Canola strengthens with soybean

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were stronger on Thursday, seeing a continuation of their month-long uptrend as supportive technical signals and gains in the Chicago Board of Trade soy complex provided support.

Weakness in the Canadian dollar contributed to the gains, as the currency broke below 78 U.S. cents.

However, increased farmer selling and expectations for increased seeded acres this spring tempered the upside. Transportation delays in Western Canada were also overhanging the market, with a slowdown in country movement putting some pressure on values.

About 17,896 canola contracts traded on Thursday, which compares with Wednesday when 25,469 contracts changed hands. Spreading accounted for 7,426 of the contracts traded.

SOYBEAN futures at the Chicago Board of trade were higher on Thursday, as solid export demand provided support.

The United States Department of Agriculture reported weekly export sales of about 860,000 tonnes, which came in at the high end of market expectations. Additional flash sales of 120,000 tonnes to China and 126,000 tonnes to other unknown destinations were also reported.

The forecasts remain hot and dry across most of the soybean growing regions in Argentina over the next week, and concerns over the declining production prospects there added to the firmer tone.

However, rising production estimates out of Brazil should offset the reductions in Argentina to some extent.

CORN futures were also underpinned by solid export demand, with weekly U.S. corn export sales of 1.7 million tonnes coming in well above trade guesses.

The dryness concerns in Argentina and a rally in U.S. wheat futures were also supportive.

WHEAT futures saw a continuation of yesterday’s sharp advances, with Kansas City hard red winter wheat leading to the upside once again as speculators covered short positions.

Dryness across the southern U.S. Plains remained a key driver, with crop prospects continuing to be revised lower.

Net weekly U.S. wheat export sales of only 191,100 tonnes came in below expectations and tempered the upside.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were down 65 cents at US$60.99 per barrel.

In the afternoon, the Canadian dollar was trading around US78.01 cents, up from 77.91 cents the previous trading day. The U.S. dollar was C$1.2813.

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 18 521.60s +1.30 +0.25%

Canola May 18 525.20s +1.20 +0.23%

Canola Jul 18 530.10s +1.10 +0.21%

Canola Nov 18 517.00s +1.70 +0.33%

Canola Jan 19 521.70s +2.00 +0.38%

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 Mar 18 1057-4s +12-4 +1.20%

Soybeans May 18 1068-0s +12-4 +1.18%

Soybeans Jul 18 1076-4s +12-2 +1.15%

Soybeans Aug 18 1073-6s +10-4 +0.99%

Soybeans Sep 18 1052-6s +7-2 +0.69%

Soybean Meal Mar 18 394.0s -0.2 -0.05%

Soybean Meal May 18 397.2s +2.5 +0.63%

Soybean Meal Jul 18 394.1s +2.0 +0.51%

Soybean Oil Mar 18 32.12s +0.16 +0.50%

Soybean Oil May 18 32.39s +0.16 +0.50%

Soybean Oil Jul 18 32.59s +0.16 +0.49%

Corn Mar 18 378-6s +4-2 +1.13%

Corn May 18 386-2s +4-2 +1.11%

Corn Jul 18 393-4s +4-0 +1.03%

Corn Sep 18 398-6s +3-6 +0.95%

Corn Dec 18 404-6s +3-2 +0.81%

Oats Mar 18 269-0s +6-0 +2.28%

Oats May 18 273-4s +3-2 +1.20%

Oats Jul 18 273-6s +1-0 +0.37%

Oats Sep 18 269-2s +1-0 +0.37%

Oats Dec 18 266-6s +1-0 +0.38%

Wheat Mar 18 505-4s +21-0 +4.33%

Wheat May 18 515-4s +20-4 +4.14%

Wheat Jul 18 528-4s +21-2 +4.19%

Wheat Sep 18 541-6s +20-4 +3.93%

Wheat Dec 18 559-6s +19-0 +3.51%

Minneapolis

Spring Wheat Mar 18 620-0s +14-0 +2.31%

Spring Wheat May 18 634-6s +13-0 +2.09%

Spring Wheat Jul 18 641-4s +10-6 +1.70%

Spring Wheat Sep 18 646-4s +8-6 +1.37%

Spring Wheat Dec 18 652-6s +7-6 +1.20%

Kansas City

Hard Red Wheat Mar 18 531-0s +22-6 +4.48%

Hard Red Wheat May 18 543-4s +21-2 +4.07%

Hard Red Wheat Jul 18 560-0s +21-0 +3.90%

Hard Red Wheat Sep 18 575-6s +21-4 +3.88%

Hard Red Wheat Dec 18 593-6s +20-6 +3.62%

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 18 123.325s +0.050 +0.04%

Live Cattle Jun 18 115.500s -0.100 -0.09%

Live Cattle Aug 18 112.975s unch unch

Feeder Cattle Mar 18 145.050s +0.300 +0.21%

Feeder Cattle Apr 18 146.750s -0.250 -0.17%

Feeder Cattle May 18 148.000s -0.550 -0.37%

Lean Hogs Apr 18 66.975s -0.250 -0.37%

Lean Hogs May 18 74.550s -0.325 -0.43%

Lean Hogs Jun 18 80.075s -0.600 -0.74%

About the author

Comments

Markets at a glance

Copyright © 2018. All market data is provided by Barchart Market Data Solutions. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

explore

Stories from our other publications