Canola futures lower, follows seasonal trend

WINNIPEG (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished lower on Tuesday, due to significantly weaker Chicago soyoil prices.

At the Chicago Board of Trade soyoil lost six-tenths of cent.

Also, a trader noted that canola prices have often retreated after making gains recently. He said this occurs quite often during mid-January.

The extradition hearing for Huawei executive Meng Wanzhou entered its second day. This highlights the strained relations between Canada and China which has seen canola exports to the latter severely curtailed following Meng’s arrest in December 2018.

By mid-afternoon Tuesday, the loonie fell back to 76.48 U.S. cents, compared to Monday’s close of 76.61.

There were 11,450 contracts traded on Tuesday, which compares with Monday when 10,968 contracts changed hands. Spreading accounted for 6,708 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Mar 476.80 dn 4.20
May 485.60 dn 4.20
Jul 490.00 dn 4.10
Nov 493.30 dn 3.30

SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Tuesday, as trading resumed following Martin Luther King Jr. Day.

The United States Department of Agriculture (USDA) reported on Tuesday export inspections for the week ending Jan. 16 of nearly 1.20 million tonnes of soybeans. Total soybean exports so far in the 2019/20 marketing year have reached 24.17 million tonnes. That’s 4.52 million tonnes more than this time last year.

Doubts in the markets have continued to mount as to China being able to meet its targets as outlined in the Phase One trade agreement. Those doubts have also extended to U.S. farmers having the ability to meet the demands for soybeans and other crops.

AgRural reported the Brazil soybean harvest was almost at two per cent complete. This time last year the harvest was a little more than six per cent finished. AgRural lowered its estimate of Brazil’s soybean production by slightly less than one per cent to 123.9 million tonnes.

CORN futures were lower on Tuesday, catching some spillover from soybeans and on technical selling.

The USDA report corn export inspections of 345,860 tonnes. Year to date inspections amounted to 9.43 million tonnes.

The Canadian government announced on Tuesday it will introduce legislation to ratify the U.S.-Mexico-Canada Agreement (USMCA) on Jan. 29. The USMCA replaces NAFTA after 26 years and could boost Mexico’s corn imports from its two partners. Mexico and the U.S. already ratified the agreement.

WHEAT futures were higher on Tuesday with Chicago wheat making double-digit gains.

The USDA said wheat export inspections hit 435,130 tonnes for the week. That’s a drop of almost 125,850 tonnes from the previous week. For the current marketing year, inspections totaled 15.92 million tonnes and more than 13.5 per cent ahead of 2018/19.

Pakistan approved a wheat import quota of 300,000 tonnes.

Japan issued a tender for 108,926 tonnes of wheat, with nearly 82,700 tonnes to come from the U.S. and the rest from Canada.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 20 cents at US$58.34 per barrel.

In the afternoon, the Canadian dollar was trading around US76.53 cents, down from 76.61 cents the previous trading day. The U.S. dollar was C$1.3067.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 20 476.80s -4.20 -0.87%

Canola May 20 485.60s -4.20 -0.86%

Canola Jul 20 490.00s -4.10 -0.83%

Canola Nov 20 493.30s -3.30 -0.66%

Canola Jan 21 498.50s -3.10 -0.62%

 

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 20 916-0s -13-6 -1.48%

Soybean May 20 929-6s -13-2 -1.41%

Soybean Jul 20 943-4s -12-0 -1.26%

Soybean Aug 20 948-0s -11-2 -1.17%

Soybean Sep 20 947-4s -10-4 -1.10%

 

Soybean Meal Mar 20 299.1s -1.5 -0.50%

Soybean Meal May 20 303.8s -1.4 -0.46%

Soybean Meal Jul 20 308.5s -1.2 -0.39%

 

Soybean Oil Mar 20 32.75s -0.60 -1.80%

Soybean Oil May 20 33.09s -0.58 -1.72%

Soybean Oil Jul 20 33.45s -0.57 -1.68%

 

Corn Mar 20 387-4s -1-6 -0.45%

Corn May 20 393-4s -1-6 -0.44%

Corn Jul 20 399-2s -1-6 -0.44%

Corn Sep 20 398-6s -1-4 -0.37%

Corn Dec 20 401-4s -1-2 -0.31%

 

Oats Mar 20 314-6s +3-0 +0.96%

Oats May 20 309-0s +2-2 +0.73%

Oats Jul 20 301-2s +3-4 +1.18%

Oats Sep 20 282-2s +0-2 +0.09%

Oats Dec 20 272-6s +0-2 +0.09%

 

Wheat Mar 20 581-4s +11-0 +1.93%

Wheat May 20 581-0s +9-6 +1.71%

Wheat Jul 20 580-4s +10-0 +1.75%

Wheat Sep 20 585-4s +9-6 +1.69%

Wheat Dec 20 593-4s +9-6 +1.67%

 

Minneapolis

Spring Wheat Mar 20 562-2s +2-2 +0.40%

Spring Wheat May 20 570-6s +2-2 +0.40%

Spring Wheat Jul 20 577-0s +1-6 +0.30%

Spring Wheat Sep 20 584-6s +1-6 +0.30%

Spring Wheat Dec 20 595-4s +1-4 +0.25%

 

Kansas City

Hard Red Wheat Mar 20 500-0s +5-6 +1.16%

Hard Red Wheat May 20 507-2s +5-6 +1.15%

Hard Red Wheat Jul 20 514-4s +5-2 +1.03%

Hard Red Wheat Sep 20 522-2s +4-6 +0.92%

Hard Red Wheat Dec 20 532-6s +4-2 +0.80%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 20 126.375s +126.375 unch

Live Cattle Apr 20 127.225s +127.225 unch

Live Cattle Jun 20 119.175s +119.175 unch

 

Feeder Cattle Jan 20 145.075s +145.075 unch

Feeder Cattle Mar 20 144.675s +144.675 unch

Feeder Cattle Apr 20 147.550s +147.550 unch

 

Lean Hogs Feb 20 67.350s +67.350 unch

Lean Hogs Apr 20 73.825s +73.825 unch

Lean Hogs May 20 80.350s +80.350 unch

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