Canola futures drop on speculative selling

Winnipeg, (MarketsFarm) – The ICE Futures canola market declined to its lowest levels in three weeks on Monday, testing key chart support as speculative selling weighed on prices.

Losses in Chicago Board of Trade soyoil and the ongoing strike at Canadian National Railway added to the bearish tone, according to participants.

However, good demand from domestic crushers provided some underlying support.

A softer tone in the Canadian dollar also helped underpin the market.

About 19,887 canola contracts traded on Monday, which compares with Friday when 12,359 contracts changed hands. Spreading accounted for 14,920 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, as large losses in soyoil spilled over to weigh on values.

Uncertainty over trade talks between the United States and China kept some caution in the market, as investors grow tired of the endless stream of conflicting reports.

Solid weekly export inspections of 1.9 million tonnes were somewhat supportive, with total inspections running ahead of last year’s pace, according to the latest data.

U.S. markets will be closed this Thursday for Thanksgiving, and positioning ahead of the holiday is expected to be a feature the next two days.

CORN was higher, as forecasts calling for adverse weather across much of the northern Plains and Midwest over the next week were somewhat supportive. About five to 15 per cent of the U.S. corn crop still unharvested.

Weekly U.S. corn export inspections at just over 600,000 tonnes were in line with the previous week, but about half of what moved during the same week a year ago.

Total U.S. corn export inspections during the crop year to date of 5.6 million tonnes are running well behind last year’s pace.

The USDA released a correction to private export sales of 132,000 and 119,000 tonnes announced last week, as the business was actually soybean sales and not corn.

WHEAT futures posted solid gains, with the largest advances in Chicago soft wheat.

Cool and wet conditions across the U.S. winter wheat growing regions gave the market a boost, as the weather could hurt the crop before it enters dormancy.

Weekly U.S. wheat export inspections came in at about 421,000 tonnes. That was down slightly from the previous week, but up on the year. Total U.S. wheat export inspections during the marketing year to date are running about 22 per cent ahead of the 2018 pace.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 24 cents at US$58.01 per barrel.

In the afternoon, the Canadian dollar was trading around US75.15 cents, down from 75.26 cents the previous trading day. The U.S. dollar was C$1.3307.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 20 459.40s -4.90 -1.06%

Canola Mar 20 468.70s -4.70 -0.99%

Canola May 20 476.60s -4.50 -0.94%

Canola Jul 20 482.90s -4.50 -0.92%

Canola Nov 20 483.80s -3.60 -0.74%

 

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 20 892-4s -4-4 -0.50%

Soybean Mar 20 907-0s -4-2 -0.47%

Soybean May 20 921-0s -4-0 -0.43%

Soybean Jul 20 933-2s -3-6 -0.40%

Soybean Aug 20 937-4s -3-2 -0.35%

 

Soybean Meal Dec 19 298.3s -0.7 -0.23%

Soybean Meal Jan 20 300.6s -0.6 -0.20%

Soybean Meal Mar 20 303.5s -0.3 -0.10%

 

Soybean Oil Dec 19 30.44s -0.44 -1.42%

Soybean Oil Jan 20 30.59s -0.47 -1.51%

Soybean Oil Mar 20 30.88s -0.47 -1.50%

 

Corn Dec 19 370-4s +1-6 +0.47%

Corn Mar 20 380-6s +2-2 +0.59%

Corn May 20 386-4s +2-6 +0.72%

Corn Jul 20 392-0s +3-2 +0.84%

Corn Sep 20 391-4s +3-0 +0.77%

 

Oats Dec 19 314-6s +3-2 +1.04%

Oats Mar 20 320-6s +3-2 +1.02%

Oats May 20 317-0s +3-0 +0.96%

Oats Jul 20 306-2s +3-0 +0.99%

Oats Sep 20 291-0s +2-2 +0.78%

 

Wheat Dec 19 531-0s +15-6 +3.06%

Wheat Mar 20 533-0s +14-2 +2.75%

Wheat May 20 536-4s +13-6 +2.63%

Wheat Jul 20 536-0s +12-0 +2.29%

Wheat Sep 20 542-2s +11-2 +2.12%

 

Minneapolis

Spring Wheat Dec 19 498-2s +5-4 +1.12%

Spring Wheat Mar 20 513-0s +6-2 +1.23%

Spring Wheat May 20 521-0s +4-4 +0.87%

Spring Wheat Jul 20 530-6s +4-0 +0.76%

Spring Wheat Sep 20 541-0s +3-6 +0.70%

 

Kansas City

Hard Red Wheat Dec 19 435-4s +11-4 +2.71%

Hard Red Wheat Mar 20 445-2s +12-0 +2.77%

Hard Red Wheat May 20 452-4s +12-0 +2.72%

Hard Red Wheat Jul 20 459-6s +11-6 +2.62%

Hard Red Wheat Sep 20 468-6s +11-4 +2.52%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 19 119.700s +1.025 +0.86%

Live Cattle Feb 20 125.150s +1.300 +1.05%

Live Cattle Apr 20 125.225s +1.050 +0.85%

 

Feeder Cattle Jan 20 141.975s +2.700 +1.94%

Feeder Cattle Mar 20 142.350s +2.750 +1.97%

Feeder Cattle Apr 20 143.750s +2.650 +1.88%

 

Lean Hogs Dec 19 61.025s -0.200 -0.33%

Lean Hogs Feb 20 67.750s +0.100 +0.15%

Lean Hogs Apr 20 73.875s +0.175 +0.24%

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