Canola mixed on effects of several issues

Winnipeg – ICE Futures canola contracts settled mixed on Tuesday, with gains in the most active contracts as early selling pressure subsided by the close.

Losses in the Chicago Board of Trade soy complex accounted some spillover selling pressure throughout the day in canola, with the Canadian dollar holding steady after its recent rally.

A lack of significant end user demand and ample visible supplies also weighed on values, according to participants.

However, canola managed to find some support late in the day, with chart-based short-covering and positioning relative to soybeans providing some support.

News that China had approved two varieties of genetically modified canola for import was also supportive, as the approval opens the door for the traits to be grown in the Canadian Prairies.

About 8,645 canola contracts traded on Tuesday, which compares with Monday when 14,696 contracts changed hands. Spreading accounted for 3,252 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were lower on Tuesday, with chart-based profit-taking accounting for some of the selling pressure.

While optimism over trade talks with China and possible fresh sales remained supportive, any confirmation of fresh business was lacking with the United States government still shutdown mode.

Updated supply/demand data was due to be released on Friday, Jan. 11, but the U.S. Department of Agriculture reports are now delayed indefinitely.

Weather concerns in parts of Brazil were somewhat supportive for soybeans, while increased European demand for U.S. soybeans also underpinned the futures.

Brazil’s CONAB will release its own estimates on the size of that country’s crops on Thursday.

CORN futures were softer on the day, following soybeans. Recent weakness in the ethanol sector also weighed on the energy-linked grain.

Uncertainty over the trade negotiations with China kept some caution in the market, although today’s news did include reports that China had approved a genetically modified variety of corn for import. Two canola traits and two soybean traits were also approved.

WHEAT futures were mixed, with losses in Minneapolis spring wheat and gains in the winter wheats. U.S. wheat is thought to be looking more attractively priced on the global export market, which was slightly supportive.

Average trade guesses expect U.S. winter wheat seedings this fall were down from the year ago. However, the USDA’s report that had been set for release on Friday is delayed due to the shutdown.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up $1.26 at US$49.78 per barrel.

In the afternoon, the Canadian dollar was trading around US75.23 cents, up from 75.11 cents the previous trading day. The U.S. dollar was C$1.3293.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 19 484.30s +2.90 +0.60%

Canola Mar 19 485.40s +0.30 +0.06%

Canola May 19 493.90s +0.20 +0.04%

Canola Jul 19 501.20s -0.50 -0.10%

Canola Nov 19 498.60s -0.80 -0.16%

 

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 Jan 19 906-2s -6-0 -0.66%

Soybeans Mar 19 918-4s -5-6 -0.62%

Soybeans May 19 931-6s -5-2 -0.56%

Soybeans Jul 19 943-4s -5-2 -0.55%

Soybeans Aug 19 948-2s -5-0 -0.52%

 

Soybean Meal Jan 19 317.6s -0.6 -0.19%

Soybean Meal Mar 19 321.6s -0.6 -0.19%

Soybean Meal May 19 325.1s -0.4 -0.12%

 

Soybean Oil Jan 19 28.18s -0.08 -0.28%

Soybean Oil Mar 19 28.43s -0.08 -0.28%

Soybean Oil May 19 28.69s -0.09 -0.31%

 

Corn Mar 19 380-0s -2-2 -0.59%

Corn May 19 388-0s -2-2 -0.58%

Corn Jul 19 395-6s -1-6 -0.44%

Corn Sep 19 398-4s -1-2 -0.31%

Corn Dec 19 402-6s -1-0 -0.25%

 

Oats Mar 19 282-6s +3-2 +1.16%

Oats May 19 278-6s +2-6 +1.00%

Oats Jul 19 280-2s +2-2 +0.81%

Oats Sep 19 273-6s +4-6 +1.77%

Oats Dec 19 269-6s +3-6 +1.41%

 

Wheat Mar 19 517-6s +1-0 +0.19%

Wheat May 19 523-4s +2-0 +0.38%

Wheat Jul 19 529-0s +2-0 +0.38%

Wheat Sep 19 537-4s +2-0 +0.37%

Wheat Dec 19 551-4s +2-4 +0.46%

 

Minneapolis

Spring Wheat Mar 19 567-2s -0-6 -0.13%

Spring Wheat May 19 573-0s -0-2 -0.04%

Spring Wheat Jul 19 580-0s +0-2 +0.04%

Spring Wheat Sep 19 587-2s unch unch

Spring Wheat Dec 19 600-2s -0-2 -0.04%

 

Kansas City

Hard Red Wheat Mar 19 505-0s +2-0 +0.40%

Hard Red Wheat May 19 516-6s +2-2 +0.44%

Hard Red Wheat Jul 19 527-0s +2-0 +0.38%

Hard Red Wheat Sep 19 539-4s +2-2 +0.42%

Hard Red Wheat Dec 19 556-2s +2-2 +0.41%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 19 125.300s +2.100 +1.70%

Live Cattle Apr 19 126.150s +1.075 +0.86%

Live Cattle Jun 19 117.475s +0.950 +0.82%

 

Feeder Cattle Jan 19 147.625s +1.625 +1.11%

Feeder Cattle Mar 19 145.450s +1.550 +1.08%

Feeder Cattle Apr 19 146.100s +1.400 +0.97%

 

Lean Hogs Feb 19 62.600s +0.700 +1.13%

Lean Hogs Apr 19 66.025s -0.350 -0.53%

Lean Hogs May 19 72.950s +0.025 +0.03%

 

About the author

Phil Franz-Warkentin - MarketsFarm's recent articles

Comments

Markets at a glance

Copyright © 2019. All market data is provided by Barchart Market Data Solutions. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

explore

Stories from our other publications