1.27%
Soybean Jul 19 908-6s +11-0 +1.23%
Soybean Aug 19 914-6s +10-6 +1.19%
Soybean Sep 19 919-2s +9-6 +1.07%
Soybean Nov 19 928-2s +9-2 +1.01%
Soybean Meal May 19 309.4s +2.9 +0.95%
Soybean Meal Jul 19 312.9s +2.9 +0.94%
Soybean Meal Aug 19 314.6s +3.1 +1.00%
Soybean Oil May 19 28.57s +0.21 +0.74%
Soybean Oil Jul 19 28.90s +0.21 +0.73%
Soybean Oil Aug 19 29.06s +0.22 +0.76%
Corn May 19 361-6s +5-2 +1.47%
Corn Jul 19 371-0s +4-6 +1.30%
Corn Sep 19 379-2s +4-2 +1.13%
Corn Dec 19 388-6s +4-0 +1.04%
Corn Mar 20 401-4s +4-4 +1.13%
Oats May 19 278-4s +9-4 +3.53%
Oats Jul 19 277-2s +8-6 +3.26%
Oats Sep 19 268-4s +6-0 +2.29%
Oats Dec 19 259-6s +4-4 +1.76%
Oats Mar 20 257-4s +3-4 +1.38%
Wheat May 19 462-6s +5-0 +1.09%
Wheat Jul 19 468-0s +4-4 +0.97%
Wheat Sep 19 475-6s +4-6 +1.01%
Wheat Dec 19 490-0s +5-2 +1.08%
Wheat Mar 20 503-4s +5-6 +1.16%
Minneapolis
Spring Wheat May 19 553-0s -1-6 -0.32%
Spring Wheat Jul 19 556-2s -0-6 -0.13%
Spring Wheat Sep 19 562-6s unch unch
Spring Wheat Dec 19 575-2s +1-2 +0.22%
Spring Wheat Mar 20 587-4s +1-0 +0.17%
Kansas City
Hard Red Wheat May 19 434-4s +4-4 +1.05%
Hard Red Wheat Jul 19 442-2s +4-4 +1.03%
Hard Red Wheat Sep 19 453-2s +4-4 +1.00%
Hard Red Wheat Dec 19 473-4s +3-6 +0.80%
Hard Red Wheat Mar 20 490-6s +3-2 +0.67%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 19 126.175s +0.475 +0.38%
Live Cattle Jun 19 119.475s +0.475 +0.40%
Live Cattle Aug 19 116.200s +0.525 +0.45%
Feeder Cattle Apr 19 145.450s +0.200 +0.14%
Feeder Cattle May 19 148.875s +0.100 +0.07%
Feeder Cattle Aug 19 156.700s +0.450 +0.29%
Lean Hogs Apr 19 77.400s +0.025 +0.03%
Lean Hogs May 19 81.000s -0.325 -0.40%
Lean Hogs Jun 19 88.500s -0.050 -0.06%
