Canola futures drop again; wheat rebounds

Winnipeg – ICE Futures canola contracts continued their downward slide of the past week on Wednesday, as speculators remained on the sell side adding to their large short positions.

In addition to the bearish chart signals, losses in Chicago Board of Trade soyoil, large old crop supplies, and the ongoing trade tensions between Canada and China also weighed on values.

A lack of significant end-user demand on the other side contributed to the declines, as commercial traders remained content to watch prices fall.

The Canadian government announced expansions to the Advance Payments Program on Wednesday in an effort to help canola farmers amid the Chinese trade uncertainty. Trade missions to work on diversifying the demand for canola were also announced. However, the government announcements did little to address the root problem.

The Canadian dollar was slightly softer, providing some support for canola. Oversold price sentiment and expectations for reduced acres this spring also helped temper the declines.

About 21,572 canola contracts traded on Wednesday, which compares with Tuesday when 11,238 contracts changed hands. Spreading accounted for 13,262 of the contracts trade.

SOYBEAN futures at the Chicago Board of Trade touched fresh contract lows in many months on Wednesday before uncovering some chart support to settle with only small losses.

Bearish technical signals accounted for much of the weakness, as speculators continued to add to their large net short positions.

The lack of progress on trade talks between the United States and China also weighed on prices, as those negotiations continue to drag on despite some optimistic rumblings.

South American harvest pressure and expectations that seeding delays in the U.S. will see some intended corn area switch into soybeans instead added to the softer tone.

CORN futures were higher, finding some spillover support for wheat.

Corn seeding is running well behind normal across the Midwest, with cool and wet weather in the forecasts expected to cause more delays.

WHEAT futures were higher, correcting off of nearby lows as end user bargain hunting and speculative short-covering came forward to provide support.

Seeding delays for spring wheat in the northern states also underpinned the futures.

However, relatively favourable crop conditions for winter wheat tempered the upside, with early yield estimates looking significantly above the year ago level.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 31 cents at US$63.60 per barrel.

In the afternoon, the Canadian dollar was trading around US74.54 cents, up from 74.50 cents the previous trading day. The U.S. dollar was C$1.3416.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 19 432.30s -4.90 -1.12%

Canola Jul 19 436.40s -4.80 -1.09%

Canola Nov 19 450.50s -5.00 -1.10%

Canola Jan 20 457.50s -5.10 -1.10%

Canola Mar 20 463.80s -5.20 -1.11%

 

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 19 839-4s -1-6 -0.21%

Soybean Jul 19 851-6s -2-2 -0.26%

Soybean Aug 19 858-0s -2-0 -0.23%

Soybean Sep 19 863-2s -2-0 -0.23%

Soybean Nov 19 873-0s -1-6 -0.20%

 

Soybean Meal May 19 296.0s unch unch

Soybean Meal Jul 19 300.3s +0.2 +0.07%

Soybean Meal Aug 19 301.6s +0.1 +0.03%

 

Soybean Oil May 19 27.38s -0.20 -0.73%

Soybean Oil Jul 19 27.65s -0.23 -0.82%

Soybean Oil Aug 19 27.80s -0.22 -0.79%

 

Corn May 19 360-0s +6-6 +1.91%

Corn Jul 19 368-4s +6-0 +1.66%

Corn Sep 19 376-2s +5-6 +1.55%

Corn Dec 19 386-2s +5-2 +1.38%

Corn Mar 20 400-0s +4-0 +1.01%

 

Oats May 19 304-2s -0-6 -0.25%

Oats Jul 19 294-6s +6-4 +2.25%

Oats Sep 19 279-2s +5-4 +2.01%

Oats Dec 19 263-2s +2-4 +0.96%

Oats Mar 20 256-4s +2-2 +0.88%

 

Wheat May 19 425-0s +6-4 +1.55%

Wheat Jul 19 436-0s +7-2 +1.69%

Wheat Sep 19 443-2s +5-4 +1.26%

Wheat Dec 19 459-4s +4-4 +0.99%

Wheat Mar 20 476-0s +3-6 +0.79%

 

Minneapolis

Spring Wheat May 19 495-0s +4-6 +0.97%

Spring Wheat Jul 19 512-0s +5-0 +0.99%

Spring Wheat Sep 19 521-0s +4-6 +0.92%

Spring Wheat Dec 19 535-2s +3-6 +0.71%

Spring Wheat Mar 20 549-0s +2-4 +0.46%

 

Kansas City

Hard Red Wheat May 19 389-2s +3-0 +0.78%

Hard Red Wheat Jul 19 400-0s +6-0 +1.52%

Hard Red Wheat Sep 19 410-6s +5-2 +1.29%

Hard Red Wheat Dec 19 432-4s +4-4 +1.05%

Hard Red Wheat Mar 20 455-0s +4-0 +0.89%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 19 113.875s -0.375 -0.33%

Live Cattle Aug 19 110.975s -0.800 -0.72%

Live Cattle Oct 19 111.700s -0.625 -0.56%

 

Feeder Cattle May 19 141.375s -0.225 -0.16%

Feeder Cattle Aug 19 149.225s +0.075 +0.05%

Feeder Cattle Sep 19 150.300s -0.250 -0.17%

 

Lean Hogs May 19 87.100s +2.800 +3.32%

Lean Hogs Jun 19 91.225s +3.000 +3.40%

Lean Hogs Jul 19 95.375s +3.000 +3.25%

 

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