Canola strong despite dryness

By Phil Franz-Warkentin, Commodity News Service Canada

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were stronger on Tuesday, with weakness in the Canadian dollar behind some of the strength.

Dryness concerns across much of the Prairies were also supportive. Many areas are in need of moisture, but there is little in the nearby forecasts.

A lack of significant farmer selling added to the firmer tone, as producers remain busy with spring seeding.

However, losses in Chicago Board of Trade soyoil and soymeal futures put some pressure on values. Large old crop supplies and expectations for record large acres this year also weighed on prices, according to participants.

About 11,769 canola contracts traded, which compares with Monday when 11,856 contracts changed hands. Spreading accounted for 3,904 of the contracts traded.

SOYBEAN futures traded to both sides of unchanged on Tuesday, but settled with small gains.

Crushers processed 161 million bushels of soybeans in the United States in April, which was a record for the month, according to a report from the National Oilseed Processors Association. The active crush pace was expected, but it saw soyoil stocks climb to 2.092 billion pounds which topped market forecasts and weighed on prices.

The good seeding pace across the country also put some pressure on values, with the U.S. Department of Agriculture reporting 35 per cent of intended soybean acres were in the ground as of this past Sunday. That’s well ahead of the average for this time of year of 26 per cent. Emergence was pegged at 10 per cent, which compares with the six per cent normal for this time of year.

While attention is largely on North American production, the harvest is still ongoing in Argentina and another downward revision to the production estimates out of that country provided some support.

CORN futures were stronger, recovering off of nearby lows as chart-based speculative buying provided support.

U.S. farmers made good progress seeding corn over the past week, with 62 per cent of the crop now in the ground. That’s only one point behind the average.

WHEAT futures were steady to higher. U.S. spring wheat was 58 per cent seeded in the latest weekly report. That was up by 28 points from the previous week, but still off the 67 per cent average for this time of year.

U.S. winter wheat condition ratings were mixed depending on the location over the past week, but generally showed some small improvement overall.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 35 cents at US$71.31 per barrel.

In the afternoon, the Canadian dollar was trading around US77.67 cents, down from 78.10 cents the previous trading day. The U.S. dollar was C$1.2875.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 18 533.50s +1.30 +0.24%

Canola Nov 18 521.00s +1.50 +0.29%

Canola Jan 19 525.60s +1.50 +0.29%

Canola Mar 19 528.20s +1.70 +0.32%

Canola May 19 529.00s +1.10 +0.21%

 

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 Jul 18 1018-6s +1-0 +0.10%

Soybeans Aug 18 1022-0s +1-0 +0.10%

Soybeans Sep 18 1022-6s +2-0 +0.20%

Soybeans Nov 18 1024-6s +1-4 +0.15%

Soybeans Jan 19 1028-4s +0-6 +0.07%

 

Soybean Meal Jul 18 382.3s -5.3 -1.37%

Soybean Meal Aug 18 380.1s -4.3 -1.12%

Soybean Meal Sep 18 378.4s -3.7 -0.97%

 

Soybean Oil Jul 18 31.12s -0.13 -0.42%

Soybean Oil Aug 18 31.23s -0.12 -0.38%

Soybean Oil Sep 18 31.36s -0.13 -0.41%

 

Corn Jul 18 402-2s +5-6 +1.45%

Corn Sep 18 410-4s +5-6 +1.42%

Corn Dec 18 419-2s +5-0 +1.21%

Corn Mar 19 427-2s +4-2 +1.00%

Corn May 19 431-6s +3-6 +0.88%

 

Oats Jul 18 240-2s +1-0 +0.42%

Oats Sep 18 246-4s +1-0 +0.41%

Oats Dec 18 256-6s +1-0 +0.39%

Oats Mar 19 261-0s +1-2 +0.48%

Oats May 19 264-2s +1-2 +0.48%

 

Wheat Jul 18 493-4s +2-2 +0.46%

Wheat Sep 18 509-6s +1-6 +0.34%

Wheat Dec 18 531-4s +1-2 +0.24%

Wheat Mar 19 549-2s +0-6 +0.14%

Wheat May 19 559-0s unch unch

 

Minneapolis

Spring Wheat Jul 18 606-2s +4-6 +0.79%

Spring Wheat Sep 18 613-2s +4-4 +0.74%

Spring Wheat Dec 18 625-0s +4-4 +0.73%

Spring Wheat Mar 19 636-4s +4-4 +0.71%

Spring Wheat May 19 643-6s +3-6 +0.59%

 

Kansas City

Hard Red Wheat Jul 18 509-6s unch unch

Hard Red Wheat Sep 18 528-4s unch unch

Hard Red Wheat Dec 18 554-6s +0-4 +0.09%

Hard Red Wheat Mar 19 572-4s +1-0 +0.17%

Hard Red Wheat May 19 582-4s +1-2 +0.22%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 18 102.975s -1.650 -1.58%

Live Cattle Aug 18 100.400s -1.500 -1.47%

Live Cattle Oct 18 103.750s -1.525 -1.45%

 

Feeder Cattle May 18 133.550s -1.850 -1.37%

Feeder Cattle Aug 18 138.450s -1.925 -1.37%

Feeder Cattle Sep 18 138.950s -1.850 -1.31%

 

Lean Hogs Jun 18 74.725s -1.425 -1.87%

Lean Hogs Jul 18 77.700s -1.025 -1.30%

Lean Hogs Aug 18 77.450s -0.925 -1.18%

 

About the author

By Phil Franz-Warkentin Commodity News Service Canada's recent articles

Comments

Copyright © 2016. All market data is provided by Barchart Market Data Solutions. Futures: at least 10 minute delayed except as noted. 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.
CME groupICE

explore

Stories from our other publications