Winnipeg (CNS Canada) – ICE Futures Canada canola contracts settled with small gains on Friday, recovering from earlier losses as speculative buying interest provided support.
After drifting lower with Chicago Board of Trade soybeans and soyoil in early activity, canola uncovered some support of its own and moved above unchanged in the most active front months.
Concerns over a mounting trade dispute between China and the United States accounted for much of the weakness in soybeans throughout the day. However, any disruptions in U.S. soybean sales to China could open the door for other suppliers, including Canadian canola.
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U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
Large old crop canola stocks, expectations for increased seeded acres this spring, and a firmer tone in the Canadian dollar all served to temper the upside in the futures.
About 16,559 canola contracts traded on Friday, which compares with Thursday when 9,047 contracts changed hands. Spreading accounted for 8,144 of the contracts traded.
SOYBEAN futures settled with small losses in the most active months, pressured by the mounting trade dispute between China and the U.S.
While the Chinese tariffs announced overnight did not specifically include soybeans, traders were still concerned that the dispute between the two countries will escalate with grains and oilseeds a likely target.
Weekly soybean sales of about 900,000 tonnes for old and new crop combined, were reported by the U.S. Department of Agriculture.
Positioning ahead of next week’s acreage report was also a feature, with expectations for record large U.S. soybean plantings this spring.
Dryness concerns in Argentina remained supportive for soybeans. However, the production issues there have largely been priced into the market for the time being.
CORN posted small gains at the close, as the market recovered from earlier losses. Weekly U.S. corn export sales were solid at 1.5 million tonnes, but at the low end of trade guesses.
Expectations for smaller U.S. corn acres this spring, as some area swings into soybeans, provided support.
However, China’s tariffs on U.S. pork spilled into the feed sector and put some pressure on values.
WHEAT futures ended higher, recovering from earlier losses.
The latest weather models are showing less moisture for the dry U.S. Plains over the next week than earlier thought, which provided some support.
Weekly wheat exports of about 400,000 tonnes for old and new crop combined were in line with expectations.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were at US$65.53 per barrel, down 21 cents from the previous day.
In the afternoon, the Canadian dollar was up .21 cents trading around US$77.82 cents. The U.S. dollar was C$1.2800, down .01 cents from the previous day.
Winnipeg ICE Futures Canada dollars per tonne.
Canola May 18 520.60s +1.50 +0.29%
Canola Jul 18 525.70s +1.60 +0.31%
Canola Nov 18 515.00s +1.10 +0.21%
Canola Jan 19 518.90s +0.70 +0.14%
Canola Mar 19 521.00s +1.00 +0.19%
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 May 18 1028-2s -1-4 -0.15%
Soybeans Jul 18 1039-2s -1-4 -0.14%
Soybeans Aug 18 1041-2s -1-2 -0.12%
Soybeans Sep 18 1031-4s +0-4 +0.05%
Soybeans Nov 18 1026-4s -0-2 -0.02%
Soybean Meal May 18 377.9s +9.9 +2.69%
Soybean Meal Jul 18 380.0s +9.6 +2.59%
Soybean Meal Aug 18 376.9s +8.8 +2.39%
Soybean Oil May 18 31.42s -0.46 -1.44%
Soybean Oil Jul 18 31.67s -0.45 -1.40%
Soybean Oil Aug 18 31.78s -0.46 -1.43%
Corn May 18 377-2s +1-2 +0.33%
Corn Jul 18 385-6s +1-4 +0.39%
Corn Sep 18 392-0s +1-4 +0.38%
Corn Dec 18 399-2s +1-2 +0.31%
Corn Mar 19 406-4s +1-2 +0.31%
Oats May 18 226-2s -2-4 -1.09%
Oats Jul 18 235-2s -1-6 -0.74%
Oats Sep 18 242-6s -0-2 -0.10%
Oats Dec 18 251-4s +0-4 +0.20%
Oats Mar 19 257-4s +0-4 +0.19%
Wheat May 18 460-2s +4-4 +0.99%
Wheat Jul 18 476-4s +4-4 +0.95%
Wheat Sep 18 492-4s +4-4 +0.92%
Wheat Dec 18 513-6s +4-4 +0.88%
Wheat Mar 19 530-6s +4-2 +0.81%
Minneapolis
Spring Wheat May 18 602-6s +9-6 +1.64%
Spring Wheat Jul 18 609-2s +7-6 +1.29%
Spring Wheat Sep 18 615-0s +6-6 +1.11%
Spring Wheat Dec 18 625-2s +4-4 +0.72%
Spring Wheat Mar 19 633-2s +3-6 +0.60%
Kansas City
Hard Red Wheat May 18 479-2s +8-2 +1.75%
Hard Red Wheat Jul 18 498-2s +8-2 +1.68%
Hard Red Wheat Sep 18 516-4s +8-2 +1.62%
Hard Red Wheat Dec 18 539-4s +8-6 +1.65%
Hard Red Wheat Mar 19 554-0s +8-6 +1.60%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle (Pit) Apr 18 116.050s -2.100 -1.78%
Live Cattle (Pit) Jun 18 106.200s -2.200 -2.03%
Live Cattle (Pit) Aug 18 104.950s -1.425 -1.34%
Feeder Cattle (Pit) Mar 18 135.700s -1.825 -1.33%
Feeder Cattle (Pit) Apr 18 136.100s -1.925 -1.39%
Feeder Cattle (Pit) May 18 137.300s -1.225 -0.88%
Lean Hogs (Pit) Apr 18 58.425s -2.900 -4.73%
Lean Hogs (Pit) May 18 65.225s -2.925 -4.29%
Lean Hogs (Pit) Jun 18 74.150s -1.325 -1.76%
