Canola free-falls amid widespread pressure

 

Winnipeg, (CNS Canada) – The ICE Futures Canada canola complex plunged on Friday as steep losses in U.S. soybeans and strength in the Canadian currency pointed the way lower.

Canola was pressured by losses in U.S. soyoil and farmer selling.

Yesterday’s bearish USDA report also dragged on the market as the agency predicted U.S. ending stocks of soybeans would rise to their second highest amount ever.

Falling crush margins and spec selling undermined the market.

However, canola is still relatively cheap compared to other oilseeds and global demand for oilseeds remains firm.

Around 15,057 canola contracts were traded on Friday, which compares with Thursday when around 15,303 contracts changed hands. Spreading accounted for 7,194 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

The soybean market suffered steep losses to end the week as the effects of yesterday’s USDA report continued to reverberate throughout the market.

Most analysts don’t believe that the recent rise in soybean demand will keep up with the rising carryout numbers in the United States. The USDA pegged soybean stocks at 555 million bushels, which is the second highest amount on record and 80 per cent more than last year.

There are ideas that some U.S. corn acres could be switched to soybeans.

Corn futures softened on Friday in corrective trading.

U.S. farmer selling of both old and new crop is picking up slightly, which was bearish.

Yesterday’s report lowered U.S. ending stocks, which lent some support to the market.

Chicago wheat futures dropped on Friday in the wake of yesterday’s USDA report. The agency raised the U.S. ending stocks number, which it said was partially a result of weak exports.

The agency raised the U.S. ending stocks number by a light amount, brought on by weak exports.

Russian wheat exports were estimated to be 37.5 million tonnes this year. That is much higher than last year’s figure which was just 27.8 million.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 30 cents at US$57.46 per barrel.

In the afternoon, the Canadian dollar was trading around US77.71 cents, down from 77.73 cents the previous trading day. The U.S. dollar was C$1.2868. 1/.7795

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 18 509.50s -6.70 -1.30%

Canola May 18 514.90s -6.90 -1.32%

Canola Jul 18 519.00s -7.20 -1.37%

Canola Nov 18 507.10s -6.10 -1.19%

Canola Jan 19 511.10s -6.40 -1.24%

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 18 1029-2s -24-4 -2.33%

Soybeans May 18 1039-2s -24-6 -2.33%

Soybeans Jul 18 1048-2s -24-6 -2.31%

Soybeans Aug 18 1049-2s -24-2 -2.26%

Soybeans Sep 18 1037-4s -19-6 -1.87%

 

Soybean Meal Mar 18 371.7s -8.9 -2.34%

Soybean Meal May 18 373.6s -9.8 -2.56%

Soybean Meal Jul 18 375.3s -9.2 -2.39%

 

Soybean Oil Mar 18 31.42s -0.25 -0.79%

Soybean Oil May 18 31.59s -0.25 -0.79%

Soybean Oil Jul 18 31.82s -0.24 -0.75%

 

Corn Mar 18 383-0s -2-6 -0.71%

Corn May 18 390-4s -3-0 -0.76%

Corn Jul 18 398-0s -2-4 -0.62%

Corn Sep 18 402-4s -2-4 -0.62%

Corn Dec 18 407-2s -3-0 -0.73%

Oats Mar 18 259-4s -1-2 -0.48%

Oats May 18 262-4s -2-4 -0.94%

Oats Jul 18 263-0s -1-4 -0.57%

Oats Sep 18 261-6s -2-0 -0.76%

Oats Dec 18 263-6s -1-4 -0.57%

 

Wheat Mar 18 489-0s -5-6 -1.16%

Wheat May 18 489-2s -10-0 -2.00%

Wheat Jul 18 505-4s -9-6 -1.89%

Wheat Sep 18 522-0s -9-6 -1.83%

Wheat Dec 18 542-0s -10-0 -1.81%

 

Minneapolis

Spring Wheat Mar 18 615-0s -6-6 -1.09%

Spring Wheat May 18 617-4s -7-2 -1.16%

Spring Wheat Jul 18 625-4s -7-2 -1.15%

Spring Wheat Sep 18 632-2s -6-4 -1.02%

Spring Wheat Dec 18 641-2s -5-0 -0.77%

 

Kansas City

Hard Red Wheat Mar 18 508-0s -11-6 -2.26%

Hard Red Wheat May 18 520-4s -12-6 -2.39%

Hard Red Wheat Jul 18 537-2s -12-6 -2.32%

Hard Red Wheat Sep 18 554-2s -12-4 -2.21%

Hard Red Wheat Dec 18 573-2s -11-6 -2.01%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle   Apr 18 123.125s +1.350 +1.11%

Live Cattle   Jun 18 114.300s +1.025 +0.90%

Live Cattle   Aug 18 111.650s +0.400 +0.36%

 

Feeder Cattle   Mar 18 142.525s +0.775 +0.55%

Feeder Cattle   Apr 18 143.150s +0.150 +0.10%

Feeder Cattle   May 18 144.650s +0.200 +0.14%

 

Lean Hogs   Apr 18 67.850s -0.225 -0.33%

Lean Hogs   May 18 72.000s -0.350 -0.48%

Lean Hogs   Jun 18 77.675s -0.575 -0.73%

Comments

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