Canola holds stronger with soy support

Winnipeg – ICE Futures canola contracts were stronger on Monday, as gains in Chicago Board of Trade soyoil provided some support.

Weakness in the Canadian dollar, solid demand from domestic crushers and supportive chart signals also underpinned the futures.

However, ample supplies in the commercial pipeline kept a lid on the upside, according to participants.

Statistics Canada releases its latest stocks report on Feb. 5, and positioning ahead of the data accounted for some of the thin and choppy activity. The report will show grain supplies in the country as of Dec. 31, and should provide a picture of usage-to-date.

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About 14,791 canola contracts traded on Monday, which compares with Friday when 17,697 contracts changed hands. Spreading accounted for 9,872 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade settled with small gains on Monday, as solid export demand provided support.

The United States Department of Agriculture reported private export sales of 612,000 tonnes of soybeans this morning, which helped confirm ideas that China would be buying more beans after last week’s trade talks.

Weekly export inspections of nearly a million tonnes for the week ended Jan. 31 were up slightly on the week, but well off what moved during the same week a year ago.

However, South American harvest pressure weighed on values. Brazil’s soybean harvest was 19 per cent complete as of Jan. 31, according to a report from AgRural, which was well ahead of the five-year average of six per cent.

The USDA will release its monthly supply/demand report on Friday, along with some data from January that was delayed due to the government shutdown. Positioning ahead of the reports was a feature.

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However, activity was subdued with many Asian markets closed for the Lunar New Year holiday.

CORN posted small gains, although the market remained stuck in its sideways trading range.

Weekly U.S. corn export inspections came in at 901,214 tonnes, which was down from both the previous week and the year-ago level. Japan and Mexico were the two largest buyers.

WHEAT futures were narrowly mixed on the day, with a softer tone in Minneapolis spring wheat and gains in the winter wheat contracts.

Improving weather conditions across some U.S. winter wheat growing regions were bearish, with snow hitting the northern tier states and temperatures turning more moderate after last week’s cold snap.

However, expectations for improved export demand provided some support.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 70 cents at US$54.56 per barrel.

In the afternoon, the Canadian dollar was trading around US76.18 cents, up from 76.37 cents the previous trading day. The U.S. dollar was C$1.3127.

 

Winnipeg ICE Futures Canada dollars per tonne.

 

Canola Mar 19 483.90s +1.50 +0.31%

Canola May 19 491.80s +1.40 +0.29%

Canola Jul 19 499.10s +1.40 +0.28%

Canola Nov 19 496.60s +1.10 +0.22%

Canola Jan 20 501.20s +0.80 +0.16%

 

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 Mar 19 918-4s +0-6 +0.08%

Soybean May 19 932-4s +1-0 +0.11%

Soybean Jul 19 945-0s +0-6 +0.08%

Soybean Aug 19 950-2s +1-0 +0.11%

Soybean Sep 19 952-2s +1-0 +0.11%

 

Soybean Meal Mar 19 310.6s -1.2 -0.38%

Soybean Meal May 19 314.6s -1.2 -0.38%

Soybean Meal Jul 19 318.4s -1.2 -0.38%

 

Soybean Oil Mar 19 30.13s +0.24 +0.80%

Soybean Oil May 19 30.44s +0.23 +0.76%

Soybean Oil Jul 19 30.74s +0.23 +0.75%

 

Corn Mar 19 379-2s +1-0 +0.26%

Corn May 19 387-4s +0-4 +0.13%

Corn Jul 19 395-2s +0-4 +0.13%

Corn Sep 19 398-2s +0-6 +0.19%

Corn Dec 19 402-4s +0-2 +0.06%

 

Oats Mar 19 289-0s +0-4 +0.17%

Oats May 19 289-4s unch unch

Oats Jul 19 288-2s unch unch

Oats Sep 19 279-2s unch unch

Oats Dec 19 274-2s unch unch

 

Wheat Mar 19 525-6s +1-4 +0.29%

Wheat May 19 529-6s +1-4 +0.28%

Wheat Jul 19 533-2s +1-2 +0.23%

Wheat Sep 19 540-4s +1-0 +0.19%

Wheat Dec 19 552-2s +0-2 +0.05%

 

Minneapolis

Spring Wheat Mar 19 574-6s -0-6 -0.13%

Spring Wheat May 19 578-0s -1-2 -0.22%

Spring Wheat Jul 19 585-2s -0-4 -0.09%

Spring Wheat Sep 19 590-6s -1-0 -0.17%

Spring Wheat Dec 19 602-0s -1-2 -0.21%

 

Kansas City

Hard Red Wheat Mar 19 510-4s +1-6 +0.34%

Hard Red Wheat May 19 518-2s +1-0 +0.19%

Hard Red Wheat Jul 19 526-4s +0-4 +0.10%

Hard Red Wheat Sep 19 535-4s +0-4 +0.09%

Hard Red Wheat Dec 19 549-6s +0-2 +0.05%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 19 125.725s +0.275 +0.22%

Live Cattle Apr 19 127.000s +0.725 +0.57%

Live Cattle Jun 19 117.000s +0.850 +0.73%

 

Feeder Cattle Mar 19 144.225s +1.700 +1.19%

Feeder Cattle Apr 19 145.825s +1.825 +1.27%

Feeder Cattle May 19 146.375s +1.775 +1.23%

 

Lean Hogs Feb 19 57.375s +1.025 +1.82%

Lean Hogs Apr 19 63.050s +2.925 +4.86%

Lean Hogs May 19 69.825s +2.175 +3.22%

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