Canola futures well supported: trader

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished mostly higher on Wednesday, carrying on with pricing trends set earlier in the week.

One Winnipeg-based trader said prices are well-supported, and have the potential to go higher. Some producers have opted to slow down on selling in anticipation of higher prices.

A weaker Canadian dollar was supportive of canola prices. At midday, the dollar was at 76.7 U.S. cents, retreating from last week’s highs of over 77 U.S. cents.

Market participants have showed some caution given escalating geopolitical turmoil in the Middle East.

On Wednesday, 26,735 contracts were traded, which compares with Tuesday when 19,204 contracts changed hands. Spreading accounted for 19,606 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Wednesday, supported by the impending trade deal between the United States and China. Phase One of the deal is scheduled to be signed at the White House next Wednesday.

Soybean export sales from the U.S. totalled just over 7 million tonnes in November. About 60 per cent of that was purchased by China.

Brazil’s latest prediction for the country’s soybean crop is just over 122 million tonnes, which is a 1.3 million tonne increase compared to last month’s estimate.

The USDA will release their World Agriculture Supply Demand Estimates (WASDE) on Friday. Market participants are expecting Argentina’s soybean crop estimates to be lower by about 200,000 tonnes.

CORN futures finished slightly lower today.

This morning, the USDA announced a private export sale of over 200,000 tonnes of corn, for delivery to unknown destinations.

Estimates for Brazil’s corn crop have increased to total over 98 million tonnes.

WHEAT futures were mostly stronger on Wednesday.

Ahead of the WASDE, winter wheat planting estimates are around 30.6 million acres. That’s the lowest acreage estimate in over 100 years.

Wheat shipments from the U.S. totalled 1.89 million bushels in November, which was a 15.5 per cent decrease from October.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $3.09 at US$59.61 per barrel.

In the afternoon, the Canadian dollar was trading around US76.77 cents, down from 76.87 cents the previous trading day. The U.S. dollar was C$1.3026.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 20 472.20s +1.00 +0.21%

Canola Mar 20 480.70s +1.00 +0.21%

Canola May 20 489.40s +0.80 +0.16%

Canola Jul 20 494.30s +0.50 +0.10%

Canola Nov 20 496.00s -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 Jan 20 938-2s +3-2 +0.35%

Soybean Mar 20 947-2s +3-2 +0.34%

Soybean May 20 960-2s +3-0 +0.31%

Soybean Jul 20 972-2s +2-6 +0.28%

Soybean Aug 20 976-0s +2-6 +0.28%

 

Soybean Meal Jan 20 296.9s +0.5 +0.17%

Soybean Meal Mar 20 301.8s +0.5 +0.17%

Soybean Meal May 20 306.2s +0.7 +0.23%

 

Soybean Oil Jan 20 34.27s -0.19 -0.55%

Soybean Oil Mar 20 34.56s -0.18 -0.52%

Soybean Oil May 20 34.85s -0.19 -0.54%

 

Corn Mar 20 384-2s -0-2 -0.07%

Corn May 20 391-2s -0-2 -0.06%

Corn Jul 20 397-6s unch unch

Corn Sep 20 398-2s +1-0 +0.25%

Corn Dec 20 400-6s +0-6 +0.19%

 

Oats Mar 20 299-0s +5-6 +1.96%

Oats May 20 295-2s +5-4 +1.90%

Oats Jul 20 289-2s +4-2 +1.49%

Oats Sep 20 283-4s +10-0 +3.66%

Oats Dec 20 274-2s +6-6 +2.52%

 

Wheat Mar 20 552-6s +2-4 +0.45%

Wheat May 20 556-2s +3-0 +0.54%

Wheat Jul 20 558-4s +2-2 +0.40%

Wheat Sep 20 565-2s +2-2 +0.40%

Wheat Dec 20 575-0s +2-0 +0.35%

 

Minneapolis

Spring Wheat Mar 20 547-6s +1-0 +0.18%

Spring Wheat May 20 556-6s +0-6 +0.13%

Spring Wheat Jul 20 564-2s +0-6 +0.13%

Spring Wheat Sep 20 572-2s +0-4 +0.09%

Spring Wheat Dec 20 584-4s +1-0 +0.17%

 

Kansas City

Hard Red Wheat Mar 20 480-0s +5-0 +1.05%

Hard Red Wheat May 20 487-6s +4-6 +0.98%

Hard Red Wheat Jul 20 495-6s +5-0 +1.02%

Hard Red Wheat Sep 20 504-0s +5-2 +1.05%

Hard Red Wheat Dec 20 515-0s +5-2 +1.03%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 20 126.350s -0.175 -0.14%

Live Cattle Apr 20 127.050s -0.325 -0.26%

Live Cattle Jun 20 119.200s +0.225 +0.19%

 

Feeder Cattle Jan 20 146.825s +0.925 +0.63%

Feeder Cattle Mar 20 146.525s +1.400 +0.96%

Feeder Cattle Apr 20 149.025s +1.225 +0.83%

 

Lean Hogs Feb 20 69.025s -0.200 -0.29%

Lean Hogs Apr 20 75.750s unch unch

Lean Hogs May 20 82.025s -0.100 -0.12%

About the author

Marlo Glass – MarketsFarm's recent articles

Markets at a glance

explore

Stories from our other publications