Canola stays within range; wheat weaker

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Thursday, as the trend of higher soyoil prices and a lower Canadian dollar were reversed.

Soyoil lost about a half of a U.S. cent per pound today on the Chicago Board of Trade.

The loonie was stronger at mid-afternoon Thursday at 75.30 U.S. cents, after closing Wednesday at 75.17.

However, canola prices have remained range-bound with shifts of C$3 to C$5 per tonne either way, according to a trader. He said speculators and commercial traders have been quite reluctant to push bids to a great extent.

A number of economic sectors, including agriculture, oil, and manufacturing, called on the federal government to intervene in the strike at Canadian National Railway. About 3,200 members of the Teamsters Canada Rail Conference have been on strike for three days. Negotiations between the union and CN are continuing, and the feds stated they are not prepared at this time to interfere with the collective bargaining process.

There were 16,281 contracts traded on Thursday, which compares with Wednesday when 17,618 contracts changed hands. Spreading accounted for 10,116 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jan 463.20 dn 3.30
Mar 472.20 dn 3.10
May 480.10 dn 2.80
Jul 486.50 dn 3.00

SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Thursday, due to developments in United States/China trade talks.

With the growing perception of trade talks faltering, China stated today it will do whatever it can to come to agreement with the U.S. This included inviting top U.S. trade officials to Beijing for face-to-face talks. The U.S. countered by saying their trade negotiators would travel to China only if they can obtain firm agreements on agricultural purchases, intellectual property and technology transfers. China has been balking at importing a set amount of U.S. ag products, but President Donald Trump warned he’s prepared to slap more tariffs on Chinese imports, which are scheduled for Dec. 15.
Wet weather for the U.S. Northern Plains tempered losses today. The precipitation will give farmers a hard time trying to finish off their soybean harvest by Dec. 1.

Malaysian palm oil closed at their highest levels since November 2017, and that has been pushing up Chicago soyoil. Malaysia reported its palm oil stocks for September were at 2.2 million tonnes after a reduction of 300,000 tonnes. Dry conditions in Malaysia, as well as Indonesia, have reduced palm oil production.

The U.S. Department of Agriculture (USDA) said in its export sales report for the week ended Nov. 14 that soybeans had net sales of almost 1.517 million tonnes. That was above market expectations, as well as up 22 per cent compared to the previous week and 39 per cent above the four-week average.

Soymeal export sales came in at 196,400 tonnes, which was short of market predictions and 43 percent less than the previous week, as well as 12 percent under the average. Soyoil saw 39,100 tonnes in export sales.

CORN futures were higher on Thursday with speculation that demand may soon increase.

There have been reports of U.S. farmers holding off on harvesting the rest of their corn for the time being, to let it dry out. However, the forecast has called for warmer temperatures, which will thaw out frozen ground and make fields muddy again.

The International Grains Council (IGC) issued its November report and increased its global corn estimate 1.103 billion tonnes. That’s a gain of 5 million tonnes from the IGC’s October forecast.

WHEAT futures were weaker on Thursday.

The USDA reported export sales of 437,700 tonnes of 2019/20 wheat, which was near the top end of trade expectations. The week’s sales were an 83 per cent jump from the previous week and were 29 per cent above the four-week average.

In International purchases, Japan bought nearly 120,000 tonnes of wheat, with more than half to come from the U.S. and the remainder from Canada. Algeria acquired 500,000 tonnes of wheat, most likely

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up $1.57 at US$58.58 per barrel.

In the afternoon, the Canadian dollar was trading around US75.27 cents, up from 75.17 cents the previous trading day. The U.S. dollar was C$1.3285.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 20 463.20s -3.30 -0.71%

Canola Mar 20 472.20s -3.10 -0.65%

Canola May 20 480.10s -2.80 -0.58%

Canola Jul 20 486.50s -3.00 -0.61%

Canola Nov 20 485.80s -3.20 -0.65%

 

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 Jan 20 901-0s -4-0 -0.44%

Soybean Mar 20 915-2s -3-6 -0.41%

Soybean May 20 928-4s -3-4 -0.38%

Soybean Jul 20 940-2s -3-4 -0.37%

Soybean Aug 20 944-0s -3-4 -0.37%

 

Soybean Meal Dec 19 301.0s +1.2 +0.40%

Soybean Meal Jan 20 303.2s +1.2 +0.40%

Soybean Meal Mar 20 305.8s +1.1 +0.36%

 

Soybean Oil Dec 19 30.69s -0.51 -1.63%

Soybean Oil Jan 20 30.88s -0.53 -1.69%

Soybean Oil Mar 20 31.16s -0.53 -1.67%

 

Corn Dec 19 368-4s +1-6 +0.48%

Corn Mar 20 379-0s +1-6 +0.46%

Corn May 20 384-2s +1-2 +0.33%

Corn Jul 20 390-0s +0-6 +0.19%

Corn Sep 20 389-6s +0-2 +0.06%

 

Oats Dec 19 313-4s -0-2 -0.08%

Oats Mar 20 316-4s +4-6 +1.52%

Oats May 20 311-2s +4-4 +1.47%

Oats Jul 20 300-0s +2-2 +0.76%

Oats Sep 20 284-4s +0-4 +0.18%

 

Wheat Dec 19 509-0s -6-4 -1.26%

Wheat Mar 20 512-0s -6-6 -1.30%

Wheat May 20 515-6s -6-0 -1.15%

Wheat Jul 20 517-6s -5-4 -1.05%

Wheat Sep 20 525-0s -5-2 -0.99%

 

Minneapolis

Spring Wheat Dec 19 495-2s -6-0 -1.20%

Spring Wheat Mar 20 509-2s -6-2 -1.21%

Spring Wheat May 20 519-4s -6-2 -1.19%

Spring Wheat Jul 20 530-2s -5-6 -1.07%

Spring Wheat Sep 20 541-2s -5-2 -0.96%

 

Kansas City

Hard Red Wheat Dec 19 421-0s -5-0 -1.17%

Hard Red Wheat Mar 20 428-4s -4-4 -1.04%

Hard Red Wheat May 20 435-4s -4-0 -0.91%

Hard Red Wheat Jul 20 442-6s -4-0 -0.90%

Hard Red Wheat Sep 20 452-0s -4-2 -0.93%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 19 119.325s +0.025 +0.02%

Live Cattle Feb 20 125.050s -0.425 -0.34%

Live Cattle Apr 20 125.775s -0.475 -0.38%

 

Feeder Cattle Nov 19 145.525s -1.075 -0.73%

Feeder Cattle Jan 20 142.600s -1.475 -1.02%

Feeder Cattle Mar 20 142.800s -1.350 -0.94%

 

Lean Hogs Dec 19 60.650s +0.200 +0.33%

Lean Hogs Feb 20 67.450s +0.675 +1.01%

Lean Hogs Apr 20 74.100s +1.175 +1.61%

 

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