Canola rebounds on weaker dollar

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished stronger on Tuesday, making up for losses incurred during the previous trading session.

A weaker Canadian dollar was supportive of canola prices. At midday, the dollar slipped just below 77 U.S. cents, due to a comparably stronger U.S. dollar and weakness in crude oil values.

Despite a bias to the upside, canola prices have remained largely locked in a consolidation pattern. One trader said some producers may be holding on to inventory until prices improve.

On Tuesday, 19,204 contracts were traded, which compares with Monday when 22,025 contracts changed hands. Spreading accounted for 14,268 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were mixed on Tuesday, staying relatively competitive in comparison to other vegetable oils.

South American soybean growing conditions have improved recently, and are favourable for crop development. Some private estimates are calling for record large soy production in the region this year. However, traders are still watching for dry conditions in some growing regions.

India has informally asked palm oil refiners to avoid buying Malaysian palm oil following Malaysian criticism of India’s new citizenship laws. As the world’s biggest buyer of palm oil, inventories could spike in Malaysia, putting pressure on prices.

CORN futures finished slightly lower today. One private company has lowered their estimate for Brazil’s corn production, due to challenging growing conditions. Parts of Brazil received excessive rains in November, which delayed planting. Hot and dry growing conditions in December have negatively impacted crops as well. Corn production estimates have been lowered by a million tonnes to total 100 million.

However, estimates for Argentina’s corn crop remain at 47.5 million tonnes.

WHEAT futures were mixed on Tuesday. Wheat shipments from the U.S. totalled 1.89 million bushels in November, which was a 15.5 per cent decrease from October. However, wheat shipments are 10 per cent higher on the year compared to the same time in the previous marketing year.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 57 cents at US$62.70 per barrel.

In the afternoon, the Canadian dollar was trading around US76.87 cents, down from 77.10 cents the previous trading day. The U.S. dollar was C$1.3007.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 20 471.20s +2.50 +0.53%

Canola Mar 20 479.70s +2.50 +0.52%

Canola May 20 488.60s +2.40 +0.49%

Canola Jul 20 493.80s +2.00 +0.41%

Canola Nov 20 496.50s +1.60 +0.32%

 

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 Jan 20 935-0s +2-2 +0.24%

Soybean Mar 20 944-0s -0-6 -0.08%

Soybean May 20 957-2s -1-0 -0.10%

Soybean Jul 20 969-4s -1-0 -0.10%

Soybean Aug 20 973-2s -1-2 -0.13%

 

Soybean Meal Jan 20 296.4s -1.3 -0.44%

Soybean Meal Mar 20 301.3s -1.6 -0.53%

Soybean Meal May 20 305.5s -1.4 -0.46%

 

Soybean Oil Jan 20 34.46s +0.22 +0.64%

Soybean Oil Mar 20 34.74s +0.22 +0.64%

Soybean Oil May 20 35.04s +0.21 +0.60%

 

Corn Mar 20 384-4s -0-2 -0.06%

Corn May 20 391-4s unch unch

Corn Jul 20 397-6s -0-2 -0.06%

Corn Sep 20 397-2s -0-2 -0.06%

Corn Dec 20 400-0s unch unch

 

Oats Mar 20 293-2s -1-0 -0.34%

Oats May 20 289-6s -1-4 -0.52%

Oats Jul 20 285-0s -0-6 -0.26%

Oats Sep 20 273-4s -1-6 -0.64%

Oats Dec 20 267-4s -1-0 -0.37%

 

Wheat Mar 20 550-2s +0-2 +0.05%

Wheat May 20 553-2s -0-4 -0.09%

Wheat Jul 20 556-2s -0-6 -0.13%

Wheat Sep 20 563-0s -0-6 -0.13%

Wheat Dec 20 573-0s -0-4 -0.09%

 

Minneapolis

Spring Wheat Mar 20 546-6s -1-2 -0.23%

Spring Wheat May 20 556-0s -1-4 -0.27%

Spring Wheat Jul 20 563-4s -1-4 -0.27%

Spring Wheat Sep 20 571-6s -1-2 -0.22%

Spring Wheat Dec 20 583-4s -2-0 -0.34%

 

Kansas City

Hard Red Wheat Mar 20 475-0s -2-2 -0.47%

Hard Red Wheat May 20 483-0s -2-2 -0.46%

Hard Red Wheat Jul 20 490-6s -1-6 -0.36%

Hard Red Wheat Sep 20 498-6s -1-0 -0.20%

Hard Red Wheat Dec 20 509-6s -0-6 -0.15%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 20 126.525s -0.750 -0.59%

Live Cattle Apr 20 127.375s -0.725 -0.57%

Live Cattle Jun 20 118.975s -0.475 -0.40%

 

Feeder Cattle Jan 20 145.900s -1.525 -1.03%

Feeder Cattle Mar 20 145.125s -1.225 -0.84%

Feeder Cattle Apr 20 147.800s -0.925 -0.62%

 

Lean Hogs Feb 20 69.225s +0.600 +0.87%

Lean Hogs Apr 20 75.750s +0.800 +1.07%

Lean Hogs May 20 82.125s +0.675 +0.83%

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