Canola hits two-month highs

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts posted solid gains on Monday, taking some direction from a rally in Chicago Board of Trade soybeans.

South American weather concerns provided the catalyst for the gains in beans, which spilled into the canola market.

Chart-based buying contributed to the strength in canola with some stops hit on the way up as prices hit their best levels since early December. Continued weakness in the Canadian dollar was also supportive.

However, soyoil futures were down in Chicago, which tempered the upside potential in canola.

About 24,034 canola contracts traded on Monday, which compares with
Friday when 20,094 contracts changed hands. Spreading accounted for 15,282 of the contracts traded.

SOYBEANS
Soybean futures at the Chicago Board of Trade rallied sharply higher on Monday amid South American weather concerns. Rain only hit about half of Argentina over the weekend, and forecasts are calling for more hot and dry weather.

Some stops were hit on the way up, adding to the firmer tone. Reports that the U.S. had sold 312,000 tonnes of beans to unknown destinations were also supportive.

However, the USDA also reported that Chinese buyers had cancelled 455,000 tonnes worth of previously reported U.S. sales which limited the upside potential in beans.

The end of a truckers’ strike in Argentina should also see export competition pick back up out of that country, as old crop supplies remain large there despite any problems with the crop in the fields now.

CORN

Corn futures found some spillover support from the rally in soybeans. Solid export demand contributed to the gains, as South Korea was said to be in the market for some U.S. origin corn.

However, ample supplies and scale-up farmer selling tempered the advances.

WHEAT
Wheat futures posted solid gains, with the Chicago and Kansas City winter wheat contracts posting the largest advances amid concerns over the state of the U.S. winter wheat crops.

While parts of the U.S. Plains saw some much needed snow over the weekend, conditions remain dry overall which saw traders keeping a weather premium in the futures.

However, world supplies remain large, with the U.S. facing stiff competition out of Russia into many export markets.

 

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were down 64 cents at US$61.15 per barrel.

In the afternoon, the Canadian dollar was trading around US79.35 cents, down from 79.56 cents the previous trading day. The U.S. dollar was C$1.2602.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 18 499.30s +1.10 +0.22%

Canola May 18 505.50s +1.10 +0.22%

Canola Jul 18 510.20s +0.90 +0.18%

Canola Nov 18 507.70s +1.20 +0.24%

Canola Jan 19 512.00s +1.30 +0.25%

 

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

Soybeans Mar 18 987-6s +4-6 +0.48%

Soybeans May 18 998-6s +4-4 +0.45%

Soybeans Jul 18 1008-2s +4-2 +0.42%

Soybeans Aug 18 1009-6s +4-0 +0.40%

Soybeans Sep 18 1005-0s +4-0 +0.40%

 

Soybean Meal Mar 18 341.7s +6.3 +1.88%

Soybean Meal May 18 345.1s +6.0 +1.77%

Soybean Meal Jul 18 346.4s +5.3 +1.55%

 

Soybean Oil Mar 18 32.21s -0.35 -1.07%

Soybean Oil May 18 32.40s -0.34 -1.04%

Soybean Oil Jul 18 32.59s -0.35 -1.06%

 

Corn Mar 18 365-6s +0-4 +0.14%

Corn May 18 373-2s +0-4 +0.13%

Corn Jul 18 381-0s +0-6 +0.20%

Corn Sep 18 387-2s +0-2 +0.06%

Corn Dec 18 395-0s +0-2 +0.06%

 

Oats Mar 18 269-4s -3-6 -1.37%

Oats May 18 269-2s -3-6 -1.37%

Oats Jul 18 266-4s -2-0 -0.74%

Oats Sep 18 264-4s -3-0 -1.12%

Oats Dec 18 262-6s -6-0 -2.23%

 

Wheat Mar 18 456-2s -4-2 -0.92%

Wheat May 18 469-2s -3-6 -0.79%

Wheat Jul 18 482-4s -3-6 -0.77%

Wheat Sep 18 497-0s -3-0 -0.60%

Wheat Dec 18 516-4s -2-2 -0.43%

 

Minneapolis

Spring Wheat Mar 18 613-0s +0-6 +0.12%

Spring Wheat May 18 625-2s +1-2 +0.20%

Spring Wheat Jul 18 634-4s +1-4 +0.24%

Spring Wheat Sep 18 637-6s +1-0 +0.16%

Spring Wheat Dec 18 643-6s +0-2 +0.04%

 

Kansas City

Hard Red Wheat Mar 18 474-4s -6-4 -1.35%

Hard Red Wheat May 18 489-4s -6-2 -1.26%

Hard Red Wheat Jul 18 506-2s -5-2 -1.03%

Hard Red Wheat Sep 18 522-0s -4-6 -0.90%

Hard Red Wheat Dec 18 541-6s -4-0 -0.73%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 18 125.775s +0.175 +0.14%

Live Cattle Apr 18 123.725s -0.250 -0.20%

Live Cattle Jun 18 115.525s -0.200 -0.17%

 

Feeder Cattle Mar 18 147.250s -1.050 -0.71%

Feeder Cattle Apr 18 148.650s -0.700 -0.47%

Feeder Cattle May 18 148.925s -0.425 -0.28%

 

Lean Hogs Feb 18 73.400s -0.450 -0.61%

Lean Hogs Apr 18 69.450s +0.225 +0.33%

Lean Hogs May 18 75.025s -0.075 -0.10%

 

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By Phil Franz-Warkentin Commodity News Service Canada's recent articles

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