Canola lower at front, higher in deferred positions

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts settled mixed on Friday, with losses in the front months and gains in the more deferred positions as the old/new crop spreads narrowed in ahead of the weekend.

Good seeding weather across the Prairies and spillover selling from a downturn in Chicago Board of Trade soybeans weighed on prices in early activity. A move below the 50-day moving average in the July contract was also bearish, as it triggered some fund long liquidation, according to a broker.

However, a lack of significant farmer selling on the other side provided some underlying support.

Canola also never followed soybeans higher on Thursday, and had little reason to follow lower when beans retreated on Friday.

About 16,596 canola contracts traded, which compares with Thursday when 15,204 contracts changed hands. Spreading accounted for 7,420 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade moved lower on Friday, seeing a correction following Thursday’s late gains as rumours that a resolution to the trade dispute between China and the United States had been reached, proved short lived.

Negotiations between the two countries this week failed to show much headway. China also announced emergency measures to increase its own soybean plantings and make up for lost imports.

However, the ongoing concerns over Argentina’s crop remained supportive, with heavy rains in parts of the country now causing harvest delays after drought during the growing season cut into yields.

CORN futures ended slightly lower, taking some direction from soybeans and wheat.

Rains were expected to cause some seeding delays across parts of the Midwest, although the moisture will be beneficial for crop development in the long run.

South American weather was being followed closely by corn traders, with rains in Argentina also delaying the corn harvest and Brazil’s second corn crop dealing with dryness.

WHEAT futures corrected lower on Friday, as traders booked profits after recent gains. However, the underlying fundamentals that gave wheat a boost earlier in the week remained supportive.

A crop tour of Kansas wrapped up with a forecast predicting the smallest wheat production in the state in nearly 30 years. Average yields were estimated at 37 bushels per acre, which compares with last year’s 46 and the five-year average of 41 bushels per acre.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 30 cents at US$69.81 per barrel.

In the afternoon, the Canadian dollar was trading around US77.82 cents. The U.S. dollar was C$1.2850.

 

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 18 526.60s -1.00 -0.19%

Canola Jul 18 527.10s -1.00 -0.19%

Canola Nov 18 520.00s +1.10 +0.21%

Canola Jan 19 524.50s +1.30 +0.25%

Canola Mar 19 527.00s +1.00 +0.19%

 

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.

 

Soybeans May 18 1027-2s -16-0 -1.53%

Soybeans Jul 18 1036-6s -16-4 -1.57%

Soybeans Aug 18 1040-0s -16-2 -1.54%

Soybeans Sep 18 1038-2s -14-0 -1.33%

Soybeans Nov 18 1037-2s -12-2 -1.17%

 

Soybean Meal May 18 394.4s -4.0 -1.00%

Soybean Meal Jul 18 393.7s -4.9 -1.23%

Soybean Meal Aug 18 390.4s -5.0 -1.26%

 

Soybean Oil May 18 30.56s -0.02 -0.07%

Soybean Oil Jul 18 30.77s -0.04 -0.13%

Soybean Oil Aug 18 30.88s -0.05 -0.16%

 

Corn May 18 398-6s -0-6 -0.19%

Corn Jul 18 406-2s -1-6 -0.43%

Corn Sep 18 413-6s -1-6 -0.42%

Corn Dec 18 421-0s -1-2 -0.30%

Corn Mar 19 428-4s -1-4 -0.35%

 

Oats May 18 223-6s -2-0 -0.89%

Oats Jul 18 235-0s -2-0 -0.84%

Oats Sep 18 239-6s -0-2 -0.10%

Oats Dec 18 251-4s +0-6 +0.30%

Oats Mar 19 257-2s +0-4 +0.19%

 

Wheat May 18 527-4s -13-0 -2.41%

Wheat Jul 18 526-2s -11-6 -2.18%

Wheat Sep 18 541-6s -11-0 -1.99%

Wheat Dec 18 563-0s -9-6 -1.70%

Wheat Mar 19 579-2s -9-0 -1.53%

 

Minneapolis

Spring Wheat May 18 629-6s -1-4 -0.24%

Spring Wheat Jul 18 623-0s -7-0 -1.11%

Spring Wheat Sep 18 629-0s -7-4 -1.18%

Spring Wheat Dec 18 640-6s -7-4 -1.16%

Spring Wheat Mar 19 652-2s -6-6 -1.02%

 

Kansas City

Hard Red Wheat May 18 535-6s -11-6 -2.15%

Hard Red Wheat Jul 18 555-6s -12-0 -2.11%

Hard Red Wheat Sep 18 573-6s -11-6 -2.01%

Hard Red Wheat Dec 18 597-6s -10-6 -1.77%

Hard Red Wheat Mar 19 613-0s -9-4 -1.53%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 18 106.050s -0.475 -0.45%

Live Cattle Aug 18 105.075s -0.450 -0.43%

Live Cattle Oct 18 108.450s -0.525 -0.48%

 

Feeder Cattle May 18 140.400s -0.400 -0.28%

Feeder Cattle Aug 18 146.325s -0.250 -0.17%

Feeder Cattle Sep 18 146.775s -0.275 -0.19%

 

Lean Hogs May 18 67.075s unch unch

Lean Hogs Jun 18 73.525s +0.025 +0.03%

Lean Hogs Jul 18 75.575s -0.100 -0.13%

About the author

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

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