Canola futures hit new contract lows

WINNIPEG, (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, seeing some follow-through speculative selling after Monday’s sharp declines.

The market dropped to fresh contract lows in the process, although bargain hunting helped temper the declines.

Losses in Malaysian palm oil and Chicago Board of Trade soyoil futures contributed the weaker tone in canola, although CBOT soybeans were firmer on the day and the Canadian dollar held steady.

Ongoing concerns over the COVID-19 coronavirus outbreak remained a feature in the grain and oilseed markets. Blockades at railways and port facilities across Canada, in solidarity with anti-pipeline protestors in British Columbia, also kept some caution in the canola market.

ADVERTISEMENT

About 38,468 canola contracts traded on Tuesday, which compares with Monday when 31,941 contracts changed hands. Spreading accounted for 32,952 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade posted small gains on Tuesday, seeing a modest recovery after Monday’s sharp coronavirus-related losses.

Reports of dryness hurting soybean crops in Argentina were also supportive. However, the advancing Brazilian harvest kept some pressure on the market.

Declines in Malaysian palm oil also weighed on soyoil, and tempered the upside in soybeans.

Political uncertainty in Malaysia contributed to the weakness in palm oil, as the country’s prime minister abruptly resigned on Monday.

CORN futures settled near unchanged, seeing some consolidation after yesterday’s declines.

Recent price weakness brought in some bargain hunting from end users, with a number of South Korean buyers reportedly in the market for corn from the United States.

WHEAT futures traded to both sides of unchanged, but managed to settle with small gains in the most active months as traders adjusted positions ahead of the month-end.

Fears over the COVID-19 coronavirus remained a feature in the background of the wheat market.

Locust swarms in Africa and into southwest Asia were also being followed by wheat traders.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.53 at US$49.90 per barrel.

In the afternoon, the Canadian dollar was trading around US75.30 cents, down from 75.31 cents the previous trading day. The U.S. dollar was C$1.3281.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 20 447.80s -1.90 -0.42%

Canola May 20 456.30s -2.50 -0.54%

Canola Jul 20 463.30s -2.60 -0.56%

Canola Nov 20 473.70s -1.80 -0.38%

Canola Jan 21 480.50s -1.60 -0.33%

 

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 20 879-0s +4-6 +0.54%

Soybean May 20 888-2s +5-6 +0.65%

Soybean Jul 20 899-6s +5-6 +0.64%

Soybean Aug 20 903-6s +5-6 +0.64%

Soybean Sep 20 905-0s +5-2 +0.58%

 

Soybean Meal Mar 20 286.5s +0.4 +0.14%

Soybean Meal May 20 293.0s +1.0 +0.34%

Soybean Meal Jul 20 299.3s +1.4 +0.47%

 

Soybean Oil Mar 20 29.23s -0.26 -0.88%

Soybean Oil May 20 29.62s -0.25 -0.84%

Soybean Oil Jul 20 30.01s -0.25 -0.83%

 

Corn Mar 20 372-4s +0-2 +0.07%

Corn May 20 376-4s +0-2 +0.07%

Corn Jul 20 380-0s +0-4 +0.13%

Corn Sep 20 378-0s +0-2 +0.07%

Corn Dec 20 382-2s unch unch

 

Oats Mar 20 285-0s -1-0 -0.35%

Oats May 20 291-6s +2-0 +0.69%

Oats Jul 20 289-0s +3-2 +1.14%

Oats Sep 20 273-2s +3-4 +1.30%

Oats Dec 20 267-6s +3-6 +1.42%

 

Wheat Mar 20 539-0s +2-6 +0.51%

Wheat May 20 537-0s +2-2 +0.42%

Wheat Jul 20 537-2s +0-4 +0.09%

Wheat Sep 20 543-2s -0-2 -0.05%

Wheat Dec 20 553-0s -1-2 -0.23%

 

Minneapolis

Spring Wheat Mar 20 516-0s +2-0 +0.39%

Spring Wheat May 20 529-6s +2-0 +0.38%

Spring Wheat Jul 20 539-2s +2-0 +0.37%

Spring Wheat Sep 20 548-6s +2-0 +0.37%

Spring Wheat Dec 20 562-4s +2-2 +0.40%

 

Kansas City

Hard Red Wheat Mar 20 455-0s +2-6 +0.61%

Hard Red Wheat May 20 462-0s +2-6 +0.60%

Hard Red Wheat Jul 20 468-6s +2-2 +0.48%

Hard Red Wheat Sep 20 477-2s +2-2 +0.47%

Hard Red Wheat Dec 20 490-0s +3-0 +0.62%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 20 115.025s -1.975 -1.69%

Live Cattle Apr 20 112.950s -2.300 -2.00%

Live Cattle Jun 20 105.800s -1.575 -1.47%

 

Feeder Cattle Mar 20 132.975s -3.050 -2.24%

Feeder Cattle Apr 20 134.125s -3.475 -2.53%

Feeder Cattle May 20 135.800s -2.550 -1.84%

 

Lean Hogs Apr 20 64.675s +0.050 +0.08%

Lean Hogs May 20 71.975s +0.100 +0.14%

Lean Hogs Jun 20 79.700s -0.250 -0.31%

 

About the author

Phil Franz-Warkentin - MarketsFarm's recent articles

Markets at a glance

explore

Stories from our other publications