Canola future break upwards

Winnipeg  – ICE Futures canola contracts were up sharply on Tuesday, breaking out of their nearby trading range as a rally in Chicago Board of Trade grains and oilseeds provide support.

Weather concerns across the Midwest sparked the buying interest in the United States futures, with excessive moisture delaying corn and soybean seeding in the region.

Speculative short-covering added to the gains in canola, as some stops were hit on the way up.

Dryness concerns in parts of Western Canada were also supportive, with many areas in need of rain, according to a trader.

However, large old crop supplies and the ongoing trade dispute with China limited the upside.

Europe’s COCERAL pegged this year’s European union rapeseed crop at 17.9 million tonnes, which would be down two million from the previous year.

About 31,197 canola contracts traded on Tuesday, which compares with Monday when 4,977 contracts changed hands. Spreading accounted for 18,286 of the contracts trade.

SOYBEAN futures at the Chicago Board of Trade were up sharply on Tuesday, as persistent planting delays across the Midwest sparked a speculative short-covering rally.

Weekly crop progress data was delayed due to yesterday’s Memorial Day holiday in the United States, but traders estimate that less than a third of the country’s soybean crop has been seeded to date as heavy rains continue to cause delays.

Usually soybean planting would be over 60 per cent done by the last week in May.

The weather had speculators continuing to cover their large net short positions.

However, uncertainty over trade relations between the U.S. and China kept some caution in the market.

CORN prices were up as well, hitting their highest levels in three years in some cases.

Corn seeding would normally be nearly complete across the U.S., but roughly a third of intended acres are still unseeded this year.

The likelihood of lost acres and reduced yields for later planted fields accounted for much of the strength.

Solid weekly export inspections of just over a million tonnes were also supportive for corn.

WHEAT was also up on the back of speculative short covering. Expectations for declining winter wheat crop ratings added to the firmer tone, with seeding delays for spring wheat also supportive.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up51 cents at US$59.14 per barrel.

In the afternoon, the Canadian dollar was trading around US74.20 cents, down from 74.39 centsthe previous trading day. The U.S. dollar was C$1.3477.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 19  450.90s  +5.10  +1.14%

Canola Nov 19  464.20s  +5.30  +1.15%

Canola Jan 20  469.00s  +5.10  +1.10%

Canola Mar 20  473.30s  +4.70  +1.00%

Canola May 20  477.60s  +4.30  +0.91%

 

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 Jul 19  856-0s  +26-2  +3.16%

Soybean Aug 19  862-6s  +26-2  +3.14%

Soybean Sep 19  869-4s  +26-0  +3.08%

Soybean Nov 19  882-4s  +26-2  +3.07%

Soybean Jan 20  894-4s  +26-2  +3.02%

 

Soybean Meal Jul 19  312.8s  +12.3  +4.09%

Soybean Meal Aug 19  313.9s  +12.0  +3.97%

Soybean Meal Sep 19  315.5s  +11.9  +3.92%

 

Soybean Oil Jul 19  27.29s  +0.28  +1.04%

Soybean Oil Aug 19  27.41s  +0.27  +0.99%

Soybean Oil Sep 19  27.54s  +0.27  +0.99%

 

Corn Jul 19  420-2s  +16-0  +3.96%

Corn Sep 19  429-4s  +17-0  +4.12%

Corn Dec 19  437-0s  +17-2  +4.11%

Corn Mar 20  446-4s  +17-2  +4.02%

Corn May 20  449-2s  +17-0  +3.93%

 

Oats Jul 19  316-6s  +8-2  +2.67%

Oats Sep 19  295-6s  +10-4  +3.68%

Oats Dec 19  287-0s  +11-4  +4.17%

Oats Mar 20  288-0s  +11-4  +4.16%

Oats May 20  285-4s  +11-4  +4.20%

 

Wheat Jul 19  504-6s  +15-2  +3.12%

Wheat Sep 19  512-0s  +15-2  +3.07%

Wheat Dec 19  523-6s  +14-0  +2.75%

Wheat Mar 20  535-2s  +13-0  +2.49%

Wheat May 20  539-6s  +11-2  +2.13%

 

Minneapolis

Spring Wheat Jul 19  557-4s  +9-4  +1.73%

Spring Wheat Sep 19  564-6s  +9-6  +1.76%

Spring Wheat Dec 19  574-4s  +8-4  +1.50%

Spring Wheat Mar 20  586-0s  +7-4  +1.30%

Spring Wheat May 20  592-2s  +6-0  +1.02%

 

Kansas City

Hard Red Wheat Jul 19  460-6s  +18-6  +4.24%

Hard Red Wheat Sep 19  471-4s  +18-2  +4.03%

Hard Red Wheat Dec 19  491-6s  +16-2  +3.42%

Hard Red Wheat Mar 20  511-6s  +15-0  +3.02%

Hard Red Wheat May 20  524-0s  +14-0  +2.75%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 19  111.550s  +0.375  +0.34%

Live Cattle Aug 19  107.775s  -0.175  -0.16%

Live Cattle Oct 19  107.900s  +0.125  +0.12%

 

Feeder Cattle Aug 19  142.225s  -1.000  -0.70%

Feeder Cattle Sep 19  142.675s  -1.200  -0.83%

Feeder Cattle Oct 19  142.825s  -1.400  -0.97%

 

Lean Hogs Jun 19  83.975s  -2.450  -2.83%

Lean Hogs Jul 19  85.700s  -2.250  -2.56%

Lean Hogs Aug 19  87.350s  -1.950  -2.18%

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