Winnipeg – ICE Futures canola contracts continued their downward slide on Wednesday, hitting fresh contract lows for the second-straight session.
Speculators were noted sellers as bearish technical signals kept the bias pointed lower.
Strength in the Canadian dollar, a lack of significant end user demand and steady farmer selling also weighed on values.
However, a turn higher in Chicago Board of Trade soybeans and soyoil provided some underlying support. Short-covering at the lows also provided some support amid ideas canola was starting to look oversold.
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About 36,687 canola contracts traded on Wednesday, which compares with Tuesday when 32,287 contracts changed hands. Spreading accounted for 27,838 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade managed to settle with small gains on Wednesday, recovering from early losses by the close.
Optimism over trade talks underway between the United States and China this week provided some support.
Looking ahead, the U.S. Department of Agriculture will release six weeks of export data on Friday that was backlogged due to the government shutdown. Traders will be looking over the numbers closely for signs of just how many beans China bought over the past month.
The USDA is also holding its Annual Outlook Forum this week, with acreage estimates for 2019 out on Thursday. Average trade guesses are predicting soybean seedings in the U.S. of around 86.1 million acres, which would be down by three million on the year.
CORN futures were also higher on the day amid ideas that China may start buying more U.S. corn following recent comments from President Donald Trump.
Traders generally expect U.S. corn seedings to be up on the year in 2019, with average estimates coming in at around 91 million acres.
WHEAT futures were lower, seeing some follow through selling as U.S. wheat continued to try and uncover some demand. Bearish technical signals added to the declines.
Export demand remains soft, with the U.S. missing out on the latest Egyptian tender once again.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up 83 cents at US$56.92 per barrel.
In the afternoon, the Canadian dollar was trading around US75.94 cents, up from 75.54 cents the previous trading day. The U.S. dollar was C$1.3169.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 19 470.90s -2.80 -0.59%
Canola May 19 479.30s -3.00 -0.62%
Canola Jul 19 486.60s -2.90 -0.59%
Canola Nov 19 490.50s -1.80 -0.37%
Canola Jan 20 496.40s -1.40 -0.28%
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 19 902-4s +1-6 +0.19%
Soybean May 19 916-0s +1-4 +0.16%
Soybean Jul 19 929-6s +1-6 +0.19%
Soybean Aug 19 935-2s +1-6 +0.19%
Soybean Sep 19 939-2s +2-0 +0.21%
Soybean Meal Mar 19 305.2s -0.2 -0.07%
Soybean Meal May 19 309.2s -0.3 -0.10%
Soybean Meal Jul 19 313.1s -0.3 -0.10%
Soybean Oil Mar 19 29.96s +0.22 +0.74%
Soybean Oil May 19 30.28s +0.20 +0.66%
Soybean Oil Jul 19 30.61s +0.20 +0.66%
Corn Mar 19 370-6s +1-0 +0.27%
Corn May 19 379-4s +1-4 +0.40%
Corn Jul 19 387-4s +1-4 +0.39%
Corn Sep 19 392-4s +1-6 +0.45%
Corn Dec 19 398-4s +1-6 +0.44%
Oats Mar 19 269-6s -0-2 -0.09%
Oats May 19 274-0s -1-4 -0.54%
Oats Jul 19 274-6s -2-4 -0.90%
Oats Sep 19 266-6s -2-4 -0.93%
Oats Dec 19 259-6s -1-4 -0.57%
Wheat Mar 19 480-6s -9-0 -1.84%
Wheat May 19 484-2s -8-0 -1.63%
Wheat Jul 19 488-2s -8-2 -1.66%
Wheat Sep 19 498-4s -7-4 -1.48%
Wheat Dec 19 513-4s -7-2 -1.39%
Minneapolis
Spring Wheat Mar 19 548-6s -6-6 -1.22%
Spring Wheat May 19 548-2s -7-0 -1.26%
Spring Wheat Jul 19 552-2s -8-4 -1.52%
Spring Wheat Sep 19 560-6s -7-4 -1.32%
Spring Wheat Dec 19 574-6s -6-4 -1.12%
Kansas City
Hard Red Wheat Mar 19 450-0s -10-6 -2.33%
Hard Red Wheat May 19 458-0s -10-2 -2.19%
Hard Red Wheat Jul 19 468-4s -9-6 -2.04%
Hard Red Wheat Sep 19 481-0s -9-2 -1.89%
Hard Red Wheat Dec 19 499-2s -8-6 -1.72%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 19 128.325s +0.450 +0.35%
Live Cattle Apr 19 129.200s +0.750 +0.58%
Live Cattle Jun 19 119.325s +0.725 +0.61%
Feeder Cattle Mar 19 143.875s +0.125 +0.09%
Feeder Cattle Apr 19 146.075s +0.075 +0.05%
Feeder Cattle May 19 147.000s unch unch
Lean Hogs Apr 19 52.975s -3.550 -6.28%
Lean Hogs May 19 63.025s -2.425 -3.71%
Lean Hogs Jun 19 72.750s -0.975 -1.32%
