WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Friday, due to sharp declines in Chicago soyoil.
A trader explained that soyoil is vulnerable to changes in the stock markets and in crude oil prices. Pushed by fears over the coronavirus, the North American stocks were down 2.6 to 3.7 per cent of their values at mid-afternoon, while benchmark crude oil prices plunged more than US$4.50 per barrel.
There were also steep declines in European rapeseed, but small gains in Malaysian palm oil.
By mid-afternoon Friday, the Canadian dollar was slightly lower at 74.49 U.S. cents compared to Thursday’s close of 74.54.
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U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
There were 15,124 contracts traded on Friday, which compares with Thursday when 10,999 contracts changed hands. Spreading accounted for 11,506 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 459.70 dn 3.80
Jul 468.00 dn 3.60
Nov 476.70 dn 3.60
Jan 483.30 dn 3.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Friday, as fears toward the COVID-19 coronavirus continued to dominate the markets.
The United States Department of Agriculture (USDA) reported exports of soybeans in January were almost 195.5 million bushels. While about 4.5 per cent lower than December’s exports, it was nearly 10.2 per cent more than in January 2019. China was the top destination at approximately 78.7 million bushels.
With the USDA scheduled to issue its World Agricultural Supply and Demand Estimates (WASDE) on March 10, average trade predictions have forecast the U.S. soybean carryout to rise to 946.7 million bushels. Also, the global soybean carryout is expected to increase 99.3 million tonnes.
Reports stated on Friday that the Chinese government granted a number of tariff exemptions to soybean crushers wanting to import U.S. soybeans. The move could be a signal that China is about to begin purchasing its US$40 billion in U.S. agricultural goods as outlined in the Phase One trade agreement.
Farm groups in Argentina will lead a four-day strike next week in protest of the government increasing the soybean export levy to 33 per cent. Also, a group of soybean crushers in Argentina said the levy increase will hurt the country’s ability to compete in the global soy market. President Alberto Fernandez wants to use the levy hike to help pay down Argentina’s debt and to have farmers switch to growing corn.
CORN futures were lower on Friday, following soybeans.
This morning, the USDA issued notices of private sales of 211,336 tonnes of corn to unknown destinations and 234,688 tonnes to Japan.
The USDA reported monthly exports in January were 98.2 million bushels. Also, distiller dried grain (DDG) exports set a new January record of 976,688 tonnes exported. Ethanol exports in January were 151.2 million gallons.
Ahead of Tuesday’s WASDE, the markets expect the U.S. corn carryout to increase to almost 1.9 billion bushels. The global corn carryout was projected to rise to 297.3 million tonnes.
WHEAT futures were mixed on Friday, with losses in Chicago, unchanged in Kansas City and a gain in Minneapolis.
The USDA said January wheat exported amounted to about 1.9 million tonnes, which was down 2.8 per cent from December and 6.5 per cent lower comparted to January 2019.
Average trade guesses for the U.S. wheat carryout in the March WASDE was at 946.7 million bushels. The global wheat carryout was forecast to be 288.4 million tonnes, up by 400,000 from February’s report.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was down $4.62 cents at US$41.28 per barrel. (Drop largely due to contract changes from March to April.)
In the afternoon, the Canadian dollar was trading around US74.51 cents, down from 74.54 cents the previous trading day. The U.S. dollar was C$1.3421.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 20 460.00s -10.70 -2.27%
Canola May 20 459.70s -3.80 -0.82%
Canola Jul 20 468.00s -3.60 -0.76%
Canola Nov 20 476.70s -3.60 -0.75%
Canola Jan 21 483.30s -3.00 -0.62%
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 Mar 20 883-2s -5-6 -0.65%
Soybean May 20 891-2s -5-6 -0.64%
Soybean Jul 20 900-0s -5-0 -0.55%
Soybean Aug 20 901-6s -4-6 -0.52%
Soybean Sep 20 901-6s -4-0 -0.44%
Soybean Meal Mar 20 301.3s +0.9 +0.30%
Soybean Meal May 20 305.1s +1.2 +0.39%
Soybean Meal Jul 20 309.4s +1.0 +0.32%
Soybean Oil Mar 20 28.48s -0.62 -2.13%
Soybean Oil May 20 28.75s -0.64 -2.18%
Soybean Oil Jul 20 29.10s -0.65 -2.18%
Corn Mar 20 377-2s -7-2 -1.89%
Corn May 20 376-0s -5-6 -1.51%
Corn Jul 20 379-2s -4-4 -1.17%
Corn Sep 20 377-4s -2-4 -0.66%
Corn Dec 20 381-4s -2-2 -0.59%
Oats Mar 20 261-6s -2-2 -0.85%
Oats May 20 268-2s -2-2 -0.83%
Oats Jul 20 269-2s -2-4 -0.92%
Oats Sep 20 261-6s -2-4 -0.95%
Oats Dec 20 260-6s -2-4 -0.95%
Wheat Mar 20 521-2s -3-0 -0.57%
Wheat May 20 515-6s -3-0 -0.58%
Wheat Jul 20 516-6s -2-6 -0.53%
Wheat Sep 20 524-0s -2-4 -0.47%
Wheat Dec 20 535-2s -2-4 -0.46%
Minneapolis
Spring Wheat Mar 20 509-0s +2-6 +0.54%
Spring Wheat May 20 525-2s +3-2 +0.62%
Spring Wheat Jul 20 535-0s +3-2 +0.61%
Spring Wheat Sep 20 544-2s +3-2 +0.60%
Spring Wheat Dec 20 558-0s +2-6 +0.50%
Kansas City
Hard Red Wheat Mar 20 439-2s unch unch
Hard Red Wheat May 20 446-2s unch unch
Hard Red Wheat Jul 20 453-4s unch unch
Hard Red Wheat Sep 20 463-0s unch unch
Hard Red Wheat Dec 20 476-0s unch unch
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 20 105.750s -2.900 -2.67%
Live Cattle Jun 20 100.025s -2.625 -2.56%
Live Cattle Aug 20 101.075s -2.700 -2.60%
Feeder Cattle Mar 20 130.700s -2.925 -2.19%
Feeder Cattle Apr 20 130.050s -3.600 -2.69%
Feeder Cattle May 20 131.150s -3.300 -2.45%
Lean Hogs Apr 20 65.925s +0.550 +0.84%
Lean Hogs May 20 71.375s +0.150 +0.21%
Lean Hogs Jun 20 79.750s +0.375 +0.47%
