Canola rises to three-month highs

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were stronger on Wednesday, hitting their highest levels in three months as gains in Chicago Board of Trade soybeans and weakness in the Canadian dollar provided support.

While CBOT soyoil futures were softer on the day, the activity in soymeal and the Canadian dollar were enough to help crush margins improve. Supportive technical signals also underpinned the canola market, with speculators reportedly adding to long positions.

However, farmer selling tempered the upside, as producers are still sitting on large supplies. Expectations for increased seeded acres this spring also weighed on values, according to participants.

About 25,469 canola contracts traded on Wednesday, which compares with Tuesday when 37,304 contracts changed hands. Spreading accounted for 15,160 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were higher on Wednesday, as the forecasts remain hot and dry across most of the growing regions in Argentina over the next week.

The USDA announced a 250,000 tonne sale of U.S. soybeans to unknown destinations this morning, adding to the firmer tone.

However, heavy deliveries against the March soyoil contract put some pressure on values.

CORN futures followed soybeans and wheat higher, with the dryness in Argentina also providing support. Wet weather in parts of the United States added to the firmer tone, as the precipitation is causing rivers to flood and slowing some barge movement.

Large old crop supplies and farmer selling tempered the upside in corn.

WHEAT futures were up sharply, with the Kansas City hard red winter wheat market leading the charge higher, as crop prospects in the U.S. Plains continue to deteriorate due to a lack of moisture.

The mounting weather worries kept selling to a minimum, while traders holding short positions were looking to get out of them.

Cold temperatures in Europe added to the firmer tone in wheat.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were down $1.37 at US$61.64 per barrel.

In the afternoon, the Canadian dollar was trading around US77.91 cents, down from 78.28 cents the previous trading day. The U.S. dollar was C$1.2835.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 18  520.30s  +3.00  +0.58%

Canola May 18  524.00s  +2.00  +0.38%

Canola Jul 18  529.00s  +0.90  +0.17%

Canola Nov 18  515.30s  +1.70  +0.33%

Canola Jan 19  519.70s  +2.40  +0.46%

 

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  1045-0s  +7-0  +0.67%

Soybeans May 18  1055-4s  +6-0  +0.57%

Soybeans Jul 18  1064-2s  +5-6  +0.54%

Soybeans Aug 18  1063-2s  +5-2  +0.50%

Soybeans Sep 18  1045-4s  +2-0  +0.19%

 

Soybean Meal Mar 18  394.2s  +7.7  +1.99%

Soybean Meal May 18  394.7s  +5.5  +1.41%

Soybean Meal Jul 18  392.1s  +5.7  +1.48%

 

Soybean Oil Mar 18  31.96s  -0.23  -0.71%

Soybean Oil May 18  32.23s  -0.17  -0.52%

Soybean Oil Jul 18  32.43s  -0.15  -0.46%

 

Corn Mar 18  374-4s  +4-0  +1.08%

Corn May 18  382-0s  +2-6  +0.73%

Corn Jul 18  389-4s  +2-4  +0.65%

Corn Sep 18  395-0s  +2-0  +0.51%

Corn Dec 18  401-4s  +1-4  +0.38%

Oats Mar 18  263-0s  +3-0  +1.15%

 

Oats May 18  270-2s  +0-4  +0.19%

Oats Jul 18  272-6s  +0-6  +0.28%

Oats Sep 18  268-2s  +0-6  +0.28%

Oats Dec 18  265-6s  +1-4  +0.57%

 

Wheat Mar 18  484-4s  +21-2  +4.59%

Wheat May 18  495-0s  +18-0  +3.77%

Wheat Jul 18  507-2s  +16-0  +3.26%

Wheat Sep 18  521-2s  +13-6  +2.71%

Wheat Dec 18  540-6s  +11-6  +2.22%

 

Minneapolis

Spring Wheat Mar 18  606-0s  +9-4  +1.59%

Spring Wheat May 18  621-6s  +12-6  +2.09%

Spring Wheat Jul 18  630-6s  +12-4  +2.02%

Spring Wheat Sep 18  637-6s  +12-2  +1.96%

Spring Wheat Dec 18  645-0s  +9-4  +1.49%

 

Kansas City

Hard Red Wheat Mar 18  508-2s  +19-2  +3.94%

Hard Red Wheat May 18  522-2s  +17-4  +3.47%

Hard Red Wheat Jul 18  539-0s  +16-4  +3.16%

Hard Red Wheat Sep 18  554-2s  +15-0  +2.78%

Hard Red Wheat Dec 18  573-0s  +14-0  +2.50%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 18  127.500s  -0.525  -0.41%

Live Cattle Apr 18  123.275s  -0.975  -0.78%

Live Cattle Jun 18  115.600s  -0.750  -0.64%

 

Feeder Cattle Mar 18  144.750s  -1.800  -1.23%

Feeder Cattle Apr 18  147.000s  -2.200  -1.47%

Feeder Cattle May 18  148.550s  -1.700  -1.13%

 

Lean Hogs Apr 18  67.225s  -2.725  -3.90%

Lean Hogs May 18  74.875s  -1.525  -2.00%

Lean Hogs Jun 18  80.675s  -1.350  -1.65%

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