Canola futures firm in thin trade, MGEX wheat down hard

(Reuters) – ICE Canada canola futures closed slightly firmer on Friday, rebounding from Thursday’s declines, traders said.

Volume was light.

A firm Canadian dollar limited buying.

November canola settled up 70 cents at $506.90 per tonne. January canola ended up 80 cents at $512.

Volume totalled 5,965, down 70 percent from Thursday.

Chicago Board of Trade November soybeans settled up 4-3/4 cents at US$9.45 a bushel on a round of bargain buying.

NYSE MATIF November rapeseed rose 1.02 percent while Malaysian October palm oil rose 0.71 percent.

U.S. wheat futures fell, led lower by a sharp decline in MGEX spring wheat as investors liquidated bullish positions following the U.S. Department of Agriculture’s forecast for a bigger-than-expected crop in the northern Plains, traders said.

The selloff pushed the benchmark Chicago Board of Trade soft red winter wheat contract to its lowest in nearly two months. MGEX spring wheat ended down 4.2 percent and hit its lowest since June 26, pressured by the USDA’s outlook for a bigger-than-expected crop in the northern Plains.

Chicago soybean and corn futures edged higher with mild bargain buying underpinning prices.

All three posted weekly declines as the USDA’s forecast on Thursday for bumper corn and soybean harvests continued to hang over the market.

Wheat futures have fallen for five straight weeks and corn and soybeans for three.

Chicago Board of Trade September soft red winter wheat futures ended down 1-1/4 cents at $4.39-1/4 a bushel. MGEX spring wheat for September delivery shed 29-1/4 cents to $6.74 a bushel.

“From a technical standpoint, I don’t like the trade action, breaking that $7 number,” said Jason Ward, analyst with Northstar Commodity Investment Co. “That was a very big support area that broke.”

CBOT November soybeans were 4-3/4 cents higher at $9.45 a bushel and CBOT December corn was up 3-3/4 cents at $3.74-3/4 a bushel.

The USDA on Thursday projected the U.S. corn yield at 169.5 bushels per acre, below its previous forecast of 170.7, but well above the average trade estimate of 166.2 bushels per acre.

The USDA also wrong-footed investors by increasing its soybeans yield forecast to 49.4 bushels per acre from 48.0, rather than trimming it as expected.

Traders have been grappling with erratic crop weather that has left some crop belts parched and others soggy. Rainfall was forecast to be limited this week in much of the Midwest, but heavy rain was projected toward the end of next week.

“Market attention now turns back to weather, with yield potential for U.S. soybeans and corn remaining the key focal point for the next month,” Rabobank analysts said in a research note.

Wheat markets remained dampened by the USDA’s supply outlook, which included a sharp increase in projected global wheat stocks in 2017-18, supported by increased estimates for Russian, Ukrainian and Kazakh crops.

Russian consultancies SovEcon and IKAR on Friday gave similar estimates for the world’s biggest wheat exporter last season.

Light crude oil nearby futures in New York were up 23 cents US$48.82 per barrel.

In the afternoon, the Canadian dollar was trading around US78.86 cents, up from 78.49 cents the previous trading day. The U.S. dollar was C$1.2681.

Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 17   506.90s   +0.70   +0.14%
Canola Jan 18   512.00s   +0.80   +0.16%
Canola Mar 18   515.60s   +0.70   +0.14%
Canola May 18   517.40s   +0.30   +0.06%
Canola Jul 18   519.30s   +0.70   +0.13%

Milling Wheat Oct 17   265.00s   -12.00   -4.33%
Milling Wheat Dec 17   268.00s   -12.00   -4.29%
Milling Wheat Mar 18   274.00s   -11.00   -3.86%

Durum Wheat Oct 17   335.00s   +15.00   +4.69%
Durum Wheat Dec 17   336.00s   +15.00   +4.67%
Durum Wheat Mar 18   311.00s   +15.00   +5.07%

Barley Oct 17   145.00s   unch   unch
Barley Dec 17   141.00s   unch   unch
Barley Mar 18   141.00s   unch   unch

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

Soybeans Aug 17   935-4s   +4-6   +0.51%
Soybeans Sep 17   938-2s   +4-2   +0.46%

Soybeans Nov 17   945-0s   +4-6   +0.51%
Soybeans Jan 18   953-6s   +4-6   +0.50%
Soybeans Mar 18   962-0s   +5-2   +0.55%

Soybean Meal Aug 17   298.1s   +3.9   +1.33%
Soybean Meal Sep 17   299.5s   +3.7   +1.25%
Soybean Meal Oct 17   301.2s   +3.7   +1.24%

Soybean Oil Aug 17   33.53s   -0.21   -0.62%
Soybean Oil Sep 17   33.63s   -0.16   -0.47%
Soybean Oil Oct 17   33.74s   -0.17   -0.50%

Corn Sep 17   360-6s   +3-4   +0.98%
Corn Dec 17   374-6s   +3-6   +1.01%
Corn Mar 18   386-4s   +3-4   +0.91%
Corn May 18   392-6s   +3-4   +0.90%
Corn Jul 18   398-4s   +4-0   +1.01%

Oats Sep 17   264-0s   -2-0   -0.75%
Oats Dec 17   263-2s   -3-6   -1.40%
Oats Mar 18   267-0s   -3-6   -1.39%
Oats May 18   268-4s   -3-6   -1.38%
Oats Jul 18   270-0s   -3-6   -1.37%

Wheat Sep 17   439-2s   -1-2   -0.28%
Wheat Dec 17   467-0s   -1-6   -0.37%
Wheat Mar 18   488-6s   -1-4   -0.31%
Wheat May 18   503-6s   -1-4   -0.30%
Wheat Jul 18   513-2s   -1-0   -0.19%

Minneapolis

Spring Wheat Sep 17   674-0s   -29-2   -4.16%
Spring Wheat Dec 17   688-2s   -27-2   -3.81%
Spring Wheat Mar 18   690-2s   -25-0   -3.50%
Spring Wheat May 18   680-6s   -22-4   -3.20%
Spring Wheat Jul 18   672-2s   -19-2   -2.78%

Kansas

Hard Red Wheat Sep 17   441-2s   -7-0   -1.56%
Hard Red Wheat Dec 17   469-2s   -6-4   -1.37%
Hard Red Wheat Mar 18   487-2s   -6-4   -1.32%
Hard Red Wheat May 18   501-2s   -6-4   -1.28%
Hard Red Wheat Jul 18   517-4s   -5-4   -1.05%

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle  Aug 17   109.725s   +0.875   +0.80%
Live Cattle  Oct 17   107.400s   +0.800   +0.75%
Live Cattle  Dec 17   109.325s   +0.725   +0.67%

Feeder Cattle  Aug 17   141.775s   +0.600   +0.43%
Feeder Cattle  Sep 17   142.225s   +0.925   +0.65%
Feeder Cattle  Oct 17   141.600s   +1.125   +0.80%

Lean Hogs  Aug 17   84.650s   +0.200   +0.24%
Lean Hogs  Oct 17   68.625s   +0.650   +0.96%
Lean Hogs  Dec 17   63.250s   +0.550   +0.88%

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