Canola stronger, but wheat drops

Winnipeg – ICE Futures canola contracts were stronger on Wednesday, as improving crush margins and chart-based speculative buying provided support.

Chicago Board of Trade soyoil futures were up sharply on the day, while the Canadian dollar fell below 76 U.S. cents. Crush margins were supported as a result, which underpinned the canola market.

However, the large stocks reported by Statistics Canada on Tuesday remained a bearish influence in the background.

Traders were also cautious ahead of a number of key reports due out from the United States Department of Agriculture on Friday.

About 17,533 canola contracts traded on Wednesday, which compares with Tuesday when 12,867 contracts changed hands. Spreading accounted for 13,806 of the contracts traded.

SOYBEAN futures settled with small gains, after trading to both sides of unchanged. Soyoil led to the upside in the soy complex, with soymeal softer in the most active months.

The United States Department of Agriculture reported flash sales of nearly 600,000 tonnes of soybeans to China this morning, with additional business of 182,000 tonnes to other unknown destinations.

Dryness concerns and declining production estimates out of Brazil also provided some support.

However, the harvest is running ahead of normal in the South American country which kept a lid on the upside.

Positioning ahead of a slew of USDA reports out on Friday was a feature.

Corn futures finished with small losses, as traders adjusted positions ahead of Friday’s USDA reports.

U.S. ethanol production came in at 967,000 barrels per day in the latest weekly report. That put some pressure on the corn market, as it was down from the previous week and seen as a sign of declining demand for corn from the sector.

Wheat futures were lower in the most active months at Wednesday’s close. Friday’s USDA reports will include winter wheat acreage estimates, which could provide some direction for the futures. Average trade guesses are calling for a slightly smaller acreage base on the year.

Quarterly stocks numbers will also be released, and should provide a better picture of usage and export movement to date.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 35 cents at US$54.01 per barrel.

In the afternoon, the Canadian dollar was trading around US75.82 cents, up from 76.14 cents the previous trading day. The U.S. dollar was C$1.3190.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 19 484.80s +2.20 +0.46%

Canola May 19 492.80s +2.30 +0.47%

Canola Jul 19 500.20s +2.60 +0.52%

Canola Nov 19 498.10s +3.20 +0.65%

Canola Jan 20 502.30s +2.60 +0.52%

 

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 19 921-6s +1-4 +0.16%

Soybean May 19 935-6s +1-4 +0.16%

Soybean Jul 19 949-2s +1-6 +0.18%

Soybean Aug 19 954-4s +2-0 +0.21%

Soybean Sep 19 956-4s +2-0 +0.21%

 

Soybean Meal Mar 19 309.0s -0.5 -0.16%

Soybean Meal May 19 313.0s -0.5 -0.16%

Soybean Meal Jul 19 316.9s -0.6 -0.19%

 

Soybean Oil Mar 19 30.90s +0.52 +1.71%

Soybean Oil May 19 31.20s +0.52 +1.69%

Soybean Oil Jul 19 31.49s +0.51 +1.65%

 

Corn Mar 19 380-0s -0-6 -0.20%

Corn May 19 388-0s -1-0 -0.26%

Corn Jul 19 395-6s -0-6 -0.19%

Corn Sep 19 398-4s -0-4 -0.13%

Corn Dec 19 403-0s -0-4 -0.12%

 

Oats Mar 19 287-4s -3-6 -1.29%

Oats May 19 288-6s -2-4 -0.86%

Oats Jul 19 288-4s -1-4 -0.52%

Oats Sep 19 280-6s -0-2 -0.09%

Oats Dec 19 274-6s +0-4 +0.18%

 

Wheat Mar 19 526-0s -1-2 -0.24%

Wheat May 19 528-6s -0-4 -0.09%

Wheat Jul 19 532-2s +1-4 +0.28%

Wheat Sep 19 538-6s +2-2 +0.42%

Wheat Dec 19 550-4s +2-6 +0.50%

 

Minneapolis

Spring Wheat Mar 19 573-2s -1-6 -0.30%

Spring Wheat May 19 576-0s -2-4 -0.43%

Spring Wheat Jul 19 582-2s -2-6 -0.47%

Spring Wheat Sep 19 587-6s -2-2 -0.38%

Spring Wheat Dec 19 599-0s -1-6 -0.29%

 

Kansas City

Hard Red Wheat Mar 19 509-2s -2-0 -0.39%

Hard Red Wheat May 19 514-6s -1-6 -0.34%

Hard Red Wheat Jul 19 522-2s +0-6 +0.14%

Hard Red Wheat Sep 19 530-6s +2-2 +0.43%

Hard Red Wheat Dec 19 545-0s +3-0 +0.55%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 19 126.400s -0.300 -0.24%

Live Cattle Apr 19 127.150s -0.475 -0.37%

Live Cattle Jun 19 117.225s -0.175 -0.15%

 

Feeder Cattle Mar 19 143.175s -0.650 -0.45%

Feeder Cattle Apr 19 144.850s -0.600 -0.41%

Feeder Cattle May 19 145.525s -0.525 -0.36%

 

Lean Hogs Feb 19 55.925s -0.500 -0.89%

Lean Hogs Apr 19 60.900s -0.700 -1.14%

Lean Hogs May 19 68.375s -0.350 -0.51%

 

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