Canola futures weaken; wheat up with export demand

Winnipeg, (MarketsFarm) – ICE Futures canola contracts were slightly weaker at Tuesday’s close, after trading to both sides of unchanged in choppy activity.

Losses in Chicago Board of Trade soyoil and a firm tone in the Canadian dollar caused crush margins to fall, which kept domestic processors on the sidelines, according to a trader.

A lack of significant fund activity also weighed on prices, with only light amounts of positioning by small speculators said to be providing support.

Ample supplies in the commercial pipeline also weighed on values.

CBOT soybean futures held near unchanged at the close, but had posted large losses on Monday when the canola market was closed for Remembrance Day.

About 14,768 canola contracts traded on Tuesday, which compares with Friday when 20,680 contracts changed hands. Spreading accounted for 10,098 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade held within a narrow range on Tuesday, lacking any clear direction as the market consolidated after Monday’s losses. Soymeal was up on the day while soyoil was lower, with adjustments to the product spreads a feature of the activity.

The United States soybean harvest is estimated to be about 85 to 90 per cent complete ahead of the U.S. Department of Agriculture’s latest crop report out later in the afternoon.

Unseasonably cold temperatures across the Midwest could cause damage for the crops still standing, although any weather related strength was being countered by the relatively favourable South American conditions for seeding in Brazil.

Uncertainty over Chinese demand kept some caution in the bean market, as traders look for any fresh developments in the ongoing negotiations.

CORN was stronger, taking some direction from a rally in wheat.
Weekly US corn export inspections of just over half a million tonnes were nearly double what moved the previous week, but still behind the previous year’s data.

The U.S. corn harvest is thought to be about 65 to 70 per cent done.

WHEAT futures were up sharply on the back of solid export demand.

Weekly U.S. wheat export inspections of about 530,000 tonnes came in well above trade guesses that had topped out at 350,000. Total U.S. wheat exports during the marketing year to date are now running slightly ahead of the year ago level.

Continued harvest delays for the last ten per cent of Canada’s spring wheat crop were somewhat supportive.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down six cents at US$56.80 per barrel.

In the afternoon, the Canadian dollar was trading around US75.60 cents, down from 75.63 cents the previous trading day. The U.S. dollar was C$1.3228.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 19 456.10s -0.70 -0.15%

Canola Jan 20 462.10s -1.20 -0.26%

Canola Mar 20 471.60s -1.30 -0.27%

Canola May 20 480.40s -0.80 -0.17%

Canola Jul 20 487.90s -0.50 -0.10%

 

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 19 905-6s +0-6 +0.08%

Soybean Jan 20 917-0s unch unch

Soybean Mar 20 930-2s -0-2 -0.03%

Soybean May 20 942-6s unch unch

Soybean Jul 20 953-6s +0-2 +0.03%

 

Soybean Meal Dec 19 302.3s +1.7 +0.57%

Soybean Meal Jan 20 304.4s +1.7 +0.56%

Soybean Meal Mar 20 307.6s +1.9 +0.62%

 

Soybean Oil Dec 19 31.03s -0.39 -1.24%

Soybean Oil Jan 20 31.23s -0.39 -1.23%

Soybean Oil Mar 20 31.51s -0.38 -1.19%

 

Corn Dec 19 377-6s +4-4 +1.21%

Corn Mar 20 386-4s +4-4 +1.18%

Corn May 20 392-6s +4-0 +1.03%

Corn Jul 20 398-6s +3-6 +0.95%

Corn Sep 20 395-2s +2-4 +0.64%

 

Oats Dec 19 307-6s -4-4 -1.44%

Oats Mar 20 304-2s -3-6 -1.22%

Oats May 20 303-2s -3-4 -1.14%

Oats Jul 20 300-4s -0-6 -0.25%

Oats Sep 20 290-2s -1-2 -0.43%

 

Wheat Dec 19 517-0s +11-2 +2.22%

Wheat Mar 20 521-6s +11-2 +2.20%

Wheat May 20 526-4s +11-0 +2.13%

Wheat Jul 20 530-2s +10-4 +2.02%

Wheat Sep 20 537-2s +9-6 +1.85%

 

Minneapolis

Spring Wheat Dec 19 521-6s +6-4 +1.26%

Spring Wheat Mar 20 537-0s +5-6 +1.08%

Spring Wheat May 20 546-4s +5-2 +0.97%

Spring Wheat Jul 20 556-0s +5-2 +0.95%

Spring Wheat Sep 20 564-2s +4-6 +0.85%

 

Kansas City

Hard Red Wheat Dec 19 438-6s +16-0 +3.78%

Hard Red Wheat Mar 20 445-4s +15-4 +3.60%

Hard Red Wheat May 20 451-6s +15-0 +3.43%

Hard Red Wheat Jul 20 458-0s +15-0 +3.39%

Hard Red Wheat Sep 20 466-2s +14-4 +3.21%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 19 119.750s -0.125 -0.10%

Live Cattle Feb 20 125.575s -0.100 -0.08%

Live Cattle Apr 20 127.050s +0.100 +0.08%

 

Feeder Cattle Nov 19 147.800s +0.225 +0.15%

Feeder Cattle Jan 20 147.125s unch unch

Feeder Cattle Mar 20 146.825s +0.125 +0.09%

 

Lean Hogs Dec 19 64.725s +1.425 +2.25%

Lean Hogs Feb 20 75.550s +1.825 +2.48%

Lean Hogs Apr 20 82.025s +1.375 +1.70%

 

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