Canola futures finish stronger

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished stronger on Wednesday, as there are few farmers selling at this time, according to an analyst.

Also, canola benefitted from gains in Chicago soyoil and European rapeseed, but these were tempered by losses in Malaysian palm oil.

A trader pointed out the markets have yet to be affected by the dozens of demonstrations across Canada that are impeding commercial traffic. These demonstrations have been in support of Wet’suwet’en Nation in British Columbia, who have been protesting against the new Coastal GasLink pipeline crossing their traditional territory.

There were 31,199 contracts traded on Wednesday, which compares with Tuesday when 23,222 contracts changed hands. Spreading accounted for 25,314 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Mar 463.40 up 4.00
May 472.60 up 4.00
Jul 478.90 up 3.60
Nov 486.00 up 3.80

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger Wednesday on hopes that China will soon begin purchasing its US$40 billion in United States agricultural goods.

Following yesterday’s supply and demand report from the United States Department of Agriculture (USDA), the markets’ focus shifted towards those hopes. However, indications have been mixed as to when China will boost its U.S. ag imports as outlined in the Phase One trade agreement. White House National Security Advisor Robert O’Brien commented on Tuesday that the coronavirus could impact China’s purchases in 2020.

Also, the markets have focused on South American soybean production. In Tuesday’s report the USDA projected Argentina, Brazil, Paraguay and Uruguay to produce approximately 190 million tonnes of soybeans, with about 65 per cent of it from Brazil.

The USDA’s weekly export sales report will be released Thursday morning. Trade expectations for soybean sales are 600,000 to 1.0 million tonnes. Soymeal is expected to come in at 125,000 to 400,000 tonnes. Soyoil projections are from 7,000 to 30,000 tonnes.

CORN futures were higher on Wednesday due to bargain hunter buying and spillover from Chicago wheat.

Reports stated there still are farmers in North Dakota attempting to harvest their corn, despite the winter conditions. The quality of the corn harvested was said to be comparable to that coming off the fields last fall.

The U.S. Energy Information Administration reported that ethanol production slipped 48,000 barrels per day (BPD) at 1.03 million BPD. Ethanol stocks were at 24.4 million barrels, only 100,000 barrels shy of the record stocks set in July 2019.

Market predictions for corn export sales are from 700,000 to 1.3 million tonnes.

Argentina’s corn production has been estimated at 48.0 to 52.0 million tonnes. Recent precipitation has caused forecasts to vary.

WHEAT futures were steady to higher on Wednesday, with Minneapolis steady while Chicago and Kansas City were up.

Weekly export wheat sales are forecast to be 300,000 to 700,000 tonnes.

The Agriculture Ministry in France reduced its estimate of the country’s soft wheat acres on Tuesday by 74,000 acres. After contending with heavy rainfall, it’s expected French farmers will plant approximately 11.6 million acres. Not only is France the European Union’s largest wheat producer, it’s also fourth globally.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up $1.23 at US$51.17 per barrel.

In the afternoon, the Canadian dollar was trading around US75.45 cents, down from 75.23 cents the previous trading day. The U.S. dollar was C$1.3254.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 20 463.40s +4.00 +0.87%

Canola May 20 472.60s +4.00 +0.85%

Canola Jul 20 478.90s +3.60 +0.76%

Canola Nov 20 486.00s +3.80 +0.79%

Canola Jan 21 492.40s +3.70 +0.76%

 

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 20 892-4s +7-6 +0.88%

Soybean May 20 903-4s +6-2 +0.70%

Soybean Jul 20 914-6s +4-4 +0.49%

Soybean Aug 20 919-0s +4-2 +0.46%

Soybean Sep 20 918-0s +3-0 +0.33%

 

Soybean Meal Mar 20 291.7s +0.9 +0.31%

Soybean Meal May 20 297.4s +0.9 +0.30%

Soybean Meal Jul 20 302.7s +0.8 +0.26%

 

Soybean Oil Mar 20 31.03s +0.31 +1.01%

Soybean Oil May 20 31.40s +0.32 +1.03%

Soybean Oil Jul 20 31.77s +0.31 +0.99%

 

Corn Mar 20 383-0s +3-2 +0.86%

Corn May 20 387-2s +3-0 +0.78%

Corn Jul 20 390-2s +2-0 +0.52%

Corn Sep 20 388-6s +1-2 +0.32%

Corn Dec 20 393-0s +1-0 +0.26%

 

Oats Mar 20 304-0s +4-6 +1.59%

Oats May 20 299-4s +3-0 +1.01%

Oats Jul 20 292-6s +3-4 +1.21%

Oats Sep 20 274-2s +2-2 +0.83%

Oats Dec 20 269-4s -0-2 -0.09%

 

Wheat Mar 20 547-4s +5-4 +1.01%

Wheat May 20 548-4s +4-4 +0.83%

Wheat Jul 20 549-0s +4-2 +0.78%

Wheat Sep 20 555-0s +3-6 +0.68%

Wheat Dec 20 564-6s +3-6 +0.67%

 

Minneapolis

Spring Wheat Mar 20 531-2s unch unch

Spring Wheat May 20 540-4s -0-4 -0.09%

Spring Wheat Jul 20 549-0s -0-4 -0.09%

Spring Wheat Sep 20 557-6s -0-6 -0.13%

Spring Wheat Dec 20 569-4s -0-6 -0.13%

 

Kansas City

Hard Red Wheat Mar 20 471-0s +2-6 +0.59%

Hard Red Wheat May 20 477-2s +3-0 +0.63%

Hard Red Wheat Jul 20 483-4s +2-4 +0.52%

Hard Red Wheat Sep 20 491-0s +2-2 +0.46%

Hard Red Wheat Dec 20 502-4s +2-2 +0.45%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 20 118.950s -0.125 -0.10%

Live Cattle Apr 20 117.850s +0.675 +0.58%

Live Cattle Jun 20 109.925s +0.800 +0.73%

 

Feeder Cattle Mar 20 135.050s +0.375 +0.28%

Feeder Cattle Apr 20 137.175s +0.450 +0.33%

Feeder Cattle May 20 139.050s +0.575 +0.42%

 

Lean Hogs Feb 20 55.675s -0.450 -0.80%

Lean Hogs Apr 20 63.775s -0.450 -0.70%

Lean Hogs May 20 72.950s -0.850 -1.15%

 

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