WINNIPEG (CNS) – The ICE Futures Canada canola market finished lower on the day, weighed down by strength in the Canadian dollar.
Thoughts the market was overbought also dragged down prices.
In its latest supply and demand report that was released today, the USDA forecast a record soybean crop in Brazil of 115 million tonnes. The agency also pegged soybean exports in the U.S. at 2.065 billion bushels, which was very similar to the previous forecast.
The USDA said 120,000 tonnes of U.S. soybeans were sold to Argentina. That is a rare move as Argentina usually is one of the world’s largest rivals to the U.S. when it comes to soybeans. The move only underscores how serious this year’s drought has been in the South American country. The USDA pegged Argentina’s soybean crop at 40 million tonnes, which compares to last month’s estimate of 46.5 million.
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On the other side, gains in U.S. soybeans and soyoil were supportive for values.
Around 25,548 canola contracts were traded on Tuesday, which compares with Monday when around 32,210 contracts changed hands. Spreading accounted for 19,280 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market posted mild gains on Tuesday as traders reacted to the USDA’s monthly supply and demand report.
The USDA lowered its estimate for the size of this year’s drought-ravaged Argentine soybean crop to 40.0 million tonnes. This was bullish news for exporters in the United States as some estimates last month projected the crop at 46.5 million tonnes. It also is drastically lower than last year’s total of 57.8 million.
The news that U.S. soybean exports are on track to meet this year’s target, despite the trade battles between China and the U.S., was also deemed supportive for the market.
The USDA reduced its estimate for this year’s ending stocks to 550 million bushels, which was down five million from the previous estimate.
Corn ended roughly a cent weaker on Tuesday, after the USDA pegged this year’s corn crop in Argentina at 33 million tonnes. That compares to last year’s haul of 41 million.
The USDA raised its estimate for the U.S. corn surplus to 2.18 billion bushels. Traders were already worried about the large supply of corn in U.S. bins before the report, so this should add to those worries.
There are continued ideas that inclement weather in the eastern U.S. Plains could reduce corn acreage this spring.
Wheat futures in Chicago finished a few cents higher on the day while markets in Minneapolis and Kansas City were close to unchanged.
The market took some strength from the dry, cold conditions in the U.S. Plains.
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 $2.09 at US$65.51 per barrel.
In the afternoon, the Canadian dollar was trading around US79.31 cents, up from 78.72 cents the previous trading day. The U.S. dollar was C$1.2609.
Winnipeg ICE Futures Canada dollars per tonne.
Canola May 18 527.10s -3.90 -0.73%
Canola Jul 18 532.70s -4.00 -0.75%
Canola Nov 18 519.90s -1.80 -0.35%
Canola Jan 19 523.90s -1.40 -0.27%
Canola Mar 19 524.90s -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 1050-0s +3-0 +0.29%
Soybeans Jul 18 1060-2s +2-6 +0.26%
Soybeans Aug 18 1061-2s +2-6 +0.26%
Soybeans Sep 18 1052-4s +4-0 +0.38%
Soybeans Nov 18 1048-0s +4-6 +0.46%
Soybean Meal May 18 383.9s -5.7 -1.46%
Soybean Meal Jul 18 388.0s -5.7 -1.45%
Soybean Meal Aug 18 386.4s -4.8 -1.23%
Soybean Oil May 18 31.85s +0.33 +1.05%
Soybean Oil Jul 18 32.13s +0.34 +1.07%
Soybean Oil Aug 18 32.26s +0.33 +1.03%
Corn May 18 389-2s -1-4 -0.38%
Corn Jul 18 397-6s -1-2 -0.31%
Corn Sep 18 404-6s -1-2 -0.31%
Corn Dec 18 414-0s -0-6 -0.18%
Corn Mar 19 421-4s -0-4 -0.12%
Oats May 18 236-4s -0-6 -0.32%
Oats Jul 18 242-6s -0-6 -0.31%
Oats Sep 18 247-2s unch unch
Oats Dec 18 256-2s +0-4 +0.20%
Oats Mar 19 263-0s +0-4 +0.19%
Wheat May 18 492-0s +1-2 +0.25%
Wheat Jul 18 508-4s +2-4 +0.49%
Wheat Sep 18 525-6s +3-2 +0.62%
Wheat Dec 18 548-4s +3-6 +0.69%
Wheat Mar 19 565-6s +3-6 +0.67%
Minneapolis
Spring Wheat May 18 626-4s unch unch
Spring Wheat Jul 18 636-2s -0-2 -0.04%
Spring Wheat Sep 18 641-2s unch unch
Spring Wheat Dec 18 650-4s unch unch
Spring Wheat Mar 19 658-2s unch unch
Kansas City
Hard Red Wheat May 18 521-6s -1-0 -0.19%
Hard Red Wheat Jul 18 540-4s -1-2 -0.23%
Hard Red Wheat Sep 18 559-4s -0-6 -0.13%
Hard Red Wheat Dec 18 583-0s +0-2 +0.04%
Hard Red Wheat Mar 19 597-0s +1-0 +0.17%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 18 112.800s +0.775 +0.69%
Live Cattle Jun 18 102.100s -0.400 -0.39%
Live Cattle Aug 18 102.300s -0.450 -0.44%
Feeder Cattle Apr 18 134.825s +0.375 +0.28%
Feeder Cattle May 18 135.275s -0.250 -0.18%
Feeder Cattle Aug 18 140.625s -0.425 -0.30%
Lean Hogs Apr 18 53.500s +0.600 +1.13%
Lean Hogs May 18 67.450s +0.125 +0.19%
Lean Hogs Jun 18 75.050s -0.825 -1.09%
