Canola futures drop, but show resilience

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished in the red on Monday after initially starting the day stronger.

One trader said canola prices had “shown some resilience” given the strong Canadian dollar and lower soyoil prices on the Chicago Board of Trade. High crush margins had encouraged buying, which supported values.

However, bearish influences eventually outweighed earlier support. The Canadian dollar held steady at just over 77 U.S. cents, keeping a lid on values.

On Monday, 22,025 contracts were traded, which compares with Friday when 20,607 contracts changed hands. Spreading accounted for 15,478 contracts traded.

Oil values surged over 3.5 per cent on Friday after United States forces killed an Iranian general. Subsequently, grain and livestock markets took a hit, but have regained some ground today.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly stronger on Monday, supported by strong export demand.

According to last week’s export sales report from the U.S Department of Agriculture (USDA), soybean inspections were 41 percent higher than the same week the year prior, totalling over 963,000 tonnes.

With rain in the forecast, growing conditions in Brazil and Argentina kept pressure on soybean values. Above average rainfall is expected in northern regions of Brazil, and Argentina is also expecting to receive average precipitation.

However, soyoil futures were about half a cent weaker on the day, in order to remain competitive with lower values for Malaysian palm oil.

CORN futures finished slightly lower today. Export inspections were higher than the week, but still lagging behind last year’s pace. Export sales totaled about 550,000 tonnes.

The Energy Information Administration (EIA) reported that weekly ethanol production decreased by 17,000 barrels per day last week. Ethanol stocks dropped 500,000 barrels to total 21 million.

Brazil’s corn crop may be at risk of drought due to lack of rain in key growing regions. While northern Brazil is expecting rain, Rio Grande do Sul is not. Brazilian agronomists are “evaluating the negative impacts of recent dryness in the corn crop,” and are expected to reduce production estimates to be below 6 million tonnes for the region.

WHEAT futures were mixed on Monday, supported by strong export demand. Last week, the USDA reported wheat inspections totaled just over 345,000 tonnes. That’s an increase of 33,000 tonnes when compared to the previous week.

European wheat futures hit six-month highs last week, but have since given back some gains. Winter weather has improved in Russia and Ukraine, and the threat of winterkill has been lower.

 

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 22 cents at US$63.27 per barrel.

In the afternoon, the Canadian dollar was trading around US77.10 cents, up from 76.99 cents the previous trading day. The U.S. dollar was C$1.2970.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 20 468.70s -0.90 -0.19%

Canola Mar 20 477.20s -1.10 -0.23%

Canola May 20 486.20s -1.10 -0.23%

Canola Jul 20 491.80s -1.20 -0.24%

Canola Nov 20 494.90s -1.30 -0.26%

 

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 20 932-6s +2-2 +0.24%

Soybean Mar 20 944-6s +3-2 +0.35%

Soybean May 20 958-2s +3-0 +0.31%

Soybean Jul 20 970-4s +2-6 +0.28%

Soybean Aug 20 974-4s +2-6 +0.28%

 

Soybean Meal Jan 20 297.7s +1.6 +0.54%

Soybean Meal Mar 20 302.9s +1.7 +0.56%

Soybean Meal May 20 306.9s +1.7 +0.56%

 

Soybean Oil Jan 20 34.24s -0.57 -1.64%

Soybean Oil Mar 20 34.52s -0.56 -1.60%

Soybean Oil May 20 34.83s -0.54 -1.53%

 

Corn Mar 20 384-6s -1-6 -0.45%

Corn May 20 391-4s -1-4 -0.38%

Corn Jul 20 398-0s -1-2 -0.31%

Corn Sep 20 397-4s -0-6 -0.19%

Corn Dec 20 400-0s -0-6 -0.19%

 

Oats Mar 20 294-2s +3-4 +1.20%

Oats May 20 291-2s +3-2 +1.13%

Oats Jul 20 285-6s +2-4 +0.88%

Oats Sep 20 275-2s +0-2 +0.09%

Oats Dec 20 268-4s +1-4 +0.56%

 

Wheat Mar 20 550-0s -4-4 -0.81%

Wheat May 20 553-6s -4-0 -0.72%

Wheat Jul 20 557-0s -3-4 -0.62%

Wheat Sep 20 563-6s -3-4 -0.62%

Wheat Dec 20 573-4s -3-0 -0.52%

 

Minneapolis

Spring Wheat Mar 20 548-0s +0-4 +0.09%

Spring Wheat May 20 557-4s +0-4 +0.09%

Spring Wheat Jul 20 565-0s +0-2 +0.04%

Spring Wheat Sep 20 573-0s -0-4 -0.09%

Spring Wheat Dec 20 585-4s -0-6 -0.13%

 

Kansas City

Hard Red Wheat Mar 20 477-2s +2-2 +0.47%

Hard Red Wheat May 20 485-2s +2-4 +0.52%

Hard Red Wheat Jul 20 492-4s +2-2 +0.46%

Hard Red Wheat Sep 20 499-6s +1-6 +0.35%

Hard Red Wheat Dec 20 510-4s +1-6 +0.34%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 20 127.275s +2.550 +2.04%

Live Cattle Apr 20 128.100s +2.425 +1.93%

Live Cattle Jun 20 119.450s +1.775 +1.51%

 

Feeder Cattle Jan 20 147.425s +4.075 +2.84%

Feeder Cattle Mar 20 146.350s +3.675 +2.58%

Feeder Cattle Apr 20 148.725s +3.200 +2.20%

 

Lean Hogs Feb 20 68.625s +0.075 +0.11%

Lean Hogs Apr 20 74.950s -0.200 -0.27%

Lean Hogs May 20 81.450s +0.050 +0.06%

 

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