Canola hits new lows due to trade disputes

Winnipeg – ICE Futures canola contracts fell to fresh contract lows for the fourth-straight session on Thursday as the market continued to lack any supportive news.

Bearish technical signals, Canada’s ongoing trade dispute with China, losses in Chicago Board of Trade soybeans, and a lack of end user demand all weighed on values.

While expectations for a reduction in seeded canola area this year provided some underlying support, large old crop supplies were seen as limiting any concerns over a smaller new crop.

About 18,454 canola contracts traded on Thursday, which compares with Wednesday when 21,572 contracts changed hands. Spreading accounted for 8,868 of the contracts trade.

SOYBEAN futures at the Chicago Board of Trade hit fresh contract lows on Thursday, as the market reacted to disappointing weekly export sales numbers.

The United States Department of Agriculture reported weekly soybean export sales of just over 300,000 tonnes, which was below trade guesses and about half of what was sold the previous week. Soyoil and meal sales were also soft.

The lack of progress on trade talks with China, South American harvest pressure, and expectations that Midwestern seeding delays will see some intended corn acres switch to beans instead also weighed on values.

CORN futures were higher, as corn seeding continues to run well behind normal across the Midwest. Cool and wet weather in the forecasts expected to cause more delays.

U.S. corn export sales in the latest weekly report of 586,000 tonnes were at the lower end of trade estimates.

WHEAT futures were higher, seeing some follow-through buying on yesterday’s gains as end-user bargain hunting and speculative short covering provided support.

The gains in wheat came despite disappointing weekly export sales, with old crop sales of 122,061 tonnes the lowest total of the marketing year to date.

However, new crop business was solid at nearly 300,000 tonnes.

The Wheat Quality Council tour going on this week was showing average yields well above what was reported at this time last year.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.79 at US$61.81 per barrel.

In the afternoon, the Canadian dollar was trading around US74.28 cents, up from 74.54 cents the previous trading day. The U.S. dollar was C$1.3462.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 19 430.10s -2.20 -0.51%

Canola Jul 19 433.00s -3.40 -0.78%

Canola Nov 19 447.10s -3.40 -0.75%

Canola Jan 20 453.90s -3.60 -0.79%

Canola Mar 20 460.00s -3.80 -0.82%

 

Soybean May 19 830-4s -9-0 -1.07%

Soybean Jul 19 843-2s -8-4 -1.00%

Soybean Aug 19 849-4s -8-4 -0.99%

Soybean Sep 19 854-6s -8-4 -0.98%

Soybean Nov 19 865-0s -8-0 -0.92%

 

Soybean Meal May 19 292.4s -3.6 -1.22%

Soybean Meal Jul 19 296.9s -3.4 -1.13%

Soybean Meal Aug 19 298.3s -3.3 -1.09%

 

Soybean Oil May 19 27.23s -0.15 -0.55%

Soybean Oil Jul 19 27.50s -0.15 -0.54%

Soybean Oil Aug 19 27.63s -0.17 -0.61%

 

Corn May 19 362-0s +2-0 +0.56%

Corn Jul 19 370-4s +2-0 +0.54%

Corn Sep 19 377-6s +1-4 +0.40%

Corn Dec 19 387-0s +0-6 +0.19%

Corn Mar 20 399-2s -0-6 -0.19%

 

Oats May 19 297-6s -6-4 -2.14%

Oats Jul 19 282-0s -12-6 -4.33%

Oats Sep 19 268-0s -11-2 -4.03%

Oats Dec 19 257-2s -6-0 -2.28%

Oats Mar 20 252-2s -4-2 -1.66%

 

Wheat May 19 433-2s +8-2 +1.94%

Wheat Jul 19 444-0s +8-0 +1.83%

Wheat Sep 19 451-6s +8-4 +1.92%

Wheat Dec 19 467-6s +8-2 +1.80%

Wheat Mar 20 483-4s +7-4 +1.58%

 

Spring Wheat May 19 505-2s +10-2 +2.07%

Spring Wheat Jul 19 520-6s +8-6 +1.71%

Spring Wheat Sep 19 529-2s +8-2 +1.58%

Spring Wheat Dec 19 542-0s +6-6 +1.26%

Spring Wheat Mar 20 556-4s +7-4 +1.37%

 

Hard Red Wheat May 19 393-0s +3-6 +0.96%

Hard Red Wheat Jul 19 405-0s +5-0 +1.25%

Hard Red Wheat Sep 19 416-2s +5-4 +1.34%

Hard Red Wheat Dec 19 438-4s +6-0 +1.39%

Hard Red Wheat Mar 20 460-6s +5-6 +1.26%

 

Live Cattle Jun 19 113.675s -0.200 -0.18%

Live Cattle Aug 19 110.175s -0.800 -0.72%

Live Cattle Oct 19 110.675s -1.025 -0.92%

 

Feeder Cattle May 19 138.975s -2.400 -1.70%

Feeder Cattle Aug 19 147.900s -1.325 -0.89%

Feeder Cattle Sep 19 148.500s -1.800 -1.20%

 

Lean Hogs May 19 86.100s -1.000 -1.15%

Lean Hogs Jun 19 92.750s +1.525 +1.67%

Lean Hogs Jul 19 95.525s +0.150 +0.16%

 

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