Canola mixed at close

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were narrowly mixed at Tuesday’s close, backing away from earlier gains in the final minutes of trade.

Gains in Chicago Board of Trade soybeans and soymeal futures provided spillover support for most of the day. Declining production prospects out of Argentina were especially supportive for CBOT soymeal futures given concerns over tightening supplies of the protein-rich livestock feed. However, canola usually tracks soyoil more closely than soymeal, and losses in that market tempered the upside in the Canadian oilseed and contributed to the late selloff.

Farmer selling also came forward at the highs to weigh on values, according to a trader.

About 31,459 canola contracts traded on Tuesday, which compares with Monday when 24,034 contracts changed hands. Spreading accounted for 21,510 of the contracts traded.

SOYBEANS
Soybean futures at the Chicago Board of Trade were up Tuesday, seeing some follow-through buying after yesterday’s rally.

Hot and dry weather conditions are forecast to continue to cause problems for soybeans in Argentina this week, with private forecasters lowering their production estimates.

Argentina is a major soymeal exporter, and concerns over the supply situation for the livestock feed and resulting rally in the futures pulled beans up as well.

Supportive technical signals contributed to the gains, as the March contract broke above the psychological US$10 per bushel mark yesterday.

However, profit taking at the highs did put some pressure on values. Relatively favourable Brazilian production prospects also limited the upside in soybeans.

CORN

Corn futures were steady to slightly lower at the close. Corn briefly climbed higher in sympathy with soybeans, but ran into resistance at the highs as traders took profits and the recent strength in the market also brought in more farmer selling.

Losses in wheat were also bearish for corn.

WHEAT
After posting solid gains yesterday, wheat was due for a bit of a profit-taking correction. Forecasts calling for some welcome moisture in parts of the Southern US Plains also weighed on prices.

However, conditions remain dry for the most part, which kept some caution in the futures.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 10 cents at US$59.19 per barrel.

In the afternoon, the Canadian dollar was trading around US79.39 cents, down from 79.48 cents the previous trading day. The U.S. dollar was C$1.2582.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 18 503.90s +0.60 +0.12%

Canola May 18 509.00s unch unch

Canola Jul 18 512.90s -0.70 -0.14%

Canola Nov 18 507.60s +0.40 +0.08%

Canola Jan 19 512.00s +0.40 +0.08%

 

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 Mar 18 1011-6s +10-0 +1.00%

Soybeans May 18 1022-2s +9-6 +0.96%

Soybeans Jul 18 1032-0s +10-0 +0.98%

Soybeans Aug 18 1033-4s +10-0 +0.98%

Soybeans Sep 18 1023-6s +7-0 +0.69%

 

Soybean Meal Mar 18 365.2s +7.4 +2.07%

Soybean Meal May 18 366.7s +6.3 +1.75%

Soybean Meal Jul 18 366.0s +5.2 +1.44%

 

Soybean Oil Mar 18 31.57s -0.28 -0.88%

Soybean Oil May 18 31.78s -0.27 -0.84%

Soybean Oil Jul 18 32.00s -0.24 -0.74%

 

Corn Mar 18 366-6s -0-2 -0.07%

Corn May 18 374-2s -0-4 -0.13%

Corn Jul 18 382-0s -0-4 -0.13%

Corn Sep 18 388-4s -0-6 -0.19%

Corn Dec 18 396-0s -1-0 -0.25%

 

Oats Mar 18 273-4s -1-4 -0.55%

Oats May 18 273-2s -0-6 -0.27%

Oats Jul 18 270-2s -2-2 -0.83%

Oats Sep 18 268-6s -2-4 -0.92%

Oats Dec 18 267-2s +0-2 +0.09%

 

Wheat Mar 18 460-6s -3-2 -0.70%

Wheat May 18 473-6s -2-2 -0.47%

Wheat Jul 18 487-4s -2-0 -0.41%

Wheat Sep 18 502-2s -2-0 -0.40%

Wheat Dec 18 522-2s -1-6 -0.33%

 

Minneapolis

Spring Wheat Mar 18 601-6s -8-2 -1.35%

Spring Wheat May 18 614-6s -7-6 -1.24%

Spring Wheat Jul 18 624-2s -7-2 -1.15%

Spring Wheat Sep 18 632-0s -4-6 -0.75%

Spring Wheat Dec 18 640-2s -1-0 -0.16%

 

Kansas City

Hard Red Wheat Mar 18 474-4s -3-0 -0.63%

Hard Red Wheat May 18 489-2s -3-4 -0.71%

Hard Red Wheat Jul 18 506-6s -3-2 -0.64%

Hard Red Wheat Sep 18 524-2s -3-0 -0.57%

Hard Red Wheat Dec 18 545-6s -2-4 -0.46%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 18 126.825s -0.300 -0.24%

Live Cattle Apr 18 124.775s -0.225 -0.18%

Live Cattle Jun 18 116.650s -0.075 -0.06%

 

Feeder Cattle Mar 18 147.275s -0.400 -0.27%

Feeder Cattle Apr 18 149.500s -0.025 -0.02%

Feeder Cattle May 18 150.325s +0.175 +0.12%

 

Lean Hogs Feb 18 73.350s +0.275 +0.38%

Lean Hogs Apr 18 69.425s -1.100 -1.56%

Lean Hogs May 18 75.125s -0.925 -1.22%

 

About the author

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

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