Canola shows stronger

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.

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%

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