Canola futures drop sharply

Winnipeg (MarketsFarm) – The ICE Futures canola market was down sharply on Tuesday, breaking below nearby chart support as speculators turned to the sell side.

Recent rainfall across Western Canada accounted for some of the selling pressure, as dryness concerns have alleviated somewhat. Losses in Chicago Board of Trade soybeans and soyoil also weighed on values.

However, many of the driest canola growing areas of Saskatchewan only received minimal precipitation, and total canola production is expected to be down on the year.

Statistics Canada will release updated acreage estimates on Wednesday, June 26. General expectations are for a decline in the canola number from earlier estimates, but the extent of the revision remains to be seen.

About 22,315 canola contracts traded on Tuesday, which compares with Monday when 17,686 contracts changed hands. Spreading accounted for 12,978 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, retreating from earlier gains by the close.

The United States soybean crop was 85 per cent seeded as of this past Sunday, according to the latest weekly U.S. Department of Agriculture report. That was well behind the 5-year average of 97 per cent done.

While the slow seeding pace was supportive, the market ran into resistance to the upside, as forecasts calling for some better weather over the next week should allow farmers to get in more of the bean crop.

The USDA will release updated acreage estimates on Friday, but traders are uncertain if this report will show the extent of the lost acres due to wet weather.

Optimism over U.S. and China trade relations provided some support, as the leaders of the two countries are set to meet at the G20 in Japan later this week.

CORN held onto small gains in the most active months on Tuesday.
The U.S. corn crop was 96 per cent seeded in the latest report – with the last four per cent of intended acres unlikely to be planted at this time.

Condition ratings declined four points on the week, to come in at 55 per cent good-to-excellent. Development was running behind normal.

WHEAT was narrowly mixed on the day, with gains in Minneapolis spring wheat and a steady to softer tone in the winter wheats.

U.S. wheat condition ratings declined in the latest weekly report, with spring wheat down two points at 75 per cent good-to-excellent and winter wheat down three points at 61 per cent good to excellent.

The U.S. winter wheat harvest was 15 per cent complete, which is well off the 34 per cent average for this time of year.
Hot and dry weather in Europe was also supportive for wheat.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down seven cents at US$57.83 per barrel.

In the afternoon, the Canadian dollar was trading around US75.91 cents, up from 75.79 cents the previous trading day. The U.S. dollar was C$1.3174.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 19  445.80s  -6.30  -1.39%

Canola Nov 19  456.10s  -9.00  -1.94%

Canola Jan 20  463.40s  -8.70  -1.84%

Canola Mar 20  469.90s  -8.60  -1.80%

Canola May 20  474.80s  -8.40  -1.74%

 

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 Jul 19  903-4s  -5-4  -0.61%

Soybean Aug 19  908-6s  -6-0  -0.66%

Soybean Sep 19  914-4s  -6-0  -0.65%

Soybean Nov 19  926-4s  -6-2  -0.67%

Soybean Jan 20  938-2s  -7-2  -0.77%

 

Soybean Meal Jul 19  315.7s  -1.9  -0.60%

Soybean Meal Aug 19  317.0s  -1.9  -0.60%

Soybean Meal Sep 19  318.4s  -2.2  -0.69%

 

Soybean Oil Jul 19  28.00s  -0.35  -1.23%

Soybean Oil Aug 19  28.14s  -0.34  -1.19%

Soybean Oil Sep 19  28.25s  -0.34  -1.19%

 

Corn Jul 19  447-4s  +0-6  +0.17%

Corn Sep 19  453-0s  +1-2  +0.28%

Corn Dec 19  457-4s  +0-2  +0.05%

Corn Mar 20  462-0s  -1-0  -0.22%

Corn May 20  463-0s  -2-2  -0.48%

 

Oats Jul 19  271-4s  +1-0  +0.37%

Oats Sep 19  273-0s  +0-2  +0.09%

Oats Dec 19  276-0s  -0-4  -0.18%

Oats Mar 20  279-0s  -1-2  -0.45%

Oats May 20  277-6s  -1-6  -0.63%

 

Wheat Jul 19  535-6s  -2-2  -0.42%

Wheat Sep 19  540-0s  -2-4  -0.46%

Wheat Dec 19  550-4s  -2-0  -0.36%

Wheat Mar 20  560-0s  -2-2  -0.40%

Wheat May 20  562-2s  -2-0  -0.35%

 

Minneapolis

Spring Wheat Jul 19  548-4s  +5-0  +0.92%

Spring Wheat Sep 19  557-0s  +3-6  +0.68%

Spring Wheat Dec 19  570-0s  +3-0  +0.53%

Spring Wheat Mar 20  583-4s  +3-2  +0.56%

Spring Wheat May 20  591-4s  +3-2  +0.55%

 

Kansas City

Hard Red Wheat Jul 19  465-2s  -0-2  -0.05%

Hard Red Wheat Sep 19  478-2s  +0-6  +0.16%

Hard Red Wheat Dec 19  500-0s  +1-0  +0.20%

Hard Red Wheat Mar 20  519-2s  +0-2  +0.05%

Hard Red Wheat May 20  531-0s  unch  unch

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle (Pit) Jun 19  107.750s  +0.825 +0.77%

Live Cattle (Pit) Aug 19  103.250s  +0.825  +0.81%

Live Cattle (Pit) Oct 19  104.850s  +0.825  +0.79%

 

Feeder Cattle (Pit) Aug 19  131.325s  -0.450 -0.34%

Feeder Cattle (Pit) Sep 19  131.875s  -0.475 -0.36%

Feeder Cattle (Pit) Oct 19  132.300s  -0.300 -0.23%

 

Lean Hogs (Pit) Jul 19  74.400s  +1.550  +2.13%

Lean Hogs (Pit) Aug 19  76.175s  +1.950  +2.63%

Lean Hogs (Pit) Oct 19  69.900s  +0.850  +1.23%

 

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