Canola futures drop; wheat down too

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Monday, caught up in a slide in the Chicago soy complex.

Also, European rapeseed and Malaysian palm oil lost ground, which further weighed on canola.

After parts of the Prairies received rain over the weekend, the MarketsFarm forecast has called for warm temperatures this week. Cooler temperatures are to follow along with the chance of frost. A weather premium has remained on bids as frost becomes more likely.

The lighter volumes today suggested farmers were increasingly busy with the cereal harvest and the start of the canola harvest, according to a trader.

As the Pro Farmer Crop Tour got underway today in the United States Midwest, the trader commented the first day’s findings could push canola prices down directly or through spillover from Chicago.

There were 7,485 contracts traded on Monday, which compares with Friday when 11,459 contracts changed hands. Spreading accounted for 2,480 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Nov 450.20 dn 2.20
Jan 457.70 dn 2.30
Mar 464.30 dn 2.20
May 469.80 dn 2.10

SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Monday, as buying was limited. Also, the risk premiums were removed as there were fewer concerns about the weather.

Ahead of this afternoon’s weekly crop progress report from the United States Department of Agriculture (USDA), market predictions pegged soybeans to increase one to two percent from last week’s 54 per cent good to excellent condition.

In the USDA’s export inspections for the week ending August 15; about 1.16 million tonnes of wheat were shipped, for an increase of 22 per cent from the previous week. More than 551,230 tonnes was destined for China.

A heat wave, with daytime temperatures reaching up to the mid-40’s Celsius, is expected over the U.S. Midwest and southern Plains this week.

The White House indicated there will be more trade talks with China over the phone in the coming weeks, with hopes for face-to-face negotiations in Washington. Also, the Trump administration granted technology giant Huawei a 90-day license to continue doing business in the U.S.

CORN futures were weaker on Monday, due rain over the Corn Belt during the weekend and a round of profit-taking.

The Pro Farmer Crop Tour began today and continues until Thursday across the Midwest, with groups that started from western and eastern ends of the Corn Belt. Early reports from the tour indicated corn was behind and needs time to mature.

Trade expectations for corn conditions were from unchanged to up one per cent from last week’s rating of 57 per cent good to excellent.

USDA export inspections showed shipments of more than 510,330 tonnes of corn for the week ending August 15. That’s down 30 per cent from the previous week. Mexico was the largest customer at more than 270,150 tonnes.

WHEAT futures were lower on Monday, in sympathy with soybean and corn.

Trade expectations were for wheat conditions to remain unchanged at 64 per cent good to excellent. The U.S. winter wheat was estimated at 94 per cent complete and the spring wheat harvest expected to be 21 per cent complete.

There was approximately 488,980 tonnes of wheat shipped, according to export inspections. That was slightly better than the previous week’s shipments. Mexico was the primary destination at almost 101,000 tonnes.

Morocco has tendered for 576,000 tonnes of milling wheat and 345,450 tonnes of U.S. durum under a preferential tariff quota.

Romania was reportedly barred from selling wheat to Algeria due to the latter’s strict rules on bug damage. This would be good news for France, which has been Algeria’s main source of wheat, but faced increased competition from Romania.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up $1.34 at US$56.21 per barrel.

In the afternoon, the Canadian dollar was trading around US75.20 cents, down from 75.27 cents the previous trading day. The U.S. dollar was C$1.3298.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 19 450.20s -2.20 -0.49%

Canola Jan 20 457.70s -2.30 -0.50%

Canola Mar 20 464.30s -2.20 -0.47%

Canola May 20 469.80s -2.10 -0.45%

Canola Jul 20 475.00s -1.90 -0.40%

 

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 Sep 19 854-0s -13-2 -1.53%

Soybean Nov 19 866-4s -13-2 -1.51%

Soybean Jan 20 880-4s -13-0 -1.45%

Soybean Mar 20 893-6s -12-6 -1.41%

Soybean May 20 905-4s -12-0 -1.31%

 

Soybean Meal Sep 19 292.0s -2.9 -0.98%

Soybean Meal Oct 19 293.9s -2.9 -0.98%

Soybean Meal Dec 19 297.2s -3.1 -1.03%

 

Soybean Oil Sep 19 28.68s -0.45 -1.54%

Soybean Oil Oct 19 28.80s -0.45 -1.54%

Soybean Oil Dec 19 29.04s -0.47 -1.59%

 

Corn Sep 19 365-0s -6-0 -1.62%

Corn Dec 19 374-4s -6-2 -1.64%

Corn Mar 20 387-0s -5-6 -1.46%

Corn May 20 394-2s -5-6 -1.44%

Corn Jul 20 400-4s -5-2 -1.29%

 

Oats Sep 19 270-2s -10-0 -3.57%

Oats Dec 19 271-6s -2-4 -0.91%

Oats Mar 20 276-2s -2-0 -0.72%

Oats May 20 275-2s -2-2 -0.81%

Oats Jul 20 277-0s -2-0 -0.72%

 

Wheat Sep 19 465-4s -5-2 -1.12%

Wheat Dec 19 472-4s -5-0 -1.05%

Wheat Mar 20 479-4s -4-4 -0.93%

Wheat May 20 485-0s -4-6 -0.97%

Wheat Jul 20 489-6s -5-2 -1.06%

 

Minneapolis

Spring Wheat Sep 19 505-4s -0-6 -0.15%

Spring Wheat Dec 19 517-0s -1-4 -0.29%

Spring Wheat Mar 20 531-6s -1-2 -0.23%

Spring Wheat May 20 542-0s -1-0 -0.18%

Spring Wheat Jul 20 552-0s -0-6 -0.14%

 

Kansas City

Hard Red Wheat Sep 19 391-2s -3-0 -0.76%

Hard Red Wheat Dec 19 406-6s -2-6 -0.67%

Hard Red Wheat Mar 20 422-4s -3-0 -0.71%

Hard Red Wheat May 20 433-2s -3-0 -0.69%

Hard Red Wheat Jul 20 443-0s -3-4 -0.78%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Aug 19 100.200s +0.275 +0.28%

Live Cattle Oct 19 98.225s +0.175 +0.18%

Live Cattle Dec 19 103.725s +0.200 +0.19%

 

Feeder Cattle Aug 19 135.675s +1.100 +0.82%

Feeder Cattle Sep 19 132.825s +0.450 +0.34%

Feeder Cattle Oct 19 133.175s +0.325 +0.24%

 

Lean Hogs Oct 19 64.025s +2.025 +3.27%

Lean Hogs Dec 19 62.850s +2.075 +3.41%

Lean Hogs Feb 20 69.725s +1.700 +2.50%

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