Winnipeg – ICE Futures canola contracts were stronger on Thursday, as the oversold market found support from concerns over hot and dry growing conditions in parts of Western Canada.
In addition to the weather concerns, canola was also underpinned by weakness in the Canadian dollar which was down by about half a cent relative to its U.S. counterpart. The softer currency should help boost crush margins and make exports more attractive to global buyers.
Gains in Chicago Board of Trade soybeans were also supportive, although soyoil ended lower.
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Expectations for a large Canadian canola crop, despite any nearby weather concerns, also tempered the upside.
About 11,884 canola contracts traded, which compares with Wednesday when 12,065 contracts changed hands. Spreading accounted for 4,426 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade settled with small gains on Thursday, as supportive technical signals helped the market continue to recover off of the multi-year lows hit last week.
Weekly new crop soybean export sales reported by the United States Department of Agriculture topped market expectations, with about 600,000 tonnes set for delivery in the upcoming crop year. However, old crop business was a bit disappointing, at only 250,000 tonnes.
Weather concerns in parts of the Midwest were also supportive, although crop conditions are generally favourable overall.
The ongoing trade dispute between the U.S. and China remains a bearish influence in the background.
CORN futures were higher, as solid export demand provided support.
Weekly U.S. corn export sales were of 1.4 million tonnes of old and new crop business combined came in at the higher end of trade expectations.
Gains in wheat also provided spillover support for corn.
WHEAT futures were underpinned by speculative buying, while ongoing production concerns in a number of key wheat growing regions of the world were also supportive.
Weekly U.S. wheat export sales of about 300,000 tonnes were an improvement from last week, but well below what was sold during the same week a year ago.
The advancing U.S. winter wheat harvest and relatively favourable spring conditions also weighed on prices.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were US$69.44 per barrel.
In the afternoon, the Canadian dollar was trading around US$0.7538 cents. The U.S. dollar was C$1.3266
Winnipeg ICE Futures Canada dollars per tonne.
Canola Nov 18 493.30s +1.40 +0.28%
Canola Jan 19 499.30s +1.50 +0.30%
Canola Mar 19 504.90s +1.90 +0.38%
Canola May 19 509.70s +1.70 +0.33%
Canola Jul 19 511.80s +1.30 +0.25%
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 Aug 18 846-0s +3-6 +0.45%
Soybeans Sep 18 852-0s +4-0 +0.47%
Soybeans Nov 18 861-4s +3-6 +0.44%
Soybeans Jan 19 871-6s +3-6 +0.43%
Soybeans Mar 19 880-6s +3-4 +0.40%
Soybean Meal Aug 18 328.8s +0.6 +0.18%
Soybean Meal Sep 18 327.4s +0.4 +0.12%
Soybean Meal Oct 18 326.6s +0.3 +0.09%
Soybean Oil Aug 18 27.83s -0.24 -0.86%
Soybean Oil Sep 18 27.93s -0.24 -0.85%
Soybean Oil Oct 18 28.01s -0.25 -0.88%
Corn Sep 18 351-2s +4-0 +1.15%
Corn Dec 18 365-0s +4-0 +1.11%
Corn Mar 19 376-4s +3-6 +1.01%
Corn May 19 382-6s +3-4 +0.92%
Corn Jul 19 388-6s +3-4 +0.91%
Oats Sep 18 232-0s -2-0 -0.85%
Oats Dec 18 237-2s -3-0 -1.25%
Oats Mar 19 241-0s -4-2 -1.73%
Oats May 19 242-6s -4-2 -1.72%
Oats Jul 19 247-6s -4-2 -1.69%
Wheat Sep 18 504-2s +9-6 +1.97%
Wheat Dec 18 520-4s +9-6 +1.91%
Wheat Mar 19 536-0s +9-6 +1.85%
Wheat May 19 545-6s +9-4 +1.77%
Wheat Jul 19 549-6s +8-4 +1.57%
Minneapolis
Spring Wheat Sep 18 536-6s +8-6 +1.66%
Spring Wheat Dec 18 554-6s +8-4 +1.56%
Spring Wheat Mar 19 572-0s +8-6 +1.55%
Spring Wheat May 19 582-4s +8-6 +1.53%
Spring Wheat Jul 19 592-4s +9-0 +1.54%
Kansas City
Hard Red Wheat Sep 18 496-4s +8-6 +1.79%
Hard Red Wheat Dec 18 521-4s +8-4 +1.66%
Hard Red Wheat Mar 19 539-6s +7-6 +1.46%
Hard Red Wheat May 19 549-4s +7-6 +1.43%
Hard Red Wheat Jul 19 555-0s +8-2 +1.51%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle (Pit) Aug 18 108.900s -0.050 -0.05%
Live Cattle (Pit) Oct 18 110.650s unch unch
Live Cattle (Pit) Dec 18 114.425s +0.225 +0.20%
Feeder Cattle (Pit) Aug 18 154.450s unch unch
Feeder Cattle (Pit) Sep 18 154.775s +0.125 +0.08%
Feeder Cattle (Pit) Oct 18 154.925s +0.200 +0.13%
Lean Hogs (Pit) Aug 18 67.250s +0.050 +0.07%
Lean Hogs (Pit) Oct 18 52.225s +0.300 +0.58%
Lean Hogs (Pit) Dec 18 46.875s -0.150 -0.32%
