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Canola mixed at closing bell

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were narrowly mixed at Tuesday’s close, as support from gains in Chicago Board of Trade soybeans was countered by the bearish influence of the firmer Canadian dollar.

Supportive technical signals contributed early gains, as recent losses were starting to look a bit overdone. The possibility of increased export demand from China also underpinned the futures.

Persistent winter weather in parts of Alberta and Saskatchewan raised some concerns over late seeding. However, there’s plenty of time for the ground to warm up, and most analysts are still predicting record canola seedings this spring.

About 31,345 canola contracts traded on Tuesday, which compares with Monday when 16,225 contracts changed hands. Spreading was a feature, accounting for 20,098 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade posted small gains on Tuesday, as the market saw a corrective bounce following Monday’s losses. Gains in soymeal and solid demand from the domestic crush sector contributed to the firmer tone in beans.

However, expectations for increased soybean acres in the United States this spring tempered the upside. Concerns over trade with China were also back at the forefront of the grain and oilseed markets.

CORN futures were down slightly on the day, but still holding rangebound overall.

The U.S. corn crop was three per cent seeded as of this past Sunday, which is off the average pace of six per cent for this time of year. More delays are expected, as much of the Midwest deals with adverse weather.

China announced it would impose 179 per cent temporary deposits on sorghum imports from the U.S. The move in advance of more permanent tariffs was the latest in the mounting trade dispute between the two countries, and follows an anti-dumping investigation into claims that U.S. sorghum was being unfairly subsidized.

WHEAT futures were mostly higher, seeing some stability after recent losses.

The U.S. spring wheat crop was only three per cent seeded as of this past Sunday, according to the USDA, which was well off the 15 per cent average for this time of year.

However, ample world supplies remained a bearish influence in the background. Forecasts calling for improving moisture conditions in the dry southern Plains also weighed on winter wheat values.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were 30 cents at US$66.52 per barrel.

In the afternoon, the Canadian dollar was trading around US79.67 cents, up from 79.57 cents the previous trading day. The U.S. dollar was C$1.2552.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 18 521.30s +0.50 +0.10%

Canola Jul 18 523.80s +0.50 +0.10%

Canola Nov 18 511.30s unch unch

Canola Jan 19 515.50s -0.10 -0.02%

Canola Mar 19 516.90s -0.50 -0.10%

 

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 May 18 1046-0s +4-0 +0.38%

Soybeans Jul 18 1057-2s +4-0 +0.38%

Soybeans Aug 18 1058-4s +5-0 +0.47%

Soybeans Sep 18 1051-0s +5-2 +0.50%

Soybeans Nov 18 1045-2s +5-0 +0.48%

 

Soybean Meal May 18 381.1s +3.3 +0.87%

Soybean Meal Jul 18 385.4s +3.4 +0.89%

Soybean Meal Aug 18 385.1s +3.7 +0.97%

 

Soybean Oil May 18 31.19s +0.01 +0.03%

Soybean Oil Jul 18 31.45s unch unch

Soybean Oil Aug 18 31.59s +0.01 +0.03%

 

Corn May 18 380-2s -2-2 -0.59%

Corn Jul 18 389-2s -1-6 -0.45%

Corn Sep 18 396-6s -1-4 -0.38%

Corn Dec 18 406-0s -1-2 -0.31%

Corn Mar 19 413-6s -1-2 -0.30%

 

Oats May 18 228-6s -1-6 -0.76%

Oats Jul 18 235-6s -1-0 -0.42%

Oats Sep 18 243-4s -1-0 -0.41%

Oats Dec 18 254-6s -1-4 -0.59%

Oats Mar 19 261-2s -1-6 -0.67%

 

Wheat May 18 466-2s +4-0 +0.87%

Wheat Jul 18 481-4s +2-4 +0.52%

Wheat Sep 18 499-2s +1-6 +0.35%

Wheat Dec 18 522-6s +2-0 +0.38%

Wheat Mar 19 541-0s +2-4 +0.46%

 

Minneapolis

Spring Wheat May 18 612-4s +5-6 +0.95%

Spring Wheat Jul 18 621-2s +5-0 +0.81%

Spring Wheat Sep 18 625-6s +5-2 +0.85%

Spring Wheat Dec 18 634-2s +4-0 +0.63%

Spring Wheat Mar 19 640-4s +1-4 +0.23%

 

Kansas City

Hard Red Wheat May 18 480-4s +2-4 +0.52%

Hard Red Wheat Jul 18 499-4s +2-4 +0.50%

Hard Red Wheat Sep 18 519-4s +2-0 +0.39%

Hard Red Wheat Dec 18 546-4s +2-2 +0.41%

Hard Red Wheat Mar 19 564-2s +2-4 +0.45%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 18 118.050s +0.900 +0.77%

Live Cattle Jun 18 104.900s +0.725 +0.70%

Live Cattle Aug 18 104.450s +0.250 +0.24%

 

Feeder Cattle Apr 18 138.725s -0.500 -0.36%

Feeder Cattle May 18 140.250s -0.125 -0.09%

Feeder Cattle Aug 18 145.075s +0.300 +0.21%

 

Lean Hogs May 18 67.900s -0.275 -0.40%

Lean Hogs Jun 18 76.750s -0.050 -0.07%

Lean Hogs Jul 18 79.225s +0.550 +0.70%

 

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

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