Canola futures remain in range

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished lower on Thursday, retreating from previous highs due to lack of follow-through buying. One trader noted that markets were range-bound, lacking a strong sense of direction.

The announcement that China will resume importing Canadian pork and beef sparked some optimism regarding a trade deal for canola between the two countries. It doesn’t appear that China will start buying canola again any time soon, but canola export demand has remained consistent despite a lack of buying from China. Crush margins have more than doubled over the past year.

The Canadian dollar dipped hovered around 75.8 U.S. cents on Thursday afternoon, providing some support to canola values.
Some experts are anticipating soybean production to be revised slightly downward in tomorrow’s World Agriculture Supply Demand Estimates (WASDE) from the United States Department of Agriculture (USDA).

On Thursday, 13,784 contracts were traded, which compares with Wednesday when 20,542 contracts changed hands. Spreading accounted for 6,574 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Thursday due to strong export demand. This morning, the United States Department of Agriculture (USDA) reported a private export sale to the Philippines totaling 133,000 tonnes.

Last week, net soybean sales totalled 1.8 million metric tonnes, which was a 92 per cent increase from the previous week and 42 per cent higher than the four-week average. About 52 per cent of all soybeans shipped were destined to China.

Soybean cake and meal sales were around 262,000 tonnes, purchased primarily by the Philippines, Colombia and Mexico. Soybean oil sales totaled about 4,000 tonnes, which was less than trade expectations.

CORN futures were lower today, though last week’s export sales were in line with trade expectations.

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Approximately 488,000 tonnes of corn were sold last week, which is down 11 per cent from the previous week, but up by 15 per cent from the four-week average. Purchases were made by the Philippines, Thailand, and other unknown destinations.

WHEAT futures were lower on Thursday. Net sales totaled 360,000 tonnes last week, which is down by 27 per cent from the week prior.

A recent report from the USDA showed transportation costs for shipping wheat from the Midwest to Japan increased during the third quarter of 2019, mainly due to higher freight and ocean rates. Shipping costs from Kansas and North Dakota in particular increase by four per cent year-over-year.

Russia has reduced their wheat production forecast by 5 million tonnes based on early harvest results. However, the country’s overall grain production for 2019 is expected to be higher than last year.

 

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 80 cents at US$57.15 per barrel.

In the afternoon, the Canadian dollar was trading around US75.90 cents, up from 75.88 cents the previous trading day. The U.S. dollar was C$1.3176.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 19 454.70s +1.90 +0.42%

Canola Jan 20 461.20s -1.20 -0.26%

Canola Mar 20 470.50s -1.20 -0.25%

Canola May 20 479.20s -1.30 -0.27%

Canola Jul 20 486.60s -1.30 -0.27%

 

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 Nov 19 925-0s +10-0 +1.09%

Soybean Jan 20 936-4s +9-0 +0.97%

Soybean Mar 20 948-6s +8-0 +0.85%

Soybean May 20 960-2s +7-4 +0.79%

Soybean Jul 20 970-6s +7-4 +0.78%

 

Soybean Meal Dec 19 305.6s +6.7 +2.24%

Soybean Meal Jan 20 307.8s +6.5 +2.16%

Soybean Meal Mar 20 311.0s +6.1 +2.00%

 

Soybean Oil Dec 19 31.43s -0.32 -1.01%

Soybean Oil Jan 20 31.65s -0.31 -0.97%

Soybean Oil Mar 20 31.91s -0.31 -0.96%

 

Corn Dec 19 375-2s -3-4 -0.92%

Corn Mar 20 383-6s -4-0 -1.03%

Corn May 20 391-0s -3-6 -0.95%

Corn Jul 20 397-6s -3-0 -0.75%

Corn Sep 20 394-6s -2-0 -0.50%

 

Oats Dec 19 305-2s -1-6 -0.57%

Oats Mar 20 299-6s -1-6 -0.58%

Oats May 20 299-4s -1-6 -0.58%

Oats Jul 20 297-2s -1-4 -0.50%

Oats Sep 20 288-0s -1-0 -0.35%

 

Wheat Dec 19 512-4s -4-2 -0.82%

Wheat Mar 20 517-2s -4-2 -0.81%

Wheat May 20 522-2s -3-4 -0.67%

Wheat Jul 20 526-4s -3-4 -0.66%

Wheat Sep 20 533-2s -3-2 -0.61%

 

Minneapolis

Spring Wheat Dec 19 518-6s -4-4 -0.86%

Spring Wheat Mar 20 535-2s -3-6 -0.70%

Spring Wheat May 20 545-6s -3-6 -0.68%

Spring Wheat Jul 20 554-4s -3-6 -0.67%

Spring Wheat Sep 20 562-6s -3-4 -0.62%

 

Kansas City

Hard Red Wheat Dec 19 424-6s -3-0 -0.70%

Hard Red Wheat Mar 20 433-4s -4-2 -0.97%

Hard Red Wheat May 20 440-6s -5-0 -1.12%

Hard Red Wheat Jul 20 447-6s -5-4 -1.21%

Hard Red Wheat Sep 20 456-2s -5-6 -1.24%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 19 119.000s unch unch

Live Cattle Feb 20 124.850s +0.150 +0.12%

Live Cattle Apr 20 125.850s +0.300 +0.24%

 

Feeder Cattle Nov 19 146.775s -0.025 -0.02%

Feeder Cattle Jan 20 145.775s +1.350 +0.93%

Feeder Cattle Mar 20 145.500s +1.525 +1.06%

 

Lean Hogs Dec 19 64.300s -0.475 -0.73%

Lean Hogs Feb 20 73.775s +1.000 +1.37%

Lean Hogs Apr 20 80.150s +0.775 +0.98%

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