Canola futures drop on lower oils complex

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts ended lower on Wednesday, giving back gains made during the previous day’s trading session.

A lower tone for Malaysian palm oil in overnight trade sparked considerable selling activity on the canola market. Weakness in soy oil also failed to give canola a boost, as markets wait for stimulus from Chinese buying to rev up the economy again.

The Canadian dollar has been steady this week, around 75.58 U.S. cents, failing to sway canola in any significant way.

On Wednesday, 28,659 contracts were traded, which compares with Tuesday when 55,330 contracts changed hands. Spreading accounted for 24,188 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) finished stronger on Wednesday due to strong demand for crushing.

As the end of the month draws near, many traders are liquidating their March contracts in favour of May positioning, keeping some pressure on soybeans prices.

Also weighing down soybeans is an ever-growing Brazilian soybean crop. One private firm has increased estimates to total 125.6 million tonnes.

A weaker local currency in Brazil is also making the country’s exports more attractive to buyers around the world.

CORN futures were weaker on Wednesday.

Last week’s ethanol data from the Energy Information Association will be released tomorrow due to the President’s Day Holiday on Monday. However, an ethanol pricing report from the United States Grains Council showed that prices for ethanol in the Gulf of Mexico increased by approximately one per cent week over week.

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Brazil’s second corn crop is 32 per cent planted, lagging behind the average pace of 40 per cent planted at this time in a typical year.

WHEAT futures were slightly lower today, giving back some of the double-digit gains observed in yesterday’s trading session.

Russia’s agriculture ministry has projected the country’s 2020 wheat crop to be between three and five per cent higher, year over year. The U.S. Department of Agriculture projected the 2019/2020 Russian wheat crop at 73.5 million tonnes.

Swarms of locusts have been reported in India and Pakistan, but measures to control the outbreak are well under way, and crops likely will not be impacted.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up $1.24 at US$53.29 per barrel.

In the afternoon, the Canadian dollar was trading around US75.58 cents, down from 75.43 cents the previous trading day. The U.S. dollar was C$1.3231.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 20 459.30s -3.00 -0.65%

Canola May 20 467.90s -3.10 -0.66%

Canola Jul 20 474.60s -3.10 -0.65%

Canola Nov 20 483.40s -3.10 -0.64%

Canola Jan 21 490.20s -3.00 -0.61%

 

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 Mar 20 897-2s +5-0 +0.56%

Soybean May 20 905-4s +3-2 +0.36%

Soybean Jul 20 915-4s +1-4 +0.16%

Soybean Aug 20 918-6s +1-2 +0.14%

Soybean Sep 20 918-6s +1-2 +0.14%

 

Soybean Meal Mar 20 293.0s +0.8 +0.27%

Soybean Meal May 20 298.5s +0.9 +0.30%

Soybean Meal Jul 20 303.5s +0.8 +0.26%

 

Soybean Oil Mar 20 30.34s -0.14 -0.46%

Soybean Oil May 20 30.70s -0.14 -0.45%

Soybean Oil Jul 20 31.08s -0.14 -0.45%

 

Corn Mar 20 380-4s -2-4 -0.65%

Corn May 20 385-2s -2-2 -0.58%

Corn Jul 20 388-2s -2-2 -0.58%

Corn Sep 20 386-4s -2-0 -0.51%

Corn Dec 20 390-6s -2-4 -0.64%

 

Oats Mar 20 301-2s -2-2 -0.74%

Oats May 20 300-2s -1-6 -0.58%

Oats Jul 20 293-6s -1-6 -0.59%

Oats Sep 20 278-0s -1-4 -0.54%

Oats Dec 20 268-4s -2-0 -0.74%

 

Wheat Mar 20 565-2s -1-4 -0.26%

Wheat May 20 562-4s -2-4 -0.44%

Wheat Jul 20 561-2s -1-2 -0.22%

Wheat Sep 20 567-0s -1-0 -0.18%

Wheat Dec 20 576-4s -0-4 -0.09%

 

Minneapolis

Spring Wheat Mar 20 536-2s -3-6 -0.69%

Spring Wheat May 20 546-4s -3-0 -0.55%

Spring Wheat Jul 20 555-2s -2-2 -0.40%

Spring Wheat Sep 20 564-4s -1-6 -0.31%

Spring Wheat Dec 20 576-0s -1-6 -0.30%

 

Kansas City

Hard Red Wheat Mar 20 479-6s -6-0 -1.24%

Hard Red Wheat May 20 486-6s -6-2 -1.27%

Hard Red Wheat Jul 20 493-6s -6-2 -1.25%

Hard Red Wheat Sep 20 501-6s -5-4 -1.08%

Hard Red Wheat Dec 20 513-2s -4-6 -0.92%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 20 121.300s -0.125 -0.10%

Live Cattle Apr 20 120.800s +0.200 +0.17%

Live Cattle Jun 20 112.300s +0.100 +0.09%

 

Feeder Cattle Mar 20 140.775s +1.475 +1.06%

Feeder Cattle Apr 20 143.025s +1.250 +0.88%

Feeder Cattle May 20 144.375s +0.600 +0.42%

 

Lean Hogs Apr 20 67.575s +2.075 +3.17%

Lean Hogs May 20 75.300s +1.750 +2.38%

Lean Hogs Jun 20 83.175s +1.800 +2.21%

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