Canola futures drop with financial markets

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Monday, as the outbreak of a coronavirus in China hampered financial markets by calling future demand needs into question.

The trader noted that although canola values dropped significantly, canola is doing rather well compared to United States markets. But canola “can’t resist being dragged lower” by soybean weakness.

Relative weakness to the Canadian dollar provided some support to canola values. The dollar was at 75.85 cents at midday.

On Monday, 35,462 contracts were traded, which compares with Friday when 27,115 contracts changed hands. Spreading accounted for 23,982 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) started the week lower, pressured by concerns of “when and how many” soybeans China may buy. The recent viral outbreak has exacerbated that uncertainty.

The coronavirus outbreak in China has called future demand levels into question. These concerns were compounded by record-high soybean production levels in Brazil.

According to the United States Department of Agriculture (USDA), last week, soybean export inspections totalled just over one million tonnes. That’s slightly lower from the previous week, but is almost 10 percent higher when compared to the same time last year.

Marketing year-to-date soybean shipments are at just over 25 million tonnes, which is about five million tonnes higher when compared to the same time last year.

CORN futures finished lower today, due to concerns of a global economic slowdown tied to China’s coronavirus.

This morning, the USDA reported a private export sale of just over 111,000 tonnes of corn, purchased by Japan.

In the Grain Inspections update for last week, the USDA reported that corn exports totaled just over 668,000 tonnes. That’s almost 69 per cent higher than the previous week.

Marketing year-to-date corn shipments total approximately 10 million tonnes, which is approximately half of last year’s pace.

The USDA supply demand report increased U.S. corn production numbers to total 13.692 billion bushels. In last month’s report, the projected total was 13.661 billion bushels.

WHEAT futures were mixed on Monday, weighed down by similar economic outlook concerns. Minneapolis Hard Red Wheat ended slightly higher while winter wheats incurred losses.

The USDA’s weekly export inspections report showed wheat exports totaled almost 224,000 tonnes last week.

Marketing year-to-date shipments were at 16.2 million tonnes, which remains ahead of last year’s pace.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.05 at US$53.14 per barrel.

In the afternoon, the Canadian dollar was trading around US75.86 cents, up from 76.10 cents the previous trading day. The U.S. dollar was C$1.3182.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 20 461.50s -8.00 -1.70%

Canola May 20 470.60s -8.00 -1.67%

Canola Jul 20 476.90s -7.60 -1.57%

Canola Nov 20 484.30s -5.70 -1.16%

Canola Jan 21 490.30s -5.60 -1.13%

 

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 -4-6 -0.53%

Soybean May 20 911-0s -4-6 -0.52%

Soybean Jul 20 924-4s -5-0 -0.54%

Soybean Aug 20 929-2s -5-0 -0.54%

Soybean Sep 20 929-2s -5-0 -0.54%

 

Soybean Meal Mar 20 297.8s -0.5 -0.17%

Soybean Meal May 20 302.3s -0.2 -0.07%

Soybean Meal Jul 20 306.5s -0.3 -0.10%

 

Soybean Oil Mar 20 31.52s -0.50 -1.56%

Soybean Oil May 20 31.88s -0.49 -1.51%

Soybean Oil Jul 20 32.25s -0.49 -1.50%

 

Corn Mar 20 380-4s -6-6 -1.74%

Corn May 20 386-6s -6-0 -1.53%

Corn Jul 20 392-2s -5-4 -1.38%

Corn Sep 20 391-6s -4-0 -1.01%

Corn Dec 20 395-2s -3-0 -0.75%

 

Oats Mar 20 300-4s -2-6 -0.91%

Oats May 20 295-2s -3-4 -1.17%

Oats Jul 20 286-4s -3-0 -1.04%

Oats Sep 20 268-0s -1-4 -0.56%

Oats Dec 20 267-0s +2-2 +0.85%

 

Wheat Mar 20 572-2s -1-2 -0.22%

Wheat May 20 571-2s -1-2 -0.22%

Wheat Jul 20 570-6s -2-2 -0.39%

Wheat Sep 20 576-4s -1-6 -0.30%

Wheat Dec 20 584-6s -1-4 -0.26%

 

Minneapolis

Spring Wheat Mar 20 547-2s -0-2 -0.05%

Spring Wheat May 20 556-6s -0-2 -0.04%

Spring Wheat Jul 20 564-2s -0-6 -0.13%

Spring Wheat Sep 20 573-2s +0-2 +0.04%

Spring Wheat Dec 20 584-0s +0-6 +0.13%

 

Kansas City

Hard Red Wheat Mar 20 486-4s +0-4 +0.10%

Hard Red Wheat May 20 494-2s +0-6 +0.15%

Hard Red Wheat Jul 20 501-4s +0-6 +0.15%

Hard Red Wheat Sep 20 509-0s +0-2 +0.05%

Hard Red Wheat Dec 20 519-4s +0-2 +0.05%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 20 122.250s -2.600 -2.08%

Live Cattle Apr 20 121.300s -3.000 -2.41%

Live Cattle Jun 20 113.025s -3.000 -2.59%

 

Feeder Cattle Jan 20 141.900s +0.050 +0.04%

Feeder Cattle Mar 20 135.175s -4.500 -3.22%

Feeder Cattle Apr 20 138.000s -4.500 -3.16%

 

Lean Hogs Feb 20 65.950s -1.275 -1.90%

Lean Hogs Apr 20 70.450s -3.000 -4.08%

Lean Hogs May 20 76.975s -3.000 -3.75%

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