Canola picks up gains amid market turmoil

 

Winnipeg, MB, (CNS Canada) – The ICE Futures Canada canola posted gains to finish the week, taking support from the Canadian currency. The Canadian dollar was lower, relative to its U.S. counterpart, which made canola more attractive to international buyers.

Gains in U.S. soybeans were supportive for the market.

A proposal by U.S. President Donald Trump to impose tariffs on steel and aluminum created turmoil in international markets Friday and raised ideas China could eventually retaliate with penalties of their own on agriculture.

“Canada could possibly benefit from that,” noted a trader in Winnipeg.

Traders were positioning themselves ahead of the weekend. Next week the USDA is set to release its monthly supply and demand estimates, while a major biofuel meeting is taking place in the U.S.

However, losses in U.S. soyoil weighed on the market.

Precipitation fell in some parts of Alberta this week and moisture is expected in Manitoba this weekend, which should help improve soil-moisture levels.

Around 18,726 canola contracts were traded on Friday, which compares with Thursday when around 17,896 contracts changed hands. Spreading accounted for 5,882 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

The soybean market finished higher on Friday due to speculative trading and strength in soymeal.

The USDA reported a sale of nearly 200,000 tonnes of soybeans to China.

The Buenos Aires grain exchange has lowered its prediction for the size of this year’s crop in Argentina from 47 million tonnes to 44 million.

Corn futures ticked slightly lower in technical trading.

Crop conditions ratings in Argentina are steadily creeping lower due to the drought.

Parts of the eastern Midwest are expected to receive more rain this weekend, which could hamper barge traffic.

Chicago wheat futures suffered large losses on Friday to end the week as traders took profits.

Chicago wheat had gone higher for six days and was at its highest point in over half a year, prompting investors to square positions.

Rain is expected to fall in the U.S. Plains late next week.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 26 cents at US$61.25 per barrel.

In the afternoon, the Canadian dollar was trading around US77.60 cents, down from 78.01 cents the previous trading day. The U.S. dollar was C$1.2887.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 18 523.50s +1.90 +0.36%

Canola May 18 527.10s +1.90 +0.36%

Canola Jul 18 531.80s +1.70 +0.32%

Canola Nov 18 517.40s +0.40 +0.08%

Canola Jan 19 521.70s unch unch

 

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 1060-6s +3-2 +0.31%

Soybeans May 18 1071-0s +3-0 +0.28%

Soybeans Jul 18 1079-2s +2-6 +0.26%

Soybeans Aug 18 1076-4s +2-6 +0.26%

Soybeans Sep 18 1053-6s +1-0 +0.09%

 

Soybean Meal Mar 18 390.2s -3.8 -0.96%

Soybean Meal May 18 392.9s -4.3 -1.08%

Soybean Meal Jul 18 390.4s -3.7 -0.94%

 

Soybean Oil Mar 18 32.06s -0.06 -0.19%

Soybean Oil May 18 32.30s -0.09 -0.28%

Soybean Oil Jul 18 32.49s -0.10 -0.31%

 

Corn Mar 18 377-2s -1-4 -0.40%

Corn May 18 385-2s -1-0 -0.26%

Corn Jul 18 392-4s -1-0 -0.25%

Corn Sep 18 397-6s -1-0 -0.25%

Corn Dec 18 404-2s -0-4 -0.12%

 

Oats Mar 18 265-0s -4-0 -1.49%

Oats May 18 268-4s -5-0 -1.83%

Oats Jul 18 270-0s -3-6 -1.37%

Oats Sep 18 265-6s -3-4 -1.30%

Oats Dec 18 263-2s -3-4 -1.31%

 

Wheat Mar 18 492-0s -13-4 -2.67%

Wheat May 18 500-0s -15-4 -3.01%

Wheat Jul 18 514-4s -14-0 -2.65%

Wheat Sep 18 528-6s -13-0 -2.40%

Wheat Dec 18 547-0s -12-6 -2.28%

 

Minneapolis

Spring Wheat Mar 18 606-4s -13-4 -2.18%

Spring Wheat May 18 620-2s -14-4 -2.28%

Spring Wheat Jul 18 627-6s -13-6 -2.14%

Spring Wheat Sep 18 634-2s -12-2 -1.89%

Spring Wheat Dec 18 641-6s -11-0 -1.69%

 

Kansas City

Hard Red Wheat Mar 18 522-0s -9-0 -1.69%

Hard Red Wheat May 18 533-6s -9-6 -1.79%

Hard Red Wheat Jul 18 550-2s -9-6 -1.74%

Hard Red Wheat Sep 18 566-0s -9-6 -1.69%

Hard Red Wheat Dec 18 584-4s -9-2 -1.56%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 18 122.175s -1.150 -0.93%

Live Cattle Jun 18 114.400s -1.100 -0.95%

Live Cattle Aug 18 112.100s -0.875 -0.77%

 

Feeder Cattle Mar 18 143.675s -1.375 -0.95%

Feeder Cattle Apr 18 145.275s -1.475 -1.01%

Feeder Cattle May 18 146.525s -1.475 -1.00%

 

Lean Hogs Apr 18 67.575s +0.600 +0.90%

Lean Hogs May 18 74.650s +0.100 +0.13%

Lean Hogs Jun 18 79.750s -0.325 -0.41%

 

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