Canola futures bounce back

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished higher on Wednesday, recovering from losses earlier in the week.

One Winnipeg-based trader said canola was “due for a bounce” after incurring losses over several days. Canola prices are expected to be mostly range-bound for the next few weeks.
The price rebound was supported by small gains in soy oil on the Chicago Board of Trade, though markets in the United States are quiet ahead of the Thanksgiving holiday.

The announcement that CN Rail Employees will return to work after a weeklong strike provided some optimism to canola prices. A prolonged strike could have impacted canola supply chains to export markets.

A slightly stronger Canadian dollar kept a lid on canola prices. The dollar was around 75.28 U.S. cents at midday.

On Wednesday, 14,133 contracts were traded, which compares with Tuesday when 22,485 contracts changed hands. Spreading accounted for 10,180 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, as there is still no concrete deal for Phase One of the trade agreement between the United States and China. The delay may be due to the fact that U.S. President Donald Trump has said Washington stands with protesters in Hong Kong, who have been demonstrating against mainland China for months.

“We’re in the final throes of a very important deal, I guess you could say one of the most important deals in trade ever. It’s going very well but at the same time we want to see it go well in Hong Kong,” President Trump said in press conference.

Soybeans were also pressured by competitive global prices. A lower Brazilian currency has supported their export markets significantly, and the United States Department of Agriculture (USDA) expected total soybean exports from Brazil to total 76 million tonnes.

CORN exports from Brazil are also expected to be 80 per cent higher than the previous year, totaling 41 million tonnes, according to a private grain exporting group.

U.S. corn futures were weaker, despite increased demand for both exports and ethanol.

The USDA reported that South Korea purchased 69,000 tonnes of corn earlier this week.

Last week, ethanol production was higher for the tenth consecutive week at 1.059 million barrels per day. Ending stocks were at just over 20 million barrels.

WHEAT futures were lower on Wednesday, pressured by competitive global prices.

The weekly crop progress report showed the winter wheat crop is 87 per cent emerged, which is just slightly behind the average rate.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 30 cents at US$58.11 per barrel.

In the afternoon, the Canadian dollar was trading around US75.31 cents, up from 75.26 cents the previous trading day. The U.S. dollar was C$1.3278.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 20 458.50s +1.30 +0.28%

Canola Mar 20 467.80s +1.40 +0.30%

Canola May 20 476.10s +1.10 +0.23%

Canola Jul 20 482.40s +0.90 +0.19%

Canola Nov 20 483.70s -0.20 -0.04%

 

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 Jan 20 882-0s -2-2 -0.25%

Soybean Mar 20 896-4s -2-2 -0.25%

Soybean May 20 910-6s -2-4 -0.27%

Soybean Jul 20 923-2s -2-6 -0.30%

Soybean Aug 20 927-4s -2-6 -0.30%

 

Soybean Meal Dec 19 293.8s -0.9 -0.31%

Soybean Meal Jan 20 296.2s -0.9 -0.30%

Soybean Meal Mar 20 300.0s -0.6 -0.20%

 

Soybean Oil Dec 19 30.37s +0.15 +0.50%

Soybean Oil Jan 20 30.50s +0.10 +0.33%

Soybean Oil Mar 20 30.79s +0.10 +0.33%

 

Corn Dec 19 362-6s -4-6 -1.29%

Corn Mar 20 373-2s -5-0 -1.32%

Corn May 20 379-0s -5-2 -1.37%

Corn Jul 20 384-2s -5-2 -1.35%

Corn Sep 20 384-0s -5-0 -1.29%

 

Oats Dec 19 312-4s -3-4 -1.11%

Oats Mar 20 316-4s -5-6 -1.78%

Oats May 20 310-4s -5-6 -1.82%

Oats Jul 20 295-4s -6-2 -2.07%

Oats Sep 20 280-2s -3-6 -1.32%

 

Wheat Dec 19 528-4s -1-6 -0.33%

Wheat Mar 20 526-6s -4-2 -0.80%

Wheat May 20 531-0s -4-0 -0.75%

Wheat Jul 20 531-4s -3-2 -0.61%

Wheat Sep 20 537-6s -3-2 -0.60%

 

Minneapolis

Spring Wheat Dec 19 488-4s -5-4 -1.11%

Spring Wheat Mar 20 508-4s -3-4 -0.68%

Spring Wheat May 20 518-4s -3-2 -0.62%

Spring Wheat Jul 20 528-6s -3-4 -0.66%

Spring Wheat Sep 20 539-0s -3-4 -0.65%

 

Kansas City

Hard Red Wheat Dec 19 426-6s -5-6 -1.33%

Hard Red Wheat Mar 20 437-4s -4-0 -0.91%

Hard Red Wheat May 20 445-4s -4-0 -0.89%

Hard Red Wheat Jul 20 452-2s -4-4 -0.99%

Hard Red Wheat Sep 20 461-0s -4-6 -1.02%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle (Pit) Dec 19 121.425s +1.025 +0.85%

Live Cattle (Pit) Feb 20 126.700s +1.025 +0.82%

Live Cattle (Pit) Apr 20 126.875s +0.775 +0.61%

 

Feeder Cattle (Pit) Jan 20 143.325s +1.700 +1.20%

Feeder Cattle (Pit) Mar 20 143.925s +1.700 +1.20%

Feeder Cattle (Pit) Apr 20 145.625s +1.575 +1.09%

 

Lean Hogs (Pit) Dec 19 60.675s -0.150 -0.25%

Lean Hogs (Pit) Feb 20 67.150s -0.675 -1.00%

Lean Hogs (Pit) Apr 20 73.625s -0.725 -0.98%

 

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