Winnipeg (CNS Canada) – ICE Futures Canada canola contracts held onto small gains on Friday, seeing some follow-through buying to end the week as supportive technical signals kept speculators on the buy side.
Weakness in the Canadian dollar accounted for much of the strength in the futures, as the declining currency made exports more attractive to international buyers and also underpinned crush margins.
Gains in Chicago Board of Trade soybeans were also supportive.
However, ample old crop canola supplies and expectations for large seeded acres this spring tempered the upside.
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U.S. soybean futures fell to a 1-1/2 week low on Tuesday as China continued to shun purchases from the United States and as forecasts for improved rains in the coming days reinforced expectations for a sizeable Midwest harvest.
About 12,551 canola contracts traded on Friday, which compares with Thursday when 17,706 contracts changed hands. Spreading accounted for 6,170 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved higher on Friday, as production estimates out of Argentina continue to be revised lower. That kept beans underpinned despite the fact that the drought conditions there have been priced into the futures for some time now.
Thursday’s solid weekly export sales numbers and better-than-expected monthly crush demand remained supportive as well.
The United States Department of Agriculture reported an export sale of 20,000 tonnes of U.S. soyoil to unknown destinations Friday morning.
However, expectations for a sizeable increase in U.S. soybean acres this spring kept a lid on the market.
CORN futures settled with small losses, as spillover from the downturn in wheat more than made up for any support coming from the gains in soybeans. Large U.S. supplies and bearish technical signals also put some pressure on values.
However, the drought in Argentina did lend some support, as corn production estimates out of the South American country are also being revised lower.
WHEAT futures were lower, with the largest losses in the Chicago and Kansas City winter wheat contracts. The latest forecasts are calling for much needed rain in some parts of the dry southern U.S. Plains.
Improved moisture conditions in Russia and Ukraine were also bearish for the wheat markets, with large crops expected out of the Black Sea region once again.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up $1.15 at US$62.34 per barrel.
In the afternoon, the Canadian dollar was trading around US76.34 cents, down from 76.59 cents the previous trading day. The U.S. dollar was C$1.3099.
Winnipeg ICE Futures Canada dollars per tonne.
Canola May 18 523.10s +1.10 +0.21%
Canola Jul 18 528.40s +0.60 +0.11%
Canola Nov 18 517.90s +1.60 +0.31%
Canola Jan 19 521.80s +1.70 +0.33%
Canola Mar 19 523.50s +1.40 +0.27%
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 1049-4s +8-6 +0.84%
Soybeans Jul 18 1060-2s +9-0 +0.86%
Soybeans Aug 18 1061-2s +8-4 +0.81%
Soybeans Sep 18 1047-6s +7-6 +0.75%
Soybeans Nov 18 1041-0s +7-4 +0.73%
Soybean Meal May 18 372.9s +1.9 +0.51%
Soybean Meal Jul 18 374.6s +2.0 +0.54%
Soybean Meal Aug 18 371.3s +1.4 +0.38%
Soybean Oil May 18 31.98s -0.08 -0.25%
Soybean Oil Jul 18 32.22s -0.08 -0.25%
Soybean Oil Aug 18 32.34s -0.07 -0.22%
Corn May 18 382-6s -4-0 -1.03%
Corn Jul 18 391-0s -3-4 -0.89%
Corn Sep 18 396-6s -3-2 -0.81%
Corn Dec 18 403-6s -2-4 -0.62%
Corn Mar 19 410-4s -2-4 -0.61%
Oats May 18 242-2s -8-6 -3.49%
Oats Jul 18 249-2s -6-6 -2.64%
Oats Sep 18 252-2s -3-4 -1.37%
Oats Dec 18 253-2s -3-0 -1.17%
Oats Mar 19 257-0s -3-0 -1.15%
Wheat May 18 467-6s -11-0 -2.30%
Wheat Jul 18 485-0s -11-0 -2.22%
Wheat Sep 18 502-0s -10-4 -2.05%
Wheat Dec 18 523-2s -10-0 -1.88%
Wheat Mar 19 539-6s -9-4 -1.73%
Minneapolis
Spring Wheat May 18 611-6s -3-6 -0.61%
Spring Wheat Jul 18 618-4s -3-6 -0.60%
Spring Wheat Sep 18 625-2s -3-0 -0.48%
Spring Wheat Dec 18 635-0s -2-2 -0.35%
Spring Wheat Mar 19 641-4s -1-6 -0.27%
Kansas City
Hard Red Wheat May 18 499-4s -14-0 -2.73%
Hard Red Wheat Jul 18 516-4s -14-0 -2.64%
Hard Red Wheat Sep 18 533-2s -14-4 -2.65%
Hard Red Wheat Dec 18 553-4s -13-6 -2.42%
Hard Red Wheat Mar 19 564-6s -13-2 -2.29%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 18 121.250s -0.600 -0.49%
Live Cattle Jun 18 111.750s -0.550 -0.49%
Live Cattle Aug 18 109.125s -0.675 -0.61%
Feeder Cattle Mar 18 139.975s -0.650 -0.46%
Feeder Cattle Apr 18 140.200s -0.625 -0.44%
Feeder Cattle May 18 140.950s -0.650 -0.46%
Lean Hogs Apr 18 65.450s -0.275 -0.42%
Lean Hogs May 18 72.750s unch unch
Lean Hogs Jun 18 79.125s -0.050 -0.06%
