Canola softens ahead of U.S. China talks

Winnipeg – ICE Futures canola contracts were weaker on Wednesday, although activity was choppy as traders await fresh trade news.

“Everyone is marking time,” said a trader, noting that participants were keeping a close eye on trade negotiations between the United States and China this week.

Strength in the Canadian dollar accounted for some of the selling pressure in canola, according to participants.

A lack of significant end user demand, as visible supplies remain large, added to the softer tone.

However, gains in Chicago soyoil and soybeans provided some spillover support.

Cold temperatures across much of the Prairies are slowing farmer deliveries, which also helped limit the losses.

About 25,124 canola contracts traded on Wednesday, which compares with Tuesday when 14,517 contracts changed hands. Spreading accounted for 18,638 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade posted small gains on Wednesday, amid increasing optimism that trade talks between China and the United States will lead to improved relations between the two countries.

Weather concerns and declining production prospects in parts of Brazil were also supportive. However, mounting harvest pressure out of the South American country did temper the advances.

The U.S. Department of Agriculture is expected to release its first weekly export sales report in over a month on Thursday, following the partial government shutdown. Monthly supply/demand and production numbers will be out Feb. 8.

CORN was higher, with chart-based buying contributing to the gains as the March contract rose above its 50-day moving average.

Dryness concerns in Brazil were also supportive, as early yield reports are coming in below expectations and the second crop being planted in some areas will also face low moisture reserves.

WHEAT futures were higher at the close, after trading to both sides of unchanged throughout the session.

Bitterly cold temperatures in parts of the Midwest provided some support, amid concerns over winterkill in areas with not enough snow cover.

While U.S. wheat is said to be looking more attractively priced compared to Russian wheat on the global market that has yet to translate into increased business.

Next week’s USDA reports will include winter wheat acreage estimates, with average trade guesses predicting a slight downward revision in planted area on the year.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 92 cents at US$54.23 per barrel.

In the afternoon, the Canadian dollar was trading around US75.80 cents, up from 75.38 cents the previous trading day. The U.S. dollar was C$1.3192.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 19 483.60s -0.90 -0.19%

Canola May 19 491.80s -1.00 -0.20%

Canola Jul 19 499.50s -0.90 -0.18%

Canola Nov 19 497.20s -0.50 -0.10%

Canola Jan 20 502.30s -0.30 -0.06%

 

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 Mar 19 921-0s +2-0 +0.22%

Soybeans May 19 935-0s +2-2 +0.24%

Soybeans Jul 19 947-4s +2-2 +0.24%

Soybeans Aug 19 952-2s +2-0 +0.21%

Soybeans Sep 19 954-2s +2-0 +0.21%

 

Soybean Meal Mar 19 311.1s -0.7 -0.22%

Soybean Meal May 19 315.1s -0.7 -0.22%

Soybean Meal Jul 19 318.9s -0.7 -0.22%

 

Soybean Oil Mar 19 30.42s +0.31 +1.03%

Soybean Oil May 19 30.74s +0.31 +1.02%

Soybean Oil Jul 19 31.05s +0.31 +1.01%

 

Corn Mar 19 381-2s +4-0 +1.06%

Corn May 19 389-6s +3-6 +0.97%

Corn Jul 19 397-4s +3-6 +0.95%

Corn Sep 19 399-4s +3-2 +0.82%

Corn Dec 19 403-6s +2-6 +0.69%

 

Oats Mar 19 282-2s +0-2 +0.09%

Oats May 19 284-0s +1-4 +0.53%

Oats Jul 19 283-2s +1-4 +0.53%

Oats Sep 19 273-6s +0-6 +0.27%

Oats Dec 19 265-6s -0-4 -0.19%

 

Wheat Mar 19 516-6s +3-4 +0.68%

Wheat May 19 522-4s +3-0 +0.58%

Wheat Jul 19 528-0s +3-0 +0.57%

Wheat Sep 19 536-6s +2-6 +0.51%

Wheat Dec 19 550-2s +2-4 +0.46%

 

Minneapolis

Spring Wheat Mar 19 571-4s +3-2 +0.57%

Spring Wheat May 19 575-2s +3-6 +0.66%

Spring Wheat Jul 19 581-4s +3-2 +0.56%

Spring Wheat Sep 19 588-2s +3-2 +0.56%

Spring Wheat Dec 19 600-0s +2-0 +0.33%

 

Kansas City

Hard Red Wheat Mar 19 502-2s +2-0 +0.40%

Hard Red Wheat May 19 512-0s +2-0 +0.39%

Hard Red Wheat Jul 19 522-0s +2-0 +0.38%

Hard Red Wheat Sep 19 532-6s +2-0 +0.38%

Hard Red Wheat Dec 19 549-2s +2-2 +0.41%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 19 126.150s -0.325 -0.26%

Live Cattle Apr 19 128.050s +0.250 +0.20%

Live Cattle Jun 19 117.700s +0.300 +0.26%

 

Feeder Cattle Jan 19 142.375s -0.275 -0.19%

Feeder Cattle Mar 19 144.300s +0.050 +0.03%

Feeder Cattle Apr 19 145.825s +0.125 +0.09%

 

Lean Hogs Feb 19 57.450s +0.125 +0.22%

Lean Hogs Apr 19 62.225s -0.325 -0.52%

Lean Hogs May 19 68.375s -0.150 -0.22%

 

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