Canola futures gains drop back in wake of uncertainty

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished in the red on Wednesday, erasing modest gains made earlier in the week.

Significant uncertainty posed by the COVID-19 coronavirus and its subsequent impact on global markets has sidelined many market participants. Spreading has been lighter than usual due to weaker buying activity.

The Canadian dollar remains around 72 U.S. cents, which is the lowest point in several years.

However, a weaker tone for the Chicago soy complex weighed on canola prices.

On Thursday, 20,881 contracts were traded, which compares with Wednesday when 25,698 contracts changed hands. Spreading accounted for 10,776 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) finished lower on Wednesday, pressured by low demand.

Last week, according to the United States Department of Agriculture (USDA), soybean export sales totalled just over 302,000 tonnes. That was 12 per cent lower than the previous week and 34 per cent lower than the prior four-week average. It’s also a new low for the 2019/2020 marketing year.

China has canceled over 90,000 tonnes of soybean sales.

Soybean cake and meal sales totaled almost 172,000 tonnes, which was 42 per cent lower than the previous week and 22 per cent behind the four-week average. Soy oil sales totalled just under 25,000 tonnes, which was in line with trade expectations.

CORN futures were weaker on Thursday, despite positive export sales data.

Last week, export sales totalled 1.47 million tonnes, which was an increase of 91 per cent from the prior week. It’s also a 12-week high. Market participants were expecting corn exports to be between 600,000 and 800,000 tonnes.

WHEAT futures were lower on Wednesday.

Wheat export sales totaled 452,000 tonnes last week. That’s down by 17 per cent from the previous week and 6 per cent lower than the prior four week average.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.48 at US$31.50 per barrel.

In the afternoon, the Canadian dollar was trading around US72.36 cents, down from 72.75 cents the previous trading day. The U.S. dollar was C$1.3820.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 20 451.60s -8.50 -1.85%

Canola May 20 451.00s -9.10 -1.98%

Canola Jul 20 459.30s -8.90 -1.90%

Canola Nov 20 468.60s -9.30 -1.95%

Canola Jan 21 475.30s -9.20 -1.90%

 

Soybean Mar 20 855-0s -12-6 -1.47%

Soybean May 20 859-4s -13-6 -1.57%

Soybean Jul 20 865-6s -14-6 -1.68%

Soybean Aug 20 868-2s -14-2 -1.61%

Soybean Sep 20 869-0s -13-6 -1.56%

 

Soybean Meal Mar 20 298.6s +2.7 +0.91%

Soybean Meal May 20 302.8s +1.2 +0.40%

Soybean Meal Jul 20 304.2s -1.1 -0.36%

 

Soybean Oil Mar 20 26.15s -1.15 -4.21%

Soybean Oil May 20 26.38s -1.15 -4.18%

Soybean Oil Jul 20 26.74s -1.14 -4.09%

 

Corn Mar 20 369-6s -9-4 -2.50%

Corn May 20 365-6s -8-6 -2.34%

Corn Jul 20 368-6s -7-6 -2.06%

Corn Sep 20 367-4s -6-0 -1.61%

Corn Dec 20 371-6s -5-2 -1.39%

 

Oats Mar 20 268-4s +0-4 +0.19%

Oats May 20 275-0s +0-4 +0.18%

Oats Jul 20 275-2s +1-4 +0.55%

Oats Sep 20 266-0s +1-0 +0.38%

Oats Dec 20 264-6s +0-4 +0.19%

 

Wheat Mar 20 508-2s -9-0 -1.74%

Wheat May 20 505-4s -7-2 -1.41%

Wheat Jul 20 506-6s -6-4 -1.27%

Wheat Sep 20 513-4s -6-4 -1.25%

Wheat Dec 20 525-2s -6-4 -1.22%

 

Spring Wheat Mar 20 499-2s unch unch

Spring Wheat May 20 509-0s -3-0 -0.59%

Spring Wheat Jul 20 520-2s -2-4 -0.48%

Spring Wheat Sep 20 530-6s -1-6 -0.33%

Spring Wheat Dec 20 545-2s -1-4 -0.27%

 

Hard Red Wheat Mar 20 431-2s -2-6 -0.63%

Hard Red Wheat May 20 432-6s -2-6 -0.63%

Hard Red Wheat Jul 20 439-6s -3-0 -0.68%

Hard Red Wheat Sep 20 449-0s -3-0 -0.66%

Hard Red Wheat Dec 20 462-2s -3-2 -0.70%

 

Live Cattle Apr 20 100.075s -3.000 -2.91%

Live Cattle Jun 20 94.250s -3.000 -3.08%

Live Cattle Aug 20 93.675s -3.000 -3.10%

 

Feeder Cattle Mar 20 118.825s -4.500 -3.65%

Feeder Cattle Apr 20 119.025s -4.500 -3.64%

Feeder Cattle May 20 120.750s -4.500 -3.59%

 

Lean Hogs Apr 20 60.875s -3.000 -4.70%

Lean Hogs May 20 67.200s -3.000 -4.27%

Lean Hogs Jun 20 75.800s -3.000 -3.81%

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