Canola starts the year with gains

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished higher Thursday, due to support from Malaysian palm oil and Chicago soyoil.

However an analyst said remains to be seen if canola remains range-bound. He cautioned that with low volumes trading, any moves can easily be exaggerated.

The Canadian dollar weighed on values.

There were 18,320 contracts traded on Thursday, which compares with Tuesday when 14,568 contracts changed hands. Spreading accounted for 11,620 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change

Canola Mar 480.00 up 1.90
May 489.10 up 1.60
Jul 494.80 up 1.00
Nov 498.00 up 0.70

SOYBEAN futures at the Chicago Board of Trade (CBOT) were steady on Thursday, after dropping back from larger gains earlier in the session.

A lot of attention in the markets has remained on Jan. 15, when the United States and China are scheduled to sign their Phase One trade agreement in Washington. The exact details of the deal remain sketchy, but it’s widely believed that China will purchase US$40 billion in U.S. agricultural products. That could include 35 million to 40 million tonnes of soybeans, according to a report.

With the New Year’s holiday, the U.S. Department of Agriculture (USDA) delayed its weekly export sales report to Friday. Estimates from Futures International pegged soybean sales between 500,000 to 700,000 tonnes. Soymeal sales were estimated to be 75,000 to 150,000 tonnes and soyoil at 15,000 to 30,000 tonnes.

The U.S. Energy Information Administration (EIA) reported on Tuesday that 558 million pounds of soyoil were produced in October. That’s down from 599 million pounds in September. Biodiesel production increased to 144 million gallons in October. That’s up by 2 million gallons from September.

CORN futures were higher on Thursday, pending the USDA’s crushing report.

The markets have been positioning themselves ahead of the USDA’s supply and demand report, to be released Jan. 10. The report will include revised data on the U.S. harvest. The corn harvest in the Northern Plains was badly delayed, especially in North Dakota with less than half of the crop harvested.

Futures International put U.S. corn export sales at 550,000 to 750,000 tonnes.

WHEAT futures were mixed on Thursday, with small gains for Chicago, but small losses for Minneapolis and Kansas City.

A weaker U.S. dollar has been helping wheat prices, which struggled to find sales throughout much of 2019. The greenback often losses ground to other global currencies at this time of the year.

Wheat could be a major winner in the Phase One deal. Although details are unknown, there is speculation that China could significantly boost its purchases of U.S. wheat.

Futures International placed U.S. wheat exports sales between 400,000 to 600,000 tonnes.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up xx cents at US$61.12 per barrel.

In the afternoon, the Canadian dollar was trading around US76.97 cents. The U.S. dollar was C$1.2992.

Name / Contract High Low Last Change Settlement
Canola Jan 2020 471.90 471.90 471.90 4.40 471.90
Canola Mar 2020 481.50 475.70 480.20 2.10 480.20
Canola May 2020 490.40 485.70 489.40 1.90 489.40
Canola Jul 2020 496.00 491.90 495.20 1.40 495.20
Canola Nov 2020 499.00 495.30 498.50 1.20 498.50
Soybean Jan 2020 949.00 941.75 944.25 1.25 946.00
Soybean Mar 2020 961.00 953.75 956.25 0.75 958.25
Soybean May 2020 973.50 966.75 969.50 0.75 971.00
Soybean Jul 2020 984.25 978.25 981.00 1.25 982.00
Soybean Aug 2020 987.50 981.50 984.50 1.50 985.25
Soybean Sep 2020 982.50 978.25 980.00 1.50 980.75
Soybean Meal Jan 2020 302.40 298.10 300.60 0.70 301.10
Soybean Meal Mar 2020 307.50 303.00 305.60 0.90 305.90
Soybean Meal May 2020 311.10 306.80 309.30 0.80 309.50
Soybean Oil Jan 2020 35.36 34.88 34.97 0.48 35.03
Soybean Oil Mar 2020 35.67 35.11 35.24 0.47 35.30
Soybean Oil May 2020 35.94 35.40 35.52 0.46 35.58
Corn Mar 2020 392.00 387.25 391.50 3.75 391.25
Corn May 2020 398.50 394.50 398.00 3.25 397.50
Corn Jul 2020 404.50 400.50 404.00 3.00 403.25
Corn Sep 2020 403.25 400.50 403.00 2.00 402.00
Corn Dec 2020 404.75 401.75 404.50 2.00 403.75
Oats Mar 2020 298.00 291.00 298.00 6.00 297.50
Oats May 2020 295.00 289.75 294.75 5.00 294.00
Oats Jul 2020 292.00 285.75 288.50 5.25 292.00
Oats Sep 2020 280.25 280.25 280.25 6.25 274.00
Oats Dec 2020 271.75 271.75 271.75 -1.50 273.25
Wheat Mar 2020 567.50 558.25 560.25 1.50 560.00
Wheat May 2020 570.50 561.50 563.25 1.50 563.25
Wheat Jul 2020 571.50 563.25 565.00 1.50 565.00
Wheat Sep 2020 576.25 568.25 571.00 2.25 570.75
Wheat Dec 2020 584.75 577.50 580.25 2.50 580.00
Spring Wheat Mar 2020 566.25 556.75 557.00 -4.00 557.00
Spring Wheat May 2020 575.25 566.50 567.25 -3.00 567.25
Spring Wheat Jul 2020 582.00 573.50 573.50 -3.75 573.50
Spring Wheat Sep 2020 589.00 581.25 581.25 -4.00 581.25
Spring Wheat Dec 2020 600.00 592.75 592.75 -4.50 592.75
Hard Red Wheat Mar 2020 496.75 483.50 485.25 -0.75 484.50
Hard Red Wheat May 2020 504.75 492.00 493.75 -0.50 493.00
Hard Red Wheat Jul 2020 511.50 499.50 501.25 unch 500.50
Hard Red Wheat Sep 2020 518.25 507.00 508.75 0.75 508.00
Hard Red Wheat Dec 2020 527.75 517.00 519.00 0.75 518.50
Live Cattle (Pit) Feb 2020 125.78 125.78 125.78 -0.15 125.78
Live Cattle (Pit) Apr 2020 126.48 126.48 126.48 -0.70 126.48
Live Cattle (Pit) Jun 2020 118.70 118.70 118.70 -0.20 118.70
Feeder Cattle (Pit) Jan 2020 144.65 144.65 144.65 -0.67 144.65
Feeder Cattle (Pit) Mar 2020 143.73 143.73 143.73 -0.50 143.73
Feeder Cattle (Pit) Apr 2020 146.50 146.50 146.50 -0.25 146.50
Lean Hogs (Pit) Feb 2020 71.55 71.55 71.55 0.13 71.55
Lean Hogs (Pit) Apr 2020 78.00 78.00 78.00 0.08 78.00
Lean Hogs (Pit) May 2020 84.38 84.38 84.38 0.33 84.38

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