Canola mixed amid China rumours

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished mixed on Tuesday, with strength in nearby contracts due to short covering.

Earlier in the day, rumours swirled regarding China increasing its Canadian canola imports. However, the Western Producer confirmed that China will continue to block shipments from Richardson International and Viterra Inc.

Canola seed shipments from other companies will continue to be delivered to China, with a lowered dockage rate of one per cent.

“We’ve seen promising signs of positive relations on specific issues,” Canadian Prime Minister Justin Trudeau told reporters when asked about progress on canola trade with China.

“We’re going to continue working to try and ensure that our farmers, our manufacturers, our exporters, continue to have access to the markets around the world even in this difficult time.”

On Tuesday, 40,578 contracts were traded, which compares with Monday when 25,028 contracts changed hands. Spreading accounted for 30,562 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Tuesday, following prospective planting estimates from the United States Department of Agriculture (USDA).

Soybean acreage is expected to be 10 per cent higher this year, totalling 83.5 million acres. That’s slightly lower than market expectations, and was supportive of soybean values.

The USDA also released grain and oilseed stocks as of March 1. Soybean stocks have dropped by 17 per cent to total 2.25 billion bushels, which was higher than market expectations.

CORN futures were slightly weaker on Tuesday.
This morning, the USDA announced a sale of 113,000 tonnes of corn, purchased by Japan.

U.S. corn acres are expected to reach nearly 97 million acres this year, which is an 8 per cent increase from last year. That’s higher than market expectations of 94.3 million.

The USDA said corn stocks are at 7.95 billion bushels, which was lower than trade expectations.

WHEAT futures were mixed on Tuesday, with Chicago May wheat showing small losses while Kansas City and Minneapolis gained strength.
Marketing year to date wheat shipments are ahead of last year’s pace by approximately 1.6 million tonnes.
The USDA called for planted wheat acres to slip one per cent in 2020 to 44.66 million. That’s the lowest amount since 1919.
The USDA pegged total wheat stocks at 1.41 billion bushels, which is 11 per cent lower than the previous year and on par with average market prediction of 1.43 million.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 39 cents at US$20.48 per barrel.

In the afternoon, the Canadian dollar was trading around US70.49 cents, down from $70.64 cents the previous trading day. The U.S. dollar was C$1.4187.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 20 468.80s +1.30 +0.28%

Canola Jul 20 477.70s +1.30 +0.27%

Canola Nov 20 485.70s -0.20 -0.04%

Canola Jan 21 490.90s -0.30 -0.06%

Canola Mar 21 496.00s -0.30 -0.06%

 

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 May 20 886-0s +3-6 +0.43%

Soybean Jul 20 889-4s +3-0 +0.34%

Soybean Aug 20 888-6s +2-6 +0.31%

Soybean Sep 20 881-0s +3-2 +0.37%

Soybean Nov 20 877-4s +3-0 +0.34%

 

Soybean Meal May 20 321.5s -4.0 -1.23%

Soybean Meal Jul 20 318.9s -2.0 -0.62%

Soybean Meal Aug 20 314.0s -1.0 -0.32%

 

Soybean Oil May 20 27.01s +0.14 +0.52%

Soybean Oil Jul 20 27.36s +0.13 +0.48%

Soybean Oil Aug 20 27.51s +0.11 +0.40%

 

Corn May 20 340-6s -0-4 -0.15%

Corn Jul 20 346-0s -1-4 -0.43%

Corn Sep 20 349-6s -2-2 -0.64%

Corn Dec 20 357-4s -2-2 -0.63%

Corn Mar 21 368-4s -0-6 -0.20%

 

Oats May 20 264-2s +2-6 +1.05%

Oats Jul 20 267-4s +3-6 +1.42%

Oats Sep 20 261-2s +1-6 +0.67%

Oats Dec 20 256-0s unch unch

Oats Mar 21 260-0s unch unch

 

Wheat May 20 568-6s -0-6 -0.13%

Wheat Jul 20 562-4s +4-2 +0.76%

Wheat Sep 20 565-2s +6-2 +1.12%

Wheat Dec 20 572-6s +6-0 +1.06%

Wheat Mar 21 578-6s +6-6 +1.18%

 

Minneapolis

Spring Wheat May 20 539-2s +4-4 +0.84%

Spring Wheat Jul 20 548-0s +3-4 +0.64%

Spring Wheat Sep 20 556-6s +3-4 +0.63%

Spring Wheat Dec 20 567-2s +3-4 +0.62%

Spring Wheat Mar 21 577-6s +3-4 +0.61%

 

Kansas City

Hard Red Wheat May 20 493-0s +6-2 +1.28%

Hard Red Wheat Jul 20 499-4s +6-6 +1.37%

Hard Red Wheat Sep 20 507-0s +7-2 +1.45%

Hard Red Wheat Dec 20 518-2s +7-4 +1.47%

Hard Red Wheat Mar 21 527-6s +7-0 +1.34%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 20 101.825s +2.625 +2.65%

Live Cattle Jun 20 92.075s +3.000 +3.37%

Live Cattle Aug 20 93.600s +2.975 +3.28%

 

Feeder Cattle Apr 20 121.925s +1.875 +1.56%

Feeder Cattle May 20 122.900s +2.000 +1.65%

Feeder Cattle Aug 20 128.900s +1.975 +1.56%

 

Lean Hogs Apr 20 52.200s -1.750 -3.24%

Lean Hogs May 20 52.975s -0.150 -0.28%

Lean Hogs Jun 20 60.325s +0.550 +0.92%

 

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