Canola futures gain following soyoil

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were steady to higher on Wednesday, due to gains in Chicago soyoil and Malaysian palm oil. However, lower European rapeseed weighed on values.

Despite the Bank of Canada cutting its key interest rate by a half-point today, an analyst said the cut itself wouldn’t have a direct effect on canola. Rather, if the cut were to keep the Canadian dollar under 75 U.S. cents, then that would be beneficial to canola.

By mid-afternoon Wednesday, the Canadian dollar was lower at 74.62 U.S. cents compared to Tuesday’s close of 74.83.

Canadian National Railway said the recent blockades by pipeline protestors delayed the shipment of 1 million tonnes of grains and oilseeds for export. That’s the equivalent of about 10,000 rail carloads. Those delays will likely hurt Canada’s reputation for timely export deliveries.

Estimates are CN will need several weeks to undo its backlog. Also, the railway has called back the 450 employees who were laid off during the blockades.

There were 31,527 contracts traded on Wednesday, which compares with Tuesday when 20,058 contracts changed hands. Spreading accounted for 22,140 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola May 466.90 up 0.30
Jul 475.00 up 1.00
Nov 483.90 up 1.10
Jan 490.30 up 1.00

SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Wednesday, as optimism towards possible purchases by China edged out fears over the COVID-19 coronavirus.

However, reports stated that China is continuing to buy soybeans from Brazil at this time, rather than from the United States. This is despite the Phase One trade agreement outlining that China is to purchase US$40 billion in U.S. agricultural goods this year.

IEG Vantage estimated global soybean production will rise to 372 million tonnes in 2020/21. That’s an increase of 8.1 per cent from 2019/20.
CORN futures were higher on Wednesday, for the same reasons as soybeans.

China purchased 110,000 tonnes of U.S. sorghum in a private sale announced today by the USDA.

China’s demand for corn for feed is expected to drop by 3 million tonnes in 2019/20 as the effects of COVID-19 has hampered the restocking of chickens.

The U.S. Energy Information Administration reported that ethanol production averaged 1.08 million barrels per day for the week ended Feb. 28. Average production for February was at 1.05 million BPD and total U.S. stocks were at 24.96 million barrels.

Dry weather has been forecast for next 10 days in the key corn growing areas of Brazil. Together with below normal rainfall, that could hurt the early growth of Brazil’s safrinha corn crop. The planting of the country’s second corn crop reached 72 per cent complete, according to a report.

WHEAT futures were lower on Wednesday, as U.S. wheat isn’t competitive on the global market.

There has been speculation that China is interested in purchasing large quantities of U.S. wheat. However, no sales have been announced.

In international purchases, Japan issued a tender for almost 117,400 tonnes of food wheat, Tunisia issued a tender for 117,000 tonnes of soft wheat, and Ethiopia is looking to buy 400,000 tonnes of wheat. Also, wheat exports from Ukraine plummeted 82.1 per cent for the week ended Feb. 28 compared to the previous week.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 40 cents at US$46.78 per barrel.

In the afternoon, the Canadian dollar was trading around US74.67 cents, down from 74.83 cents the previous trading day. The U.S. dollar was C$1.3392.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 20 471.90s +8.10 +1.75%

Canola May 20 466.90s +0.30 +0.06%

Canola Jul 20 475.00s +1.00 +0.21%

Canola Nov 20 483.90s +1.10 +0.23%

Canola Jan 21 490.30s +1.00 +0.20%

 

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 20 898-6s +5-6 +0.64%

Soybean May 20 907-2s +3-6 +0.42%

Soybean Jul 20 915-2s +1-6 +0.19%

Soybean Aug 20 916-4s +0-4 +0.05%

Soybean Sep 20 915-0s -0-4 -0.05%

 

Soybean Meal Mar 20 305.2s +1.4 +0.46%

Soybean Meal May 20 308.9s -1.2 -0.39%

Soybean Meal Jul 20 312.8s -1.3 -0.41%

 

Soybean Oil Mar 20 29.44s +0.60 +2.08%

Soybean Oil May 20 29.74s +0.58 +1.99%

Soybean Oil Jul 20 30.05s +0.55 +1.86%

 

Corn Mar 20 387-0s +5-2 +1.38%

Corn May 20 385-0s +3-6 +0.98%

Corn Jul 20 386-2s +2-4 +0.65%

Corn Sep 20 382-0s +1-2 +0.33%

Corn Dec 20 385-4s +1-0 +0.26%

 

Oats Mar 20 264-2s +6-2 +2.42%

Oats May 20 270-6s +6-2 +2.36%

Oats Jul 20 271-2s +4-6 +1.78%

Oats Sep 20 263-6s +3-6 +1.44%

Oats Dec 20 262-6s +3-2 +1.25%

 

Wheat Mar 20 521-4s -7-2 -1.37%

Wheat May 20 518-2s -9-0 -1.71%

Wheat Jul 20 519-4s -8-0 -1.52%

Wheat Sep 20 526-4s -7-2 -1.36%

Wheat Dec 20 538-0s -6-4 -1.19%

 

Minneapolis

Spring Wheat Mar 20 516-0s -3-6 -0.72%

Spring Wheat May 20 529-2s -4-6 -0.89%

Spring Wheat Jul 20 538-6s -4-4 -0.83%

Spring Wheat Sep 20 548-0s -4-4 -0.81%

Spring Wheat Dec 20 562-0s -4-2 -0.75%

 

Kansas City

Hard Red Wheat Mar 20 446-2s -5-6 -1.27%

Hard Red Wheat May 20 453-2s -5-0 -1.09%

Hard Red Wheat Jul 20 460-0s -5-0 -1.08%

Hard Red Wheat Sep 20 469-0s -4-4 -0.95%

Hard Red Wheat Dec 20 482-2s -4-2 -0.87%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 20 111.275s +1.175 +1.07%

Live Cattle Jun 20 104.525s +1.150 +1.11%

Live Cattle Aug 20 104.550s +1.000 +0.97%

 

Feeder Cattle Mar 20 134.850s +1.325 +0.99%

Feeder Cattle Apr 20 135.550s +1.775 +1.33%

Feeder Cattle May 20 136.425s +2.375 +1.77%

 

Lean Hogs Apr 20 64.300s +0.750 +1.18%

Lean Hogs May 20 70.600s +0.975 +1.40%

Lean Hogs Jun 20 78.825s +0.750 +0.96%

 

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