Canola sinks with vegetable oil

Winnipeg (CNS Canada) – The ICE Futures Canada canola market drifted lower on Wednesday, dragged down by losses in vegetable oil and some technical selling.

Recent strength in the Canadian dollar also weighed on values as it made canola less enticing to international buyers.

The dominant July contract fell below the C$530 per tonne mark.

There are ideas the market is overbought, which undermined prices.

However, cold weather in Western Canada has sparked ideas that acres, intended for canola, could be switched to other crops.

Yesterday’s USDA report, which projected slightly lower ending stocks of US soybeans, was supportive.

Around 26,329 canola contracts were traded on Wednesday, which compares with Tuesday when around 25,548 contracts changed hands. Spreading accounted for 20,106 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

The soybean market ticked lower on Wednesday in technical selling.

The effects of yesterday’s USDA supply and demand report appear to have dissipated from the charts. The market was initially bolstered by declines in the U.S. carryout but forecasts calling for a record-large crop in Brazil seem to have offset that.

Two crushing plants in Argentina that had been on strike are reportedly up and running again.

Corn ended a few cents weaker on Wednesday.

Trading was choppy as investors waited for fresh news. Many analysts expect acreage in the U.S. will decline this year due to the late spring.

China will auction off seven million tonnes of four-year old corn starting April 19.

Chicago wheat futures in Chicago ended lower as the market continued to react to yesterday’s stocks report.

Ending stocks in the U.S. were raised in the USDA report to 1.06 billion bushels. That was higher than the average estimate, heading into the report, of 1.04 billion bushels.

The agency pegged global wheat inventories at 271.2 million tonnes, which was much higher than last year’s figure of 254.6 million.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up $1.31 at US$66.82 per barrel.

In the afternoon, the Canadian dollar was trading around US79.52 cents, up from 79.31 cents the previous trading day. The U.S. dollar was C$1.2575.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 18 523.40s -3.70 -0.70%

Canola Jul 18 528.00s -4.70 -0.88%

Canola Nov 18 516.10s -3.80 -0.73%

Canola Jan 19 520.00s -3.90 -0.74%

Canola Mar 19 521.10s -3.80 -0.72%

 

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 1047-6s -2-2 -0.21%

Soybeans Jul 18 1058-6s -1-4 -0.14%

Soybeans Aug 18 1059-0s -2-2 -0.21%

Soybeans Sep 18 1051-0s -1-4 -0.14%

Soybeans Nov 18 1046-4s -1-4 -0.14%

 

Soybean Meal May 18 380.2s -3.7 -0.96%

Soybean Meal Jul 18 384.3s -3.7 -0.95%

Soybean Meal Aug 18 383.3s -3.1 -0.80%

 

Soybean Oil May 18 31.53s -0.32 -1.00%

Soybean Oil Jul 18 31.81s -0.32 -1.00%

Soybean Oil Aug 18 31.96s -0.30 -0.93%

 

Corn May 18 387-0s -2-2 -0.58%

Corn Jul 18 395-6s -2-0 -0.50%

Corn Sep 18 402-6s -2-0 -0.49%

Corn Dec 18 412-0s -2-0 -0.48%

Corn Mar 19 419-6s -1-6 -0.42%

 

Oats May 18 237-4s +1-0 +0.42%

Oats Jul 18 244-0s +1-2 +0.51%

Oats Sep 18 249-4s +2-2 +0.91%

Oats Dec 18 260-0s +3-6 +1.46%

Oats Mar 19 266-6s +3-6 +1.43%

 

Wheat May 18 487-2s -4-6 -0.97%

Wheat Jul 18 504-2s -4-2 -0.84%

Wheat Sep 18 522-6s -3-0 -0.57%

Wheat Dec 18 545-6s -2-6 -0.50%

Wheat Mar 19 563-4s -2-2 -0.40%

 

Minneapolis

Spring Wheat May 18 629-0s +2-4 +0.40%

Spring Wheat Jul 18 638-6s +2-4 +0.39%

Spring Wheat Sep 18 641-6s +0-4 +0.08%

Spring Wheat Dec 18 650-0s -0-4 -0.08%

Spring Wheat Mar 19 655-6s -2-4 -0.38%

 

Kansas City

Hard Red Wheat May 18 516-6s -5-0 -0.96%

Hard Red Wheat Jul 18 535-6s -4-6 -0.88%

Hard Red Wheat Sep 18 555-0s -4-4 -0.80%

Hard Red Wheat Dec 18 579-2s -3-6 -0.64%

Hard Red Wheat Mar 19 594-2s -2-6 -0.46%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 18 113.500s +0.700 +0.62%

Live Cattle Jun 18 101.575s -0.525 -0.51%

Live Cattle Aug 18 102.375s +0.075 +0.07%

 

Feeder Cattle Apr 18 135.275s +0.450 +0.33%

Feeder Cattle May 18 135.550s +0.275 +0.20%

Feeder Cattle Aug 18 140.700s +0.075 +0.05%

 

Lean Hogs Apr 18 53.300s -0.200 -0.37%

Lean Hogs May 18 67.925s +0.475 +0.70%

Lean Hogs Jun 18 75.775s +0.725 +0.97%

 

 

About the author

Comments

Markets at a glance

Copyright © 2019. All market data is provided by Barchart Market Data Solutions. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

explore

Stories from our other publications