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Canola retreats from gains

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were narrowly mixed at Friday’s close, retreating from earlier gains with losses in the nearby July contract and strength in the new crop months.

Positioning ahead of the long weekend was a feature, as Canadian markets will be closed for Victoria Day on Monday while markets remain open in the United States.

Ideas that trade tensions between the U.S. and China were easing somewhat gave the grains and oilseeds in Chicago a boost, as China announced it was dropping an anti-dumping probe into U.S. sorghum. While some of that buying interest spilled over to support canola, the reduced likelihood of Chinese soybean demand shifting to Canadian canola was also somewhat bearish.

Parts of Western Canada were receiving much needed rain on Friday, putting some pressure on canola. However, more moisture will be needed in many locations.

About 14,400 canola contracts traded, which compares with Thursday when 13,356 contracts changed hands. Spreading accounted for 4,884 of the contracts traded.

SOYBEANS were higher in the most active months, as renewed optimism on trade relations between the United States and China provided support.

Concerns over seeding delays in parts of the Midwest due to excess moisture were also supportive.

However, the U.S. Department of Agriculture announced cancellations of nearly a million tonnes of previously reported soy business this morning, which put some pressure on values.

U.S. lawmakers failed to pass the country’s latest farm bill on Friday, as its passage became tied up in a dispute between Republican factions over immigration reform.

CORN futures were stronger, with China’s move to back down on sorghum tariffs the major supportive influence. A rally in wheat also provided some spillover support.

Concerns over seeding delays in some parts of the Midwest also underpinned the futures, with chart-based buying another supportive influence as the nearby July contract moved back above the psychological four dollar mark.

WHEAT futures were higher across the board, with Kansas City hard red winter wheat leading to the upside as the latest forecasts look dry for much of the southern U.S. Plains.

A number of other major wheat growing regions of the world are also dealing with dryness, including Australia.

Spring wheat seeding is reportedly moving forward at a brisk pace in the northern U.S., with about 80 to 90 percent of the crop likely in the ground by this weekend.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 21 cents at US$71.28 per barrel.

In the afternoon, the Canadian dollar was trading around US77.26 cents, sown from 78.07 cents the previous trading day. The U.S. dollar was C$1.2943.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 18 532.40s -0.20 -0.04%

Canola Nov 18 518.80s +1.90 +0.37%

Canola Jan 19 523.20s +1.60 +0.31%

Canola Mar 19 525.20s +1.10 +0.21%

Canola May 19 526.40s +1.10 +0.21%

 

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 Jul 18 998-4s +3-4 +0.35%

Soybeans Aug 18 1002-4s +3-6 +0.38%

Soybeans Sep 18 1004-4s +3-4 +0.35%

Soybeans Nov 18 1008-2s +4-0 +0.40%

Soybeans Jan 19 1012-2s +3-6 +0.37%

 

Soybean Meal Jul 18 376.3s +1.2 +0.32%

Soybean Meal Aug 18 374.5s +1.0 +0.27%

Soybean Meal Sep 18 372.1s +0.5 +0.13%

 

Soybean Oil Jul 18 30.98s +0.04 +0.13%

Soybean Oil Aug 18 31.09s +0.03 +0.10%

Soybean Oil Sep 18 31.24s +0.04 +0.13%

 

Corn Jul 18 402-4s +7-2 +1.83%

Corn Sep 18 411-0s +7-4 +1.86%

Corn Dec 18 420-2s +7-2 +1.76%

Corn Mar 19 428-2s +6-4 +1.54%

Corn May 19 432-6s +6-0 +1.41%

 

Oats Jul 18 242-0s +1-0 +0.41%

Oats Sep 18 247-0s +1-0 +0.41%

Oats Dec 18 256-0s +0-4 +0.20%

Oats Mar 19 261-4s +0-4 +0.19%

Oats May 19 264-4s +0-2 +0.09%

 

Wheat Jul 18 518-2s +20-6 +4.17%

Wheat Sep 18 534-0s +20-4 +3.99%

Wheat Dec 18 554-6s +20-0 +3.74%

Wheat Mar 19 572-4s +19-6 +3.57%

Wheat May 19 581-6s +19-0 +3.38%

 

Minneapolis

Spring Wheat Jul 18 629-0s +14-2 +2.32%

Spring Wheat Sep 18 633-2s +12-6 +2.05%

Spring Wheat Dec 18 641-6s +12-2 +1.95%

Spring Wheat Mar 19 650-0s +10-2 +1.60%

Spring Wheat May 19 656-4s +9-6 +1.51%

 

Kansas City

Hard Red Wheat Jul 18 538-6s +19-6 +3.81%

Hard Red Wheat Sep 18 557-4s +19-6 +3.67%

Hard Red Wheat Dec 18 582-6s +19-2 +3.42%

Hard Red Wheat Mar 19 600-0s +19-0 +3.27%

Hard Red Wheat May 19 609-4s +18-6 +3.17%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 18 102.400s -0.650 -0.63%

Live Cattle Aug 18 98.225s -0.875 -0.88%

Live Cattle Oct 18 101.700s -0.600 -0.59%

 

Feeder Cattle May 18 132.225s -0.875 -0.66%

Feeder Cattle Aug 18 137.625s -1.100 -0.79%

Feeder Cattle Sep 18 137.800s -1.275 -0.92%

 

Lean Hogs Jun 18 74.700s -1.775 -2.32%

Lean Hogs Jul 18 77.250s -0.950 -1.21%

Lean Hogs Aug 18 76.625s -1.000 -1.29%

 

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

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