Canola futures follow corn and soybeans lower

Winnipeg, (MarketsFarm) – The ICE Futures canola market was weaker on Monday in sympathy with the much larger losses in Chicago Board of Trade corn and soybeans.

The United States grains and oilseeds were sharply lower on Monday, with limit-down losses in corn in reaction to updated acreage and production numbers from the U.S. Department of Agriculture.

Larger than expected corn and wheat crop estimates weighed on those markets, with soybean prices also down on the day despite more supportive supply/demand numbers.

Canola lagged its U.S. counterparts to the downside, with last week’s rally still providing some support from a technical standpoint.

Reports of frost in some areas of the Peace River region overnight were also supportive, with yields likely hurt by the cooler temperatures.

About 17,615 canola contracts traded on Monday, which compares with Friday when 27,090 contracts changed hands. Spreading accounted for 9,720 of the contracts traded.

CORN futures at the Chicago Board of Trade posted limit-down losses of 25 cents per bushel in most months on Monday, as the market reacted to updated acreage and production estimates from the United States Department of Agriculture.

After a resurvey in July, the USDA pegged corn plantings in the country at 90 million acres. That was down slightly from the June report, but well above expectations. The agency surprisingly raised its yield forecast to 169.5 bushels per acre and pegged total production at 13.9 billion bushels, with a harvested area of 82 million acres.

SOYBEANS were down in sympathy with corn, although the soybean numbers from the USDA were mostly supportive.

The government agency pegged seeded soybean area at 76.7 million acres, which compares with the 80 million acre estimate in June.

U.S. soybean production for the year was forecast at 3.68 billion bushels, which would be down by 19 per cent from 2018.

WHEAT futures were all lower, with the largest losses in the winter wheats.

World wheat production for the year was forecast at 768 million tonnes by the USDA, which was down slightly from the July estimate, but still well above the 730.5 million tonnes grown the previous year. World wheat ending stocks were forecast at 285.4 muillion, which would be about 10 million tonnes above the previous year.

Total U.S. wheat production was pegged at 1.98 billion bushels, which was up by 59 million from July. Of the total, spring wheat was actually down one per cent from the June estimate, at 597 million bushels. As a result, Minneapolis futures lagged the Chicago and Kansas City contracts to the downside.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was US$54.78 per barrel.

In the afternoon, the Canadian dollar was at US75.56. The U.S. dollar was C$1.3235.

 

Winnipeg ICE Futures Canada dollars per tonne

Name / Contract Last Change % Change

Canola Nov 19 452.40s -1.70 -0.37%

Canola Jan 20 461.10s -1.50 -0.32%

Canola Mar 20 468.50s -1.20 -0.26%

Canola May 20 474.60s -1.20 -0.25%

Canola Jul 20 480.10s -1.20 -0.25%

 

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 Aug 19 861-4s -12-2 -1.40%

Soybean Sep 19 866-6s -12-2 -1.39%

Soybean Nov 19 879-2s -12-4 -1.40%

Soybean Jan 20 892-6s -12-0 -1.33%

Soybean Mar 20 905-2s -10-6 -1.17%

 

Soybean Meal Aug 19 291.9s -4.8 -1.62%

Soybean Meal Sep 19 293.4s -5.1 -1.71%

Soybean Meal Oct 19 295.2s -5.1 -1.70%

 

Soybean Oil Aug 19 29.64s +0.13 +0.44%

Soybean Oil Sep 19 29.66s +0.08 +0.27%

Soybean Oil Oct 19 29.79s +0.09 +0.30%

 

Corn Sep 19 385-2s -25-0 -6.09%

Corn Dec 19 392-6s -25-0 -5.98%

Corn Mar 20 403-2s -25-0 -5.84%

Corn May 20 409-0s -25-0 -5.76%

Corn Jul 20 412-6s -24-6 -5.66%

 

Oats Sep 19 271-6s -3-0 -1.09%

Oats Dec 19 266-6s -9-0 -3.26%

Oats Mar 20 271-2s -9-0 -3.21%

Oats May 20 270-6s -9-0 -3.22%

Oats Jul 20 271-2s -8-4 -3.04%

 

Wheat Sep 19 471-6s -27-6 -5.56%

Wheat Dec 19 476-2s -25-2 -5.03%

Wheat Mar 20 484-0s -25-0 -4.91%

Wheat May 20 489-6s -24-2 -4.72%

Wheat Jul 20 495-0s -23-0 -4.44%

 

Minneapolis

Spring Wheat Sep 19 509-2s -10-4 -2.02%

Spring Wheat Dec 19 522-0s -8-6 -1.65%

Spring Wheat Mar 20 537-0s -7-4 -1.38%

Spring Wheat May 20 547-0s -6-4 -1.17%

Spring Wheat Jul 20 557-0s -5-6 -1.02%

 

Kansas City

Hard Red Wheat Sep 19 392-2s -24-6 -5.94%

Hard Red Wheat Dec 19 409-0s -24-4 -5.65%

Hard Red Wheat Mar 20 425-2s -24-2 -5.39%

Hard Red Wheat May 20 436-2s -24-4 -5.32%

Hard Red Wheat Jul 20 446-2s -23-0 -4.90%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle   Aug 19 105.050s -3.000 -2.78%

Live Cattle   Oct 19 103.750s -3.000 -2.81%

Live Cattle   Dec 19 108.450s -3.000 -2.69%

 

Feeder Cattle   Aug 19 134.400s -4.500 -3.24%

Feeder Cattle   Sep 19 133.950s -4.500 -3.25%

Feeder Cattle   Oct 19 133.750s -4.500 -3.25%

 

Lean Hogs   Aug 19 79.175s +0.150 +0.19%

Lean Hogs   Oct 19 67.075s +0.100 +0.15%

Lean Hogs   Dec 19 63.775s -0.900 -1.39%

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