Canola futures hold fairly steady

WINNIPEG, (MarketsFarm) – The ICE Futures canola market traded to both sides of unchanged on Thursday, closing with small gains in most months.

Only the nearby March contract ended lower, as traders exited positions in the front month ahead of its expiry.

Global equity markets continued to move lower on Thursday in response to mounting fears over the COVID-19 coronavirus. Those fears also weighed on canola, but canola was already looking overdone to the downside and managed to find some support, according to a broker.

A steady tone in Chicago Board of Trade soybeans and weakness in the Canadian dollar also underpinned the canola market.

However, aside from some bargain-hunting, most end-users appeared content to keep to the sidelines for the time being and for the selloff in the equities to run its course.

About 30,112 canola contracts traded on Thursday, which compares with Wednesday when 34,689 contracts changed hands. Spreading accounted for 21,480 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade posted small gains on Thursday, as strength in soymeal provided spillover support.

Expectations that Argentina will increase export tariffs on soymeal accounted for some of the strength in that market, as the South American country is a major meal exporter.

However, the COVID-19 coronavirus fears roiling the global equity markets kept some caution in soybeans, limiting the advances.

Losses in crude oil and vegetable oil markets, including soyoil, also kept a lid on the upside.

Disappointing weekly United States soybean export sales of about 340,000 tonnes came in well below trade guesses.

CORN futures ended lower, finding themselves caught up in the world wide virus fears. A near limit down move in cattle futures, and likelihood of reduced demand for feed grain, put some spillover pressure on the market and corn futures set fresh contract lows in the process.

Weekly U.S. corn export sales came in at about 860,000 tonnes, which was down by about 30 per cent from the previous week.

WHEAT futures were lower across the board, also pressured by the broad worldwide concerns over the COVID-19 coronavirus outbreak.

Weekly U.S. wheat export sales of around 380,000 tonnes were up from the previous week, but still below trade expectations.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.64 at US$47.09 per barrel.

In the afternoon, the Canadian dollar was trading around US74.84 cents, down from 75.15 cents the previous trading day. The U.S. dollar was C$1.3361.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 20 446.50s -1.80 -0.40%

Canola May 20 456.60s +0.20 +0.04%

Canola Jul 20 464.30s +0.40 +0.09%

Canola Nov 20 475.50s +1.10 +0.23%

Canola Jan 21 482.20s +0.90 +0.19%

 

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 20 886-2s +5-2 +0.60%

Soybean May 20 895-0s +3-0 +0.34%

Soybean Jul 20 904-6s +2-0 +0.22%

Soybean Aug 20 908-2s +1-2 +0.14%

Soybean Sep 20 908-4s +0-6 +0.08%

 

Soybean Meal Mar 20 296.9s +5.6 +1.92%

Soybean Meal May 20 303.6s +5.3 +1.78%

Soybean Meal Jul 20 307.9s +4.1 +1.35%

 

Soybean Oil Mar 20 28.83s -0.24 -0.83%

Soybean Oil May 20 29.19s -0.26 -0.88%

Soybean Oil Jul 20 29.56s -0.27 -0.91%

 

Corn Mar 20 364-4s -6-0 -1.62%

Corn May 20 368-0s -6-4 -1.74%

Corn Jul 20 372-4s -6-2 -1.65%

Corn Sep 20 372-6s -5-0 -1.32%

Corn Dec 20 377-4s -4-0 -1.05%

 

Oats Mar 20 273-4s -5-2 -1.88%

Oats May 20 279-6s -6-0 -2.10%

Oats Jul 20 279-2s -5-0 -1.76%

Oats Sep 20 268-4s -1-2 -0.46%

Oats Dec 20 265-0s +0-2 +0.09%

 

Wheat Mar 20 529-2s -11-0 -2.04%

Wheat May 20 527-4s -8-2 -1.54%

Wheat Jul 20 529-0s -6-4 -1.21%

Wheat Sep 20 536-0s -5-6 -1.06%

Wheat Dec 20 546-2s -5-4 -1.00%

 

Minneapolis

Spring Wheat Mar 20 507-6s -7-4 -1.46%

Spring Wheat May 20 524-0s -6-0 -1.13%

Spring Wheat Jul 20 533-4s -6-2 -1.16%

Spring Wheat Sep 20 543-0s -6-2 -1.14%

Spring Wheat Dec 20 556-4s -6-6 -1.20%

 

Kansas City

Hard Red Wheat Mar 20 443-2s -9-0 -1.99%

Hard Red Wheat May 20 451-6s -7-4 -1.63%

Hard Red Wheat Jul 20 458-6s -7-4 -1.61%

Hard Red Wheat Sep 20 468-0s -7-2 -1.53%

Hard Red Wheat Dec 20 481-0s -7-0 -1.43%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 20 112.625s -1.450 -1.27%

Live Cattle Apr 20 110.475s -1.875 -1.67%

Live Cattle Jun 20 103.925s -1.100 -1.05%

 

Feeder Cattle Mar 20 132.575s -1.500 -1.12%

Feeder Cattle Apr 20 134.075s -1.900 -1.40%

Feeder Cattle May 20 135.550s -1.325 -0.97%

 

Lean Hogs Apr 20 62.550s -2.600 -3.99%

Lean Hogs May 20 69.750s -2.425 -3.36%

Lean Hogs Jun 20 78.050s -2.350 -2.92%

 

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