Canola, soybeans end the week higher

Winnipeg – Canola contracts on the ICE Futures Canada platform finished higher on Friday, taking strength from solid gains in soybeans and soyoil.

Traders were squaring positions before the weekend.

Much of Western Canada is expecting hot temperatures over the weekend and early into next week, which should stress some areas of Saskatchewan and Alberta.

Today seemed to be a classic case of “sell the rumour, buy the fact” as China’s implementation of tariffs on U.S. soybeans failed to pressure oilseed markets.

“A lot of the negative news was already priced in so the pendulum swung the other way,” said an analyst in Winnipeg.

However, strength in the Canadian dollar, relative to its U.S. counterpart, made canola less attractive to out-of-country buyers.

Volumes were relatively light as some traders stepped to the sidelines, waiting for the expected turbulence from today’s tariff deadline to clear.

About 13,093 canola contracts traded, which compares with
Thursday when 12,293 contracts changed hands. Spreading accounted for 4,486 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Soybean futures on the Chicago Board of Trade corrected sharply higher Friday, as traders went bargain-hunting in the morning amid ideas the market was oversold. The market was also undergoing a bit of a correction after dropping earlier this week on fears of what impact Chinese tariffs would have on the U.S. soybean market.

Informa Economics pegged the U.S. soybean yield at 49.8 bushels an acre. That is up slightly from the previous estimate.

Some soybean fields in the Midwest are suffering from excess moisture while other fields in the U.S. Plains are in need of rain.

Corn futures posted gains with speculative buying.

Informa raised its U.S. corn yield estimate to 176 bushels an acre, which was up by roughly 1.5 bushels over the previous forecast.

The removal of Scott Pruitt as head of the Environmental Protection Agency has thrown some uncertainty into the market. There seems to be some questions over what this will mean for ethanol blending requirements.

Chicago wheat futures ended higher, taking strength from gains in corn and some technical buying.

The USDA’s projection of lower wheat supplies around the globe continued to underpin prices.

The next week is expected to be dry in the U.S. Plains, which was supportive for prices.

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 512.00 504.00 511.20 6.30 511.20

Canola Jan 516.70 509.70 516.20 5.60 516.20

Canola Mar 2019 519.90 512.70 519.50 5.00 519.50

Canola May 2019 522.00 515.70 521.90 5.10 521.90

Canola Jul 2019 523.20 523.00 523.20 4.50 523.20

 

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 Jul 2018 877.25 836.00 874.00 38.50 874.00

Soybeans Aug 2018 880.75 837.00 877.50 38.25 877.50

Soybeans Sep 2018 886.25 842.50 883.00 38.00 883.25

Soybeans Nov 2018 897.75 853.25 894.25 38.50 894.50

Soybeans Jan 2019 907.25 862.75 903.25 38.00 904.00

Soybeans Mar 2019 914.25 870.25 911.00 39.00 911.00

 

Soybean Meal Jul 2018 340.40 328.00 339.80 11.60 339.80

Soybean Meal Aug 2018 339.70 326.00 337.10 10.70 338.10

Soybean Meal Sep 2018 339.80 325.50 337.40 11.50 338.40

 

Soybean Oil Jul 2018 28.88 28.36 28.90 0.43 28.90

Soybean Oil Aug 2018 29.14 28.42 29.00 0.43 29.02

Soybean Oil Sep 2018 29.22 28.52 29.11 0.44 29.11

 

Corn Jul 2018 352.25 342.00 350.75 7.25 351.75

Corn Sep 2018 361.25 349.50 359.50 7.25 360.25

Corn Dec 2018 374.00 362.00 372.25 7.75 373.00

Corn Mar 2019 384.25 372.25 382.75 7.75 383.25

Corn May 2019 390.75 379.25 389.50 7.75 390.00

 

Oats Jul 2018 265.00 254.00 254.25 -4.00 254.25

Oats Sep 2018 243.75 238.50 240.50 0.50 240.50

Oats Dec 2018 247.00 241.25 242.25 -1.25 242.75

Oats Mar 2019 246.25 246.00 247.25 -1.75 247.25

Oats May 2019 249.00 249.00 249.00 -1.75 249.00

 

Wheat Jul 2018 513.25 500.25 512.75 8.75 512.75

Wheat Sep 2018 516.25 498.25 513.75 8.25 515.25

Wheat Dec 2018 530.25 513.00 529.25 9.50 530.00

Wheat Mar 2019 544.25 526.50 543.50 10.25 543.75

Wheat May 2019 553.25 536.75 552.25 9.75 553.00

 

Minneapolis

Spring Wheat Jul 2018 545.75 545.75 545.75 12.25 545.75

Spring Wheat Sep 2018 560.00 546.50 558.25 10.75 558.25

Spring Wheat Dec 2018 576.75 564.25 575.00 10.50 575.00

Spring Wheat Mar 2019 591.25 579.75 590.00 10.25 590.00

Spring Wheat May 2019 600.50 590.00 600.00 10.00 600.00

 

Kansas City

Hard Red Wheat Jul 2018 490.50 481.50 492.25 10.25 492.25

Hard Red Wheat Sep 2018 514.25 497.25 511.25 8.00 513.00

Hard Red Wheat Dec 2018 535.00 519.00 533.25 8.75 534.25

Hard Red Wheat Mar 2019 550.25 535.00 548.75 8.00 549.75

Hard Red Wheat May 2019 558.50 543.50 558.00 8.50 558.00

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle   Aug 2018 108.22 106.25 106.50 0.13 106.38

Live Cattle   Oct 2018 111.52 109.52 109.72 -0.41 109.62

Live Cattle   Dec 2018 115.20 113.60 113.68 -0.59 113.70

 

Feeder Cattle   Aug 2018 154.08 152.05 152.20 -0.38 152.20

Feeder Cattle   Sep 2018 154.18 152.15 152.15 -0.42 152.28

Feeder Cattle   Oct 2018 153.82 151.98 151.98 -0.55 152.15

 

Lean Hogs   Jul 2018 82.85 81.25 81.45 -1.85 81.38

Lean Hogs   Aug 2018 76.98 75.25 75.52 -0.53 75.42

Lean Hogs   Oct 2018 60.20 58.28 58.65 -0.90 58.55

 

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