WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished higher on Tuesday, recovering slightly after sharp losses incurred yesterday.
One trader noted that spreading activity indicated that there is a large amount of canola in the system, with the widening July/November suggesting that there will be high carryout from the 2019 growing season.
Rebounding soyoil on the Chicago Board of Trade provided some support to canola values, though one trader remarked that prices remained “heavy.”
Relative strength to the Canadian dollar also weighed on prices. At midday, the dollar was around 75.88 U.S. cents.
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On Tuesday, 39,790 contracts were traded, which compares with Monday when 35,462 contracts changed hands. Spreading accounted for 29,822 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Tuesday, continuing pricing trends set yesterday.
Malaysian palm oil prices are down by about 18 per cent from January highs, putting pressure on comparable vegetable oils.
Brazil’s soybean harvest is about 4 per cent complete, which is trailing behind the 13 per cent pace from this time last year. Market participants will be watching for signs of drought in key soybean-growing seasons during this harvest period, to see if the record-high crop is realized.
CORN futures finished higher today, boosted by steady export demand.
This morning, the United States Department of Agriculture (USDA) announced a private export sale of approximately 124,000 tonnes of corn, purchased by Mexico. That continues a steady string of daily sales announcements which started last week.
However, the future of ethanol demand in the U.S. remains uncertain. Last week, a court decision struck down three biofuel waivers that were granted to oil refineries by the Environmental Protection Agency (EPA). The court decision has sparked doubts regarding the legitimacy of other exemptions the EPA has granted.
Under the U.S. Renewable Fuel Standard, oil refineries must blend biofuels such as ethanol into fuel. However, waivers can be granted if compliance to this rule causes undue financial stress. The volume of waivers granted by the EPA has nearly quadrupled in recent years.
WHEAT futures were lower on Tuesday.
In India, wheat planting has totalled approximately 73.4 million acres, which is up from the 64.9 million acres planted last year. Early estimates for India’s wheat crop are around 109 million tonnes.
Unseasonably warm growing temperatures in western and central Europe have left winter wheat crops growing slower than normal, according to the European Union’s crop monitoring agency. Warmer temperatures have also prevented some cereal crops from developing tolerance for low temperatures, making crops in the region more vulnerable to frost.
Light crude oil nearby futures in New York was up 34 cents at US$53.48 per barrel.
In the afternoon, the Canadian dollar was trading around US75.88 cents, up from 75.86 cents the previous trading day. The U.S. dollar was C$1.3179.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 20 461.80s +0.30 +0.07%
Canola May 20 471.00s +0.40 +0.08%
Canola Jul 20 477.90s +1.00 +0.21%
Canola Nov 20 486.60s +2.30 +0.47%
Canola Jan 21 492.50s +2.20 +0.45%
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 20 895-0s -2-2 -0.25%
Soybean May 20 909-0s -2-0 -0.22%
Soybean Jul 20 922-2s -2-2 -0.24%
Soybean Aug 20 927-0s -2-2 -0.24%
Soybean Sep 20 926-4s -2-6 -0.30%
Soybean Meal Mar 20 297.6s -0.2 -0.07%
Soybean Meal May 20 301.9s -0.4 -0.13%
Soybean Meal Jul 20 306.2s -0.3 -0.10%
Soybean Oil Mar 20 31.46s -0.06 -0.19%
Soybean Oil May 20 31.83s -0.05 -0.16%
Soybean Oil Jul 20 32.21s -0.04 -0.12%
Corn Mar 20 386-4s +6-0 +1.58%
Corn May 20 392-0s +5-2 +1.36%
Corn Jul 20 397-2s +5-0 +1.27%
Corn Sep 20 394-4s +2-6 +0.70%
Corn Dec 20 397-4s +2-2 +0.57%
Oats Mar 20 307-0s +6-4 +2.16%
Oats May 20 301-6s +6-4 +2.20%
Oats Jul 20 292-4s +6-0 +2.09%
Oats Sep 20 275-2s +7-2 +2.71%
Oats Dec 20 270-6s +3-6 +1.40%
Wheat Mar 20 569-6s -2-4 -0.44%
Wheat May 20 568-4s -2-6 -0.48%
Wheat Jul 20 567-2s -3-4 -0.61%
Wheat Sep 20 573-0s -3-4 -0.61%
Wheat Dec 20 581-2s -3-4 -0.60%
Minneapolis
Spring Wheat Mar 20 542-2s -5-0 -0.91%
Spring Wheat May 20 551-4s -5-2 -0.94%
Spring Wheat Jul 20 559-6s -4-4 -0.80%
Spring Wheat Sep 20 568-6s -4-4 -0.78%
Spring Wheat Dec 20 579-6s -4-2 -0.73%
Kansas City
Hard Red Wheat Mar 20 482-0s -4-4 -0.92%
Hard Red Wheat May 20 489-2s -5-0 -1.01%
Hard Red Wheat Jul 20 496-6s -4-6 -0.95%
Hard Red Wheat Sep 20 504-6s -4-2 -0.83%
Hard Red Wheat Dec 20 515-2s -4-2 -0.82%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 20 122.150s -0.100 -0.08%
Live Cattle Apr 20 120.700s -0.600 -0.49%
Live Cattle Jun 20 112.475s -0.550 -0.49%
Feeder Cattle Jan 20 142.050s +0.150 +0.11%
Feeder Cattle Mar 20 135.400s +0.225 +0.17%
Feeder Cattle Apr 20 137.775s -0.225 -0.16%
Lean Hogs Feb 20 66.225s +0.275 +0.42%
Lean Hogs Apr 20 71.300s +0.850 +1.21%
Lean Hogs May 20 77.650s +0.675 +0.88%
