Canola holds; soybeans up

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts settled near unchanged in the most active months on Monday, retreating from earlier gains as the market ran into technical resistance.

Gains in Chicago Board of Trade soybeans provided support for most of the session, but soyoil futures were softer on the day.

Forecasts calling for much needed rain in parts of Western Canada put some pressure on values, although traders were also showing some caution as they wait to see if the precipitation actually materializes.

Large old crop supplies and expectations for record large acres this year weighed on prices, according to participants.

About 11,856 canola contracts traded, which compares with Friday when 9,407 contracts changed hands. Spreading accounted for 3,088 of the contracts traded.

SOYBEAN futures were up sharply on Monday. Easing tensions between the United States and China accounted for some of the gains in beans, as the latest tweets from President Donald Trump over the weekend hinted that a deal was being negotiated.

Chart-based buying added to the strength in soybeans, as overnight losses uncovered support and investors returned to the buy side.

Weekly U.S. soybean export inspections of nearly 700,000 tonnes came in at the high end of trade guesses, providing additional support.

CORN futures held near unchanged, as support from the advances in soybeans was countered by the bearish influence of the declining wheat futures.

Ideas that U.S. farmers made good seeding progress over the past week put some pressure on values, with about two-thirds of the crop likely in the ground as of this past Sunday.

WHEAT futures were lower, as improving weather conditions weighed on values. While some U.S. wheat growing regions remain on the dry side, others received some welcome moisture over the weekend and there is more rain in the forecasts over the next week.

Poor export demand and bearish chart signals also weighed on wheat, with a move below technical support levels triggering additional selling pressure.

The U.S. spring wheat crop is thought to be at least 50 per cent seeded by now, as farmers make up for a late start.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 26 cents at US$71.15 per barrel.

In the afternoon, the Canadian dollar was trading around US78.10 cents, down from 78.18 cents the previous trading day. The U.S. dollar was C$1.2804.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 18 531.70s -0.10 -0.02%

Canola Jul 18 532.20s -0.10 -0.02%

Canola Nov 18 519.50s unch unch

Canola Jan 19 524.10s +1.30 +0.25%

Canola Mar 19 526.50s +0.80 +0.15%

 

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 May 18 1013-0s +18-2 +1.83%

Soybeans Jul 18 1017-6s +14-4 +1.45%

Soybeans Aug 18 1021-0s +13-6 +1.37%

Soybeans Sep 18 1020-6s +10-6 +1.06%

Soybeans Nov 18 1023-2s +9-0 +0.89%

 

Soybean Meal May 18 389.8s +7.1 +1.86%

Soybean Meal Jul 18 387.6s +9.0 +2.38%

Soybean Meal Aug 18 384.4s +7.6 +2.02%

 

Soybean Oil May 18 31.12s -0.05 -0.16%

Soybean Oil Jul 18 31.25s -0.06 -0.19%

Soybean Oil Aug 18 31.35s -0.07 -0.22%

 

Corn May 18 389-0s -0-6 -0.19%

Corn Jul 18 396-4s unch unch

Corn Sep 18 404-6s -0-2 -0.06%

Corn Dec 18 414-2s -0-2 -0.06%

Corn Mar 19 423-0s -0-2 -0.06%

 

Oats May 18 229-0s +5-4 +2.46%

Oats Jul 18 239-2s +5-2 +2.24%

Oats Sep 18 245-4s +5-0 +2.08%

Oats Dec 18 255-6s +5-2 +2.10%

Oats Mar 19 259-6s +4-2 +1.66%

 

Wheat May 18 480-4s -9-0 -1.84%

Wheat Jul 18 491-2s -7-4 -1.50%

Wheat Sep 18 508-0s -7-6 -1.50%

Wheat Dec 18 530-2s -7-0 -1.30%

Wheat Mar 19 548-4s -7-0 -1.26%

 

Minneapolis

Spring Wheat May 18 613-4s unch unch

Spring Wheat Jul 18 601-4s -3-4 -0.58%

Spring Wheat Sep 18 608-6s -3-0 -0.49%

Spring Wheat Dec 18 620-4s -3-0 -0.48%

Spring Wheat Mar 19 632-0s -3-0 -0.47%

 

Kansas City

Hard Red Wheat May 18 496-6s -5-0 -1.00%

Hard Red Wheat Jul 18 509-6s -8-2 -1.59%

Hard Red Wheat Sep 18 528-4s -8-0 -1.49%

Hard Red Wheat Dec 18 554-2s -7-6 -1.38%

Hard Red Wheat Mar 19 571-4s -8-2 -1.42%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 18 104.625s -3.000 -2.79%

Live Cattle Aug 18 101.900s -2.525 -2.42%

Live Cattle Oct 18 105.275s -2.200 -2.05%

 

Feeder Cattle May 18 135.400s -3.025 -2.19%

Feeder Cattle Aug 18 140.375s -3.525 -2.45%

Feeder Cattle Sep 18 140.800s -3.175 -2.21%

 

Lean Hogs May 18 65.250s -0.050 -0.08%

Lean Hogs Jun 18 76.150s +1.050 +1.40%

Lean Hogs Jul 18 78.725s +1.750 +2.27%

 

About the author

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

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