Canola sees small gains Monday

Winnipeg – ICE Futures canola contracts settled with small gains on Monday after posting losses in the most active months for most of the session.

Gains in Chicago Board of Trade soybeans and soyoil provided some underlying support for canola, while a softer tone in the Canadian dollar also underpinned the futures.

Recent extreme heat across much of Western Canada was also supportive, as the adverse weather likely cut into the yield prospects in some areas.

However, temperatures were cooler on Monday, which put some pressure on values. Ideas that canola remains expensive compared to other oilseeds also tempered the upside.

About 9,874 canola contracts traded, which compares with Friday when 13,831 contracts changed hands. Spreading accounted for 3,694 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade posted small gains on Monday, as the market was due for a bit of a correction after dropping sharply on Friday. However, the large production forecast that triggered Friday’s selloff remained a bearish influence in the background.

While the ongoing trade war with China also continued to weigh on values, China’s state grain buyer Sinograin is reportedly paying the 25 per cent tax on a 70,000 tonne shipment of soybeans that had sat at port for the past five weeks.

The U.S. Department of Agriculture announced a flash sale of 142,500 tonnes of soybeans to Mexico this morning.

CORN futures posted small losses, as last Friday’s unexpectedly large yield estimate from the USDA continued to weigh on prices to start the week, especially as nearby weather forecasts remain relatively favourable across the Midwest.

However, solid export demand provided some support with flash sales of just over 200,000 tonnes of corn to Mexico announced this morning. Weekly U.S. corn inspections of about 1.2 million tonnes were also supportive.

WHEAT futures were down on Monday, seeing some follow-through selling after Friday’s turn lower.

While declining production prospects in a number of wheat growing regions of the world remained supportive, those concerns have been largely priced into the futures for the time being.

Relatively favourable harvest weather for the North American spring wheat crop also put some pressure on values.

Winnipeg ICE Futures Canada dollars per tonne.

Name / Contract Last Change % Change

Canola Nov 18 505.00s +0.10 +0.02%

Canola Jan 19 510.70s +0.60 +0.12%

Canola Mar 19 515.90s +1.50 +0.29%

Canola May 19 519.40s +0.80 +0.15%

Canola Jul 19 520.50s +0.50 +0.10%

 

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.

 

Milling Wheat Oct 18 252.00s +1.00 +0.40%

Milling Wheat Dec 18 252.00s +1.00 +0.40%

Milling Wheat Mar 19 252.00s +1.00 +0.40%

 

Chicago

Soybeans Aug 18 853-4s +7-4 +0.89%

Soybeans Sep 18 857-2s +6-4 +0.76%

Soybeans Nov 18 868-6s +7-0 +0.81%

Soybeans Jan 19 880-6s +7-2 +0.83%

Soybeans Mar 19 891-4s +6-4 +0.73%

 

Soybean Meal Aug 18 327.8s +4.3 +1.33%

Soybean Meal Sep 18 327.5s +5.8 +1.80%

Soybean Meal Oct 18 327.9s +5.8 +1.80%

 

Soybean Oil Aug 18 28.24s +0.25 +0.89%

Soybean Oil Sep 18 28.36s +0.26 +0.93%

Soybean Oil Oct 18 28.46s +0.26 +0.92%

 

Corn Sep 18 356-4s -1-2 -0.35%

Corn Dec 18 370-4s -1-2 -0.34%

Corn Mar 19 382-0s -1-2 -0.33%

Corn May 19 388-6s -1-4 -0.38%

Corn Jul 19 394-4s -1-4 -0.38%

 

Oats Sep 18 258-0s +1-2 +0.49%

Oats Dec 18 267-0s +0-4 +0.19%

Oats Mar 19 271-0s +0-2 +0.09%

Oats May 19 273-2s +0-2 +0.09%

Oats Jul 19 275-4s -0-4 -0.18%

 

Wheat Sep 18 533-4s -13-2 -2.42%

Wheat Dec 18 553-4s -16-0 -2.81%

Wheat Mar 19 575-4s -15-4 -2.62%

Wheat May 19 585-2s -13-4 -2.25%

Wheat Jul 19 581-2s -9-4 -1.61%

 

Minneapolis

Spring Wheat Sep 18 592-6s -16-0 -2.63%

Spring Wheat Dec 18 610-2s -15-6 -2.52%

Spring Wheat Mar 19 625-0s -14-0 -2.19%

Spring Wheat May 19 633-0s -13-4 -2.09%

Spring Wheat Jul 19 636-4s -12-2 -1.89%

 

Kansas City

Hard Red Wheat Sep 18 540-6s -19-0 -3.39%

Hard Red Wheat Dec 18 567-0s -18-0 -3.08%

Hard Red Wheat Mar 19 589-4s -17-0 -2.80%

Hard Red Wheat May 19 602-2s -16-4 -2.67%

Hard Red Wheat Jul 19 599-0s -14-6 -2.40%

 

Live Cattle   Aug 18 107.200s -1.050 -0.97%

Live Cattle   Oct 18 108.150s -1.100 -1.01%

Live Cattle   Dec 18 112.000s -1.100 -0.97%

 

Feeder Cattle   Aug 18 148.650s -1.250 -0.83%

Feeder Cattle   Sep 18 148.450s -1.075 -0.72%

Feeder Cattle   Oct 18 148.950s -0.525 -0.35%

 

Lean Hogs   Aug 18 55.525s +0.725 +1.32%

Lean Hogs   Oct 18 51.650s +0.475 +0.93%

Lean Hogs   Dec 18 48.575s +1.100 +2.32%

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

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