Canola starts the week strong

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Monday, due to gains in the Chicago soy complex and a weaker Canadian dollar.

The soy complex saw good gains in beans, oil and meal as shipping delays in China and South America pushed up prices.

By mid-afternoon Monday, the Canadian dollar was lower at 68.91 U.S. cents compared to Friday’s close of 69.77.

A trader noted that canola has lagged behind soyoil price movements.

There were 17,029 contracts traded on Monday, which compares with Friday when 18,680 contracts changed hands. Spreading accounted for 9,252 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola May 467.50 up 5.60
Jul 475.60 up 6.10
Nov 483.00 up 5.30
Jan 489.80 up 4.90

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Monday, benefitting from delays at ports in China and South America.

With soybean shipments being delayed at China’s ports due to quarantine procedures over COVID-19, several crushing plants have incurred shortages. The trading of soymeal on China’s commodity market was stopped after prices hit their daily maximum.

The Argentina government has closed that country’s ports for 15 days, stemming from the pandemic. Plus, there could be delays at the Santos port in Brazil as workers there take a strike vote.

In the United States Department of Agriculture’s (USDA) export inspections report, released today, soybean exports were just short of 21.0 million tonnes for the week ended March 19. Marketing year to date shipments were 31.19 million tonnes, up from the 28.58 million tonnes this time last year.

There is no official word from USDA that it might delay its March 1 grain stocks and the planting intentions reports. The reports are scheduled to be released on March 31. There has been market speculation that the reports could be delayed due to more USDA staff working from home as a result of the COVID-19 pandemic.

CORN futures were steady on Monday, with a quarter cent loss for the May contract while the July contract was unchanged.

A growing number of U.S. ethanol plants have shut down due to the Saudi Arabia/Russia crude oil price war and COVID-19. Drastically reduced crude prices have made ethanol production unprofitable.

In the USDA export inspections report, nearly 816,650 tonnes of corn were exported. Total exports so far in 2019/20 amounted to 16.75 million tonnes, which is down more than 41 per cent from this time last year.

WHEAT futures were stronger on Monday, with plus 20-cent gains for Chicago and Kansas City while Minneapolis has more moderate increases.

Export inspections of U.S. wheat were just shy of 349,370 tonnes. On the year, shipments reached 20.09 million tonnes which was 9.2 per cent of the pace at this point in 2018/19.

The USDA issued a correction to its March 20 announcement regarding sales to China. The corrected statement on Monday said 340,000 tonnes of hard red winter wheat was sold to China. Of that, 55,000 tonnes is for delivery this marketing year and the remainder during 2020/21. The rest of the March 20 announcement was correct.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 73 cents at US$23.36 per barrel.

In the afternoon, the Canadian dollar was trading around US69.05 cents, down from 69.77 cents the previous trading day. The U.S. dollar was C$1.4482.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 20 467.50s +5.60 +1.21%

Canola Jul 20 475.60s +6.10 +1.30%

Canola Nov 20 483.00s +5.30 +1.11%

Canola Jan 21 489.80s +4.90 +1.01%

Canola Mar 21 495.90s +4.50 +0.92%

 

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

Soybean May 20 884-0s +21-4 +2.49%

Soybean Jul 20 885-4s +20-6 +2.40%

Soybean Aug 20 884-6s +19-4 +2.25%

Soybean Sep 20 875-2s +13-4 +1.57%

Soybean Nov 20 872-4s +11-6 +1.37%

 

Soybean Meal May 20 333.6s +8.4 +2.58%

Soybean Meal Jul 20 324.0s +9.6 +3.05%

Soybean Meal Aug 20 315.1s +7.8 +2.54%

 

Soybean Oil May 20 26.14s +0.50 +1.95%

Soybean Oil Jul 20 26.40s +0.46 +1.77%

Soybean Oil Aug 20 26.54s +0.45 +1.72%

 

Corn May 20 343-4s -0-2 -0.07%

Corn Jul 20 349-4s unch unch

Corn Sep 20 355-2s +0-4 +0.14%

Corn Dec 20 364-2s +1-0 +0.28%

Corn Mar 21 374-4s +1-2 +0.33%

 

Oats May 20 268-4s +6-4 +2.48%

Oats Jul 20 267-2s +5-4 +2.10%

Oats Sep 20 260-2s +5-2 +2.06%

Oats Dec 20 259-2s +2-2 +0.88%

Oats Mar 21 263-2s +2-2 +0.86%

 

Wheat May 20 562-4s +23-2 +4.31%

Wheat Jul 20 555-6s +20-0 +3.73%

Wheat Sep 20 555-6s +17-4 +3.25%

Wheat Dec 20 562-2s +15-4 +2.83%

Wheat Mar 21 566-4s +12-2 +2.21%

 

Minneapolis

Spring Wheat May 20 530-2s +9-2 +1.78%

Spring Wheat Jul 20 538-4s +8-6 +1.65%

Spring Wheat Sep 20 546-2s +8-0 +1.49%

Spring Wheat Dec 20 557-6s +7-2 +1.32%

Spring Wheat Mar 21 570-4s +7-0 +1.24%

 

Kansas City

Hard Red Wheat May 20 489-4s +20-4 +4.37%

Hard Red Wheat Jul 20 493-2s +20-6 +4.39%

Hard Red Wheat Sep 20 499-4s +19-6 +4.12%

Hard Red Wheat Dec 20 508-2s +17-4 +3.57%

Hard Red Wheat Mar 21 515-6s +15-4 +3.10%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 20 101.650s +3.000 +3.04%

Live Cattle Jun 20 92.525s +3.000 +3.35%

Live Cattle Aug 20 93.750s +3.000 +3.31%

 

Feeder Cattle Mar 20 125.225s +4.500 +3.73%

Feeder Cattle Apr 20 123.325s +4.500 +3.79%

Feeder Cattle May 20 122.750s +4.500 +3.81%

 

Lean Hogs Apr 20 64.575s +3.000 +4.87%

Lean Hogs May 20 63.875s +3.000 +4.93%

Lean Hogs Jun 20 70.950s +3.000 +4.42%

 

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