Canola futures drop again

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished lower on Tuesday, following trends set earlier in the week.

Prices began the week lower, pressured by the weeklong CN Rail strike. The strike was said to be Canada’s longest railwork stoppage in a decade. However, CN Rail announced on Tuesday morning that some workers will return to work this afternoon, and full operations will resume on Wednesday.

Many groups, including representatives from the agriculture industry, encouraged the federal government to intervene in the strike. The Agriculture Producers Association of Saskatchewan (APAS) said the strike has caused headaches for farmers and threatened the remainder of the shipping season.

One Winnipeg-based trader said, the announcement that the strike is being settled, has allowed canola prices to stay a bit firmer today. Short coverings have been a feature in trading, due to the uncertainty posed by the rail strike.

On Tuesday, 22,485 contracts were traded, which compares with Monday when 19,887 contracts changed hands. Spreading accounted for 19,294 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Tuesday as there is still no concrete deal for Phase One of the trade agreement between the United States and China.

China has exponentially increased their soybean imports from Argentina. In October, China imported almost 960,000 tonnes of soybeans. Argentina is the world’s third-largest soybean exporter. China has been importing soybeans from Brazil, but inventories are expected to deplete in coming weeks.

The weekly crop progress report from the USDA said soybeans are 94 per cent harvested. North Dakota is furthest behind in the soybean harvest, due to winter weather delaying harvest activity. Soybeans in the state are just 89 per cent harvested.

CORN futures were weaker at midday, despite some export sales. Yesterday, South Korea purchased 60,000 tonnes of corn.

The corn harvest in North Dakota is also significantly behind schedule. On average, it’s about 91 per cent harvested around this time. However, this year, the crop is currently only 30 per cent harvested.

The Governors’ Biofuels Coalition has implored the Trump administration to reduce toxic aromatics in gasoline through the use of higher ethanol blends. The coalition said utilizing clean octane from biofuels instead of aromatics’ “dirty octane” would be beneficial for the ethanol industry. Governors from 22 states are a part of this coalition.

WHEAT futures were lower on Tuesday, despite reduced production estimates from both Australia and Argentina due to prolonged hot, dry weather. Also, Russia cut their 2019 crop production forecast by 3 million tonnes.

U.S. winter wheat was rated as 52 per cent good to excellent, which was steady from the week prior.

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 up 40 cents at US$58.41 per barrel.

In the afternoon, the Canadian dollar was trading around US75.26 cents, up from 75.15 cents the previous trading day. The U.S. dollar was C$1.3288.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 20 457.20s -2.20 -0.48%

Canola Mar 20 466.40s -2.30 -0.49%

Canola May 20 475.00s -1.60 -0.34%

Canola Jul 20 481.50s -1.40 -0.29%

Canola Nov 20 483.90s +0.10 +0.02%

 

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 20 884-2s -8-2 -0.92%

Soybean Mar 20 898-6s -8-2 -0.91%

Soybean May 20 913-2s -7-6 -0.84%

Soybean Jul 20 926-0s -7-2 -0.78%

Soybean Aug 20 930-2s -7-2 -0.77%

 

Soybean Meal Dec 19 294.7s -3.6 -1.21%

Soybean Meal Jan 20 297.1s -3.5 -1.16%

Soybean Meal Mar 20 300.6s -2.9 -0.96%

 

Soybean Oil Dec 19 30.22s -0.22 -0.72%

Soybean Oil Jan 20 30.40s -0.19 -0.62%

Soybean Oil Mar 20 30.69s -0.19 -0.62%

 

Corn Dec 19 367-4s -3-0 -0.81%

Corn Mar 20 378-2s -2-4 -0.66%

Corn May 20 384-2s -2-2 -0.58%

Corn Jul 20 389-4s -2-4 -0.64%

Corn Sep 20 389-0s -2-4 -0.64%

 

Oats Dec 19 316-0s +1-2 +0.40%

Oats Mar 20 322-2s +1-4 +0.47%

Oats May 20 316-2s -0-6 -0.24%

Oats Jul 20 301-6s -4-4 -1.47%

Oats Sep 20 284-0s -7-0 -2.41%

 

Wheat Dec 19 530-2s -0-6 -0.14%

Wheat Mar 20 531-0s -2-0 -0.38%

Wheat May 20 535-0s -1-4 -0.28%

Wheat Jul 20 534-6s -1-2 -0.23%

Wheat Sep 20 541-0s -1-2 -0.23%

 

Minneapolis

Spring Wheat Dec 19 494-0s -4-2 -0.85%

Spring Wheat Mar 20 512-0s -1-0 -0.19%

Spring Wheat May 20 521-6s +0-6 +0.14%

Spring Wheat Jul 20 532-2s +1-4 +0.28%

Spring Wheat Sep 20 542-4s +1-4 +0.28%

 

Kansas City

Hard Red Wheat Dec 19 432-4s -3-0 -0.69%

Hard Red Wheat Mar 20 441-4s -3-6 -0.84%

Hard Red Wheat May 20 449-4s -3-0 -0.66%

Hard Red Wheat Jul 20 456-6s -3-0 -0.65%

Hard Red Wheat Sep 20 465-6s -3-0 -0.64%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 19 120.400s +0.700 +0.58%

Live Cattle Feb 20 125.675s +0.525 +0.42%

Live Cattle Apr 20 126.100s +0.875 +0.70%

 

Feeder Cattle Jan 20 141.625s -0.350 -0.25%

Feeder Cattle Mar 20 142.225s -0.125 -0.09%

Feeder Cattle Apr 20 144.050s +0.300 +0.21%

 

Lean Hogs Dec 19 60.825s -0.200 -0.33%

Lean Hogs Feb 20 67.825s +0.075 +0.11%

Lean Hogs Apr 20 74.350s +0.475 +0.64%

 

About the author

Markets at a glance

Copyright © 2019. All market data is provided by Barchart Market Data Solutions. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

explore

Stories from our other publications