Winnipeg, Jan. 18 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Thursday, taking some direction from soybeans at the Chicago Board of Trade.
A lack of significant farmer selling contributed to the gains, according to traders, with many producers thought to be holding out for higher prices for the time being.
Concerns over a lack of moisture across much of Western Canada were also a bit supportive as spring seeding draws nearer.
However, a generally bearish technical outlook tempered the upside, with any advances seen as a good selling opportunity as fund traders add to their net short positions of about 20,000 contracts.
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Feed Grains Weekly: Price likely to keep stepping back
As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
Losses in CBOT soyoil and declining crush margins also put some pressure on values.
About 11,151 canola contracts traded on Thursday, which compares with Wednesday when 19,364 contracts changed hands. Spreading accounted for 6,890 of the contracts traded.
Shifting weather reports out of South America provided some underlying support for soybeans at the Chicago Board of Trade on Thursday. While rain is in the forecasts for some dry areas of Argentina, temperatures remain hot and more moisture will likely be needed.
Slow selling out of Brazil, as farmers there hold out for better prices, was also supportive.
However, continued weakness in the global vegetable oil markets, including palm oil and soyoil, kept a lid on soybeans.
Corn futures were down on Thursday, as speculators moved to the sell side and the market saw a modest correction after hitting its best levels in two weeks yesterday. Increased farmer selling added to the declines.
Wheat futures were mixed, with gains in the Chicago and Kansas City contracts, and a softer tone in Minneapolis spring wheat.
Speculative short-covering was supportive, while the recent weakness in wheat has also brought in more export demand.
The International Grains Council raised its estimate for world grain production this year to 2.1 billion tonnes, due to better wheat crops in both Russia and Argentina. However, production is still expected to be down from last year’s record of 2.14 billion tonnes. Of the total, wheat was pegged at 757 million tonnes, which would be up by 8 million from an earlier estimate.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up xx cents at US$63.95 per barrel.
In the afternoon, the Canadian dollar was trading around US 80.560 cents, down from xxxx cents the previous trading day. The U.S. dollar was C$1.2413
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 18 492.60s +2.90 +0.59%
Canola May 18 500.00s +2.90 +0.58%
Canola Jul 18 506.00s +3.10 +0.62%
Canola Nov 18 502.30s +3.40 +0.68%
Canola Jan 19 506.90s +2.40 +0.48%
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 18 973-0s +4-2 +0.44%
Soybeans May 18 984-2s +4-2 +0.43%
Soybeans Jul 18 994-0s +4-4 +0.45%
Soybeans Aug 18 996-6s +4-6 +0.48%
Soybeans Sep 18 994-4s +5-0 +0.51%
Soybean Meal Mar 18 328.4s +4.1 +1.26%
Soybean Meal May 18 332.0s +4.1 +1.25%
Soybean Meal Jul 18 334.7s +4.1 +1.24%
Soybean Oil Mar 18 32.23s -0.28 -0.86%
Soybean Oil May 18 32.43s -0.27 -0.83%
Soybean Oil Jul 18 32.63s -0.26 -0.79%
Corn Mar 18 351-4s -1-4 -0.42%
Corn May 18 359-4s -1-4 -0.42%
Corn Jul 18 367-6s -1-4 -0.41%
Corn Sep 18 375-2s -1-4 -0.40%
Corn Dec 18 385-0s -1-0 -0.26%
Oats Mar 18 259-6s +5-4 +2.16%
Oats May 18 259-0s +3-4 +1.37%
Oats Jul 18 263-4s +3-0 +1.15%
Oats Sep 18 264-4s +4-4 +1.73%
Oats Dec 18 264-2s +5-4 +2.13%
Wheat Mar 18 425-2s +3-6 +0.89%
Wheat May 18 438-2s +3-6 +0.86%
Wheat Jul 18 451-2s +3-4 +0.78%
Wheat Sep 18 466-0s +4-0 +0.87%
Wheat Dec 18 484-6s +4-4 +0.94%
Minneapolis
Spring Wheat Mar 18 610-4s -1-2 -0.20%
Spring Wheat May 18 619-6s -1-2 -0.20%
Spring Wheat Jul 18 626-6s -0-4 -0.08%
Spring Wheat Sep 18 625-0s +0-4 +0.08%
Spring Wheat Dec 18 634-6s +1-2 +0.20%
Kansas City
Hard Red Wheat Mar 18 429-4s +2-4 +0.59%
Hard Red Wheat May 18 443-0s +2-4 +0.57%
Hard Red Wheat Jul 18 459-2s +2-6 +0.60%
Hard Red Wheat Sep 18 475-4s +3-0 +0.63%
Hard Red Wheat Dec 18 496-4s +3-2 +0.66%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 18 121.950s +0.975 +0.81%
Live Cattle Apr 18 123.475s +0.700 +0.57%
Live Cattle Jun 18 115.350s +0.900 +0.79%
Feeder Cattle Jan 18 149.175s +1.300 +0.88%
Feeder Cattle Mar 18 147.175s +1.200 +0.82%
Feeder Cattle Apr 18 147.375s +1.250 +0.86%
Lean Hogs Feb 18 73.050s +0.325 +0.45%
Lean Hogs Apr 18 75.900s +0.375 +0.50%
Lean Hogs May 18 80.125s -0.425 -0.53%
