Canola investors cautious ahead of holidays

Winnipeg, December 22 (CNS Canada) – Canola contracts on the ICE Futures Canada platform finished mixed on Friday, as traders rolled out of the January contract ahead of the holidays in favour of March.

 

Investors took care to position themselves ahead of the extended holiday weekend. No one wanted to be caught in a risky placement before markets reopened next week. U.S. markets will re-open for business on Tuesday and Canadian ones the day after that.

Gains in U.S. soybeans and soyoil lent some strength to the front-month January contract. The more-active March contract momentarily broke through major resistance at C$500 per tonne but was unable to hold the line and finished well below it.

 

Lukewarm demand and rising supplies of oilseeds in the global market weighed down the more-deferred values.

 

Around 22,051 canola contracts were traded on Friday, which compares with Thursday when around 18,707 contracts changed hands. Spreading accounted for 15,360 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

 

Soybean futures on the Chicago Board of Trade ended roughly a cent higher on Friday in technical trading.

 

The U.S. sold a quarter million tonnes of soybeans to China, which was supportive.

However most of Brazil and Argentina are receiving favourable rains, which undermined values.

Corn futures eked out gains of nearly one cent to end the week, propped up by short-covering.

Demand for ethanol and livestock feed in the U.S. underpinned the market.

 

However, the European Union hiked its corn production estimate by four per cent, which dragged on values.

 

Chicago wheat futures finished one to two cents lower on Friday in technical trade.

 

Millers in Thailand purchased 150,000 tonnes of wheat from the U.S., which was supportive.

The low price of U.S. wheat has recently drawn interest from countries that normally buy from the Black Sea region.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 11 cents at US$58.32 per barrel.

 

In the afternoon, the Canadian dollar was trading around US78.59 cents, up from 78.45 cents the previous trading day.

The U.S. dollar was C$1.2724.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 18 496.20s +4.10 +0.83%

Canola Mar 18 497.80s unch unch

Canola May 18 504.70s -0.40 -0.08%

Canola Jul 18 508.60s -0.10 -0.02%

Canola Nov 18 497.20s unch unch

 

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 Jan 18 949-4s +0-6 +0.08%

Soybeans Mar 18 960-2s +1-2 +0.13%

Soybeans May 18 971-2s +0-6 +0.08%

Soybeans Jul 18 981-6s +0-6 +0.08%

Soybeans Aug 18 984-0s +0-4 +0.05%

 

Soybean Meal Jan 18 312.8s -1.4 -0.45%

Soybean Meal Mar 18 316.7s -1.4 -0.44%

Soybean Meal May 18 320.3s -1.2 -0.37%

 

Soybean Oil Jan 18 32.74s +0.07 +0.21%

Soybean Oil Mar 18 32.94s +0.11 +0.34%

Soybean Oil May 18 33.10s +0.11 +0.33%

 

Corn Mar 18 352-0s +0-6 +0.21%

Corn May 18 360-4s +1-0 +0.28%

Corn Jul 18 368-6s +1-0 +0.27%

Corn Sep 18 376-0s +1-0 +0.27%

Corn Dec 18 384-4s +0-6 +0.20%

Oats Mar 18 242-4s -1-4 -0.61%

Oats May 18 248-2s -1-6 -0.70%

Oats Jul 18 255-2s -2-2 -0.87%

Oats Sep 18 257-2s -2-2 -0.87%

Oats Dec 18 259-2s -2-2 -0.86%

 

Wheat Mar 18 424-6s -2-2 -0.53%

Wheat May 18 437-4s -1-4 -0.34%

Wheat Jul 18 450-0s -1-6 -0.39%

Wheat Sep 18 461-2s -2-4 -0.54%

Wheat Dec 18 476-4s -3-0 -0.63%

 

Minneapolis

Spring Wheat Mar 18 611-6s -5-2 -0.85%

Spring Wheat May 18 620-0s -5-2 -0.84%

Spring Wheat Jul 18 625-0s -5-2 -0.83%

Spring Wheat Sep 18 622-0s -4-4 -0.72%

Spring Wheat Dec 18 630-4s -5-2 -0.83%

 

Kansas City

Hard Red Wheat Mar 18 422-2s -2-0 -0.47%

Hard Red Wheat May 18 435-6s -1-4 -0.34%

Hard Red Wheat Jul 18 452-6s -1-0 -0.22%

Hard Red Wheat Sep 18 467-4s -0-6 -0.16%

Hard Red Wheat Dec 18 488-2s -0-6 -0.15%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 17 119.825s +0.200 +0.17%

Live Cattle Feb 18 118.575s -1.100 -0.92%

Live Cattle Apr 18 119.275s -1.300 -1.08%

 

Feeder Cattle Jan 18 141.550s -1.375 -0.96%

Feeder Cattle Mar 18 138.550s -1.850 -1.32%

Feeder Cattle Apr 18 139.450s -1.650 -1.17%

 

Lean Hogs Feb 18 69.975s +1.400 +2.04%

Lean Hogs Apr 18 74.775s +1.700 +2.33%

Lean Hogs May 18 79.750s +1.450 +1.85%

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