Winnipeg – ICE Futures canola contracts were narrowly mixed on Wednesday, with losses in the front months and gains in the new crop contracts.
Adjustments to the intermonth spreads were a feature of the activity. The July/November spread moved from an inverse to a carry position.
Large old crop supplies and a lack of significant end user demand accounted for some of the weakness in the front months, according to participants.
Losses in Chicago Board of Trade soyoil also put some spillover pressure on values.
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However, chart support held to the downside, as the March contract tested below C$480 per tonne but managed to close above that level.
About 32,283 canola contracts traded on Wednesday, which compares with Tuesday when 31,361 contracts changed hands. Spreading accounted for 31,070 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved to both sides of unchanged on Wednesday, settling with small losses.
Trade talks between the United States and China in Beijing this week were bringing some optimism to the soy market. However, the two countries have yet to reach a deal, and are unlikely to do so this week.
The advancing harvest in Brazil also weighed on values, especially as the latest weather forecasts were looking relatively favourable.
Recent rains in Brazil have helped alleviate some of the dryness concerns there, while wet areas of Argentina are reportedly drying out.
Brazil’s Conab released its latest production estimates, pegging the country’s soybean crop at 115.3 million tonnes. That was down by 3.5 million from an earlier estimate and also below the U.S. Department of Agriculture’s forecast of 117 million tonnes.
CORN held steady on the day, as the market continues to look for some direction.
While the improving South American weather conditions weighed on values, strength in crude oil and the optimism on the Chinese trade front were a bit supportive.
WHEAT futures were higher on the day as improving export sentiment provided some support.
U.S. wheat is looking more attractively priced on the global market, and traders had their eyes on a number of international tenders as they waited to see if any U.S. wheat was bought.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up 80 cents at US$53.90 per barrel.
In the afternoon, the Canadian dollar was trading around US75.53 cents, down from 75.48 cents the previous trading day. The U.S. dollar was C$1.3240.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 19 480.80s -0.40 -0.08%
Canola May 19 489.40s -0.20 -0.04%
Canola Jul 19 497.20s -0.30 -0.06%
Canola Nov 19 498.10s +0.60 +0.12%
Canola Jan 20 503.10s +0.60 +0.12%
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 19 916-4s -1-0 -0.11%
Soybean May 19 930-6s -1-0 -0.11%
Soybean Jul 19 943-6s -1-2 -0.13%
Soybean Aug 19 949-2s -1-0 -0.11%
Soybean Sep 19 951-4s -1-2 -0.13%
Soybean Meal Mar 19 310.1s +0.9 +0.29%
Soybean Meal May 19 314.2s +1.0 +0.32%
Soybean Meal Jul 19 318.1s +0.8 +0.25%
Soybean Oil Mar 19 29.99s -0.34 -1.12%
Soybean Oil May 19 30.34s -0.33 -1.08%
Soybean Oil Jul 19 30.68s -0.31 -1.00%
Corn Mar 19 378-6s +0-4 +0.13%
Corn May 19 386-6s +0-4 +0.13%
Corn Jul 19 394-4s +0-6 +0.19%
Corn Sep 19 397-2s +0-4 +0.13%
Corn Dec 19 402-4s +0-4 +0.12%
Oats Mar 19 281-6s -5-2 -1.83%
Oats May 19 285-2s -4-2 -1.47%
Oats Jul 19 283-4s -3-4 -1.22%
Oats Sep 19 274-4s -3-0 -1.08%
Oats Dec 19 268-6s -1-6 -0.65%
Wheat Mar 19 522-2s +2-2 +0.43%
Wheat May 19 526-0s +4-2 +0.81%
Wheat Jul 19 526-4s +4-4 +0.86%
Wheat Sep 19 534-4s +4-2 +0.80%
Wheat Dec 19 547-4s +3-2 +0.60%
Minneapolis
Spring Wheat Mar 19 579-6s +2-4 +0.43%
Spring Wheat May 19 573-2s +1-6 +0.31%
Spring Wheat Jul 19 578-0s +1-6 +0.30%
Spring Wheat Sep 19 584-0s +3-0 +0.52%
Spring Wheat Dec 19 596-0s +4-2 +0.72%
Kansas City
Hard Red Wheat Mar 19 494-0s +2-0 +0.41%
Hard Red Wheat May 19 500-4s +3-4 +0.70%
Hard Red Wheat Jul 19 507-0s +3-2 +0.65%
Hard Red Wheat Sep 19 517-6s +3-2 +0.63%
Hard Red Wheat Dec 19 535-0s +2-6 +0.52%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 19 125.950s -0.875 -0.69%
Live Cattle Apr 19 126.975s -0.900 -0.70%
Live Cattle Jun 19 117.800s -0.350 -0.30%
Feeder Cattle Mar 19 143.525s -0.875 -0.61%
Feeder Cattle Apr 19 146.075s -0.575 -0.39%
Feeder Cattle May 19 147.250s -0.425 -0.29%
Lean Hogs Feb 19 55.150s -0.025 -0.05%
Lean Hogs Apr 19 59.775s -0.550 -0.91%
Lean Hogs May 19 68.675s -0.200 -0.29%
