Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were stronger on Thursday, as gains in the Chicago Board of Trade soy complex and weakness in the Canadian dollar provided support.
The Canadian dollar fell sharply relative to its U.S. counterpart, losing roughly half a cent to trade at its weakest levels in nine months. The weaker currency underpins crush margins and makes exports more attractive to international buyers.
Supportive technical signals added to the firmer tone in canola, with fund traders reportedly adding to long positions.
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However, ample old crop canola supplies and expectations for large seeded acres this spring tempered the upside. Ideas that the dryness concerns in Argentina have been priced into the market for the time being also put some pressure on values.
About 17,706 canola contracts traded on Thursday, which compares with Wednesday when 12,576 contracts changed hands. Spreading accounted for 8,294 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved higher on Thursday, as weekly U.S. soybean export sales of about 1.3 million tonnes came in at the top end of trade guesses.
Solid monthly crush data was also supportive, with the National Oilseed Processors Association reporting a February crush of 153.7 million bushels. That came in well above expectations, and marks a new record for the month. However, the resulting increase in soyoil and meal stocks did limit the advances.
Expectations for a sizeable increase in U.S. soybean acres this spring also weighed on values.
CORN futures settled with small losses, despite favourable export data. Weekly U.S. corn export sales of 2.5 million tonnes were well above trade estimates.
Expectations that the increased U.S. soybean acres will come at the expense of corn were also supportive.
However, corn ran into upside resistance and retreated below unchanged. Large old crop corn supplies continue to overhang the market, with any gains bringing in additional selling pressure.
All three U.S. WHEAT markets were lower on the day. Weekly U.S. wheat export sales were disappointing, at only about 200,000 tonnes for old and new crop combined. Large world wheat supplies also weighed on values.
However, the ongoing dryness concerns across the Southern Plains provided some underlying support.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up 23 cents at US$61.19 per barrel.
In the afternoon, the Canadian dollar was trading around US76.59 cents, down from 77.18 cents the previous trading day. The U.S. dollar was C$1.3056.
Winnipeg ICE Futures Canada dollars per tonne.
Canola May 18 522.00s +3.60 +0.69%
Canola Jul 18 527.80s +3.70 +0.71%
Canola Nov 18 516.30s +2.70 +0.53%
Canola Jan 19 520.10s +2.60 +0.50%
Canola Mar 19 522.10s +2.40 +0.46%
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 1040-6s +8-4 +0.82%
Soybeans Jul 18 1051-2s +8-2 +0.79%
Soybeans Aug 18 1052-6s +8-0 +0.77%
Soybeans Sep 18 1040-0s +6-0 +0.58%
Soybeans Nov 18 1033-4s +4-6 +0.46%
Soybean Meal May 18 371.0s +0.1 +0.03%
Soybean Meal Jul 18 372.6s +0.1 +0.03%
Soybean Meal Aug 18 369.9s +0.1 +0.03%
Soybean Oil May 18 32.06s +0.35 +1.10%
Soybean Oil Jul 18 32.30s +0.35 +1.10%
Soybean Oil Aug 18 32.41s +0.35 +1.09%
Corn May 18 386-6s -2-0 -0.51%
Corn Jul 18 394-4s -2-2 -0.57%
Corn Sep 18 400-0s -2-2 -0.56%
Corn Dec 18 406-2s -1-4 -0.37%
Corn Mar 19 413-0s -1-2 -0.30%
Oats May 18 251-0s -4-6 -1.86%
Oats Jul 18 256-0s -3-2 -1.25%
Oats Sep 18 255-6s -3-0 -1.16%
Oats Dec 18 256-2s -3-4 -1.35%
Oats Mar 19 260-0s -3-4 -1.33%
Wheat May 18 478-6s -10-0 -2.05%
Wheat Jul 18 496-0s -10-2 -2.02%
Wheat Sep 18 512-4s -10-2 -1.96%
Wheat Dec 18 533-2s -10-2 -1.89%
Wheat Mar 19 549-2s -9-6 -1.74%
Minneapolis
Spring Wheat May 18 615-4s -6-2 -1.01%
Spring Wheat Jul 18 622-2s -6-0 -0.96%
Spring Wheat Sep 18 628-2s -6-0 -0.95%
Spring Wheat Dec 18 637-2s -5-0 -0.78%
Spring Wheat Mar 19 643-2s -6-0 -0.92%
Kansas City
Hard Red Wheat May 18 513-4s -11-2 -2.14%
Hard Red Wheat Jul 18 530-4s -11-2 -2.08%
Hard Red Wheat Sep 18 547-6s -11-4 -2.06%
Hard Red Wheat Dec 18 567-2s -11-4 -1.99%
Hard Red Wheat Mar 19 578-0s -11-4 -1.95%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 18 121.850s -1.150 -0.93%
Live Cattle Jun 18 112.300s -0.950 -0.84%
Live Cattle Aug 18 109.800s -0.975 -0.88%
Feeder Cattle Mar 18 140.625s -1.425 -1.00%
Feeder Cattle Apr 18 140.825s -1.900 -1.33%
Feeder Cattle May 18 141.600s -2.025 -1.41%
Lean Hogs Apr 18 65.725s -1.150 -1.72%
Lean Hogs May 18 72.750s +0.700 +0.97%
Lean Hogs Jun 18 79.175s +0.825 +1.05%
