Canola futures much weaker

WINNIPEG – ICE Futures canola contracts finished much weaker on Monday hitting new contract lows, as trading resumed following the Easter long-weekend.

The May contract lost C$6 to close at C$443.10 per tonne on Monday. The July contract fell C$5.80 to finish at C$451.40 per tonne.

A Winnipeg-based trader said the commodity fund roll is pretty much complete for May-July, and spec funds have been exiting their May contracts as well.

StatsCanada will release its 2019/20 Principal Field Crop Acreage report on Wednesday. It’s widely expected canola acres will be down in 2019. Market estimates range from 19.5 million to 22.4 million acres. Last year, Canadian farmers planted 22.8 million acres of canola.

The effects of China’s ban on Canadian canola are being felt, as for the week ending April 14, less than 151,000 tonnes of canola were exported. Overall canola exports are 600,000 tonnes behind pace. Agriculture and Agri-Food Canada has projected a record for ending stocks of canola at 3.5 million tonnes.

The Canadian dollar was a little below 75 U.S. cents by midafternoon on Monday.

There were 32,640 contracts traded on Monday, which compares with Thursday when 34,866 contracts changed hands.

SOYBEAN futures at the Chicago Board of Trade were weaker on Monday due to expectations of more acres being planted by farmers in the United States this year.

Rain is expected for the Upper Midwest this week and will slow planting. At this time U.S. farmers are estimated to have no more than two per cent of their oilseed crops planted.

Weekly export inspections were poor last week, totaling 382,000 tonnes.

U.S./China trade talks will resume this week. Any positive news, backed up by solid numbers, could push bids upward. However, African swine fever has sharply reduced China’s demand for soybeans and oilseeds.

The Rosario Grain Exchange upped its projection of Argentina’s soybean crop to 56 million tonnes. The United States Department of Agriculture estimated Argentina soybean production at 55 million tonnes. Both estimates are a vast improvement of the 37.8 million tonnes Argentina produced in 2018.

CORN futures were weaker on Monday, as funds are said to be holding a seriously short position, about 320,000 contracts, according to a report.

U.S. corn export inspections did well last week, at 1.3 million tonnes.

Planting in the U.S. has reached approximately seven per cent.

WHEAT futures were weaker on Monday as large global supplies helped to push prices down.

U.S. wheat export inspections came to 811,000 tonnes last week, a good number for otherwise troubled exports in a very competitive global market.

MarketsFarm analyst Bruce Burnett has projected Russia’s 2019 wheat crop at 81.5 million tonnes, a jump of 10 million tonnes. A private French forecaster pegged Russia’s wheat crop at 78.5 million tonnes this year.

The World Trade Organization ruled in favour of the U.S. on China’s application of tariff-rate quotas for wheat, corn and rice. The April 18 ruling stated China failed to apply the quotas “in a transparent, predictable and fair basis” in 2015.

OUTSIDE MARKETS

Light crude oil nearby futures in New York US$74.93 per barrel.

In the afternoon, the Canadian dollar was trading around US74.93 cents. The U.S. dollar was C$1.3346

 

Winnipeg ICE Futures Canada dollars per tonne.

Name / Contract Last Change % Change

Canola May 19 443.10s -6.00 -1.34%

Canola Jul 19 451.40s -5.80 -1.27%

Canola Nov 19 463.30s -5.50 -1.17%

Canola Jan 20 470.10s -5.30 -1.11%

Canola Mar 20 475.80s -5.20 -1.08%

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 May 19 877-0s -3-4 -0.40%

Soybean Jul 19 890-6s -3-4 -0.39%

Soybean Aug 19 896-2s -3-6 -0.42%

Soybean Sep 19 900-6s -4-0 -0.44%

Soybean Nov 19 909-6s -3-6 -0.41%

 

Soybean Meal May 19 302.5s -0.7 -0.23%

Soybean Meal Jul 19 306.0s -0.8 -0.26%

Soybean Meal Aug 19 307.1s -0.9 -0.29%

 

Soybean Oil May 19 28.70s -0.10 -0.35%

Soybean Oil Jul 19 29.00s -0.09 -0.31%

Soybean Oil Aug 19 29.15s -0.09 -0.31%

 

Corn May 19 354-6s -3-6 -1.05%

Corn Jul 19 363-4s -3-6 -1.02%

Corn Sep 19 371-0s -4-0 -1.07%

Corn Dec 19 382-4s -3-6 -0.97%

Corn Mar 20 396-4s -3-6 -0.94%

 

Oats May 19 293-0s +1-0 +0.34%

Oats Jul 19 280-4s +2-2 +0.81%

Oats Sep 19 269-2s -0-2 -0.09%

Oats Dec 19 260-4s +1-2 +0.48%

Oats Mar 20 252-6s +1-4 +0.60%

 

Wheat May 19 435-6s -8-4 -1.91%

Wheat Jul 19 441-6s -6-4 -1.45%

Wheat Sep 19 448-6s -6-0 -1.32%

Wheat Dec 19 465-2s -5-6 -1.22%

Wheat Mar 20 482-4s -5-2 -1.08%

 

Minneapolis

Spring Wheat May 19 509-2s -14-0 -2.68%

Spring Wheat Jul 19 518-0s -11-4 -2.17%

Spring Wheat Sep 19 528-0s -8-6 -1.63%

Spring Wheat Dec 19 543-6s -8-2 -1.49%

Spring Wheat Mar 20 558-4s -7-4 -1.33%

 

Kansas City

Hard Red Wheat May 19 411-6s -8-2 -1.96%

Hard Red Wheat Jul 19 418-2s -7-4 -1.76%

Hard Red Wheat Sep 19 427-4s -7-2 -1.67%

Hard Red Wheat Dec 19 449-0s -7-0 -1.54%

Hard Red Wheat Mar 20 470-4s -6-2 -1.31%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle   Apr 19 128.500s -0.025 -0.02%

Live Cattle   Jun 19 121.575s -1.100 -0.90%

Live Cattle   Aug 19 118.775s -0.975 -0.81%

 

Feeder Cattle   May 19 150.800s -0.725 -0.48%

Feeder Cattle   Aug 19 159.625s -1.050 -0.65%

Feeder Cattle   Sep 19 160.775s -1.300 -0.80%

 

Lean Hogs   May 19 89.025s -1.175 -1.30%

Lean Hogs   Jun 19 93.775s -2.975 -3.07%

Lean Hogs   Jul 19 97.975s -2.575 -2.56%

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