By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were stronger on Monday, taking some direction from the Chicago Board of Trade soy complex.
With little fresh news of its own canola largely tracked the outside markets, with the strength in soybeans and a weaker tone in the Canadian dollar lending some support, according to participants.
Speculators covering short positions were behind much of the buying interest, with only routine commercial business taking place in the background.
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However, ample old crop supplies and mounting expectations for record canola seedings this spring kept a lid on the upside.
About 21,304 canola contracts traded on Monday, which compares with Friday when 11,282 contracts changed hands. Spreading accounted for 16,748 of the contracts traded.
Soybean futures at the Chicago Board of Trade moved higher on Monday, with the South American weather situation at the forefront of the market. Forecasts are now calling for hotter temperatures in dry areas of Argentina.
Advances in soymeal were also supportive for soybeans in general, with the strength there due to lower than normal protein levels in the United States crop.
Chart-based buying contributed to the advances, as beans recovered after Friday’s declines.
However, large world supplies tempered the upside.
Corn futures settled with small gains, as solid export demand and the South American weather uncertainty lent some support.
Speculative short-covering was another feature in corn, as fund traders continued buying back some of their large net short positions.
U.S. wheat futures were mixed, with gains in the Chicago and Kansas City contracts and losses in Minneapolis spring wheat.
Persistent dryness concerns across the U.S. winter wheat belt kept a bid in the market, with advances above nearby chart resistance levels bringing in some additional buying interest.
Recent weakness in the U.S. dollar index also remained supportive.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were down 58 cents at US$65.56 per barrel.
In the afternoon, the Canadian dollar was trading around US81.08 cents, down from 81.14 cents the previous trading day. The U.S. dollar was C$1.2333.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 18 496.20s +2.50 +0.51%
Canola May 18 503.20s +2.90 +0.58%
Canola Jul 18 508.60s +3.20 +0.63%
Canola Nov 18 504.90s +2.90 +0.58%
Canola Jan 19 510.00s +2.90 +0.57%
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 18 991-4s +6-0 +0.61%
Soybeans May 18 1002-6s +5-6 +0.58%
Soybeans Jul 18 1012-4s +6-0 +0.60%
Soybeans Aug 18 1014-2s +5-4 +0.55%
Soybeans Sep 18 1008-6s +4-4 +0.45%
Soybean Meal Mar 18 337.4s +1.7 +0.51%
Soybean Meal May 18 340.8s +2.0 +0.59%
Soybean Meal Jul 18 343.1s +2.2 +0.65%
Soybean Oil Mar 18 32.87s +0.08 +0.24%
Soybean Oil May 18 33.07s +0.08 +0.24%
Soybean Oil Jul 18 33.27s +0.08 +0.24%
Corn Mar 18 358-6s +2-2 +0.63%
Corn May 18 367-0s +2-0 +0.55%
Corn Jul 18 375-0s +1-6 +0.47%
Corn Sep 18 382-4s +1-6 +0.46%
Corn Dec 18 391-4s +2-0 +0.51%
Oats Mar 18 269-4s +3-4 +1.32%
Oats May 18 262-4s +3-4 +1.35%
Oats Jul 18 263-0s +2-6 +1.06%
Oats Sep 18 264-6s +2-6 +1.05%
Oats Dec 18 263-0s +3-0 +1.15%
Wheat Mar 18 449-2s +8-2 +1.87%
Wheat May 18 462-0s +8-2 +1.82%
Wheat Jul 18 474-4s +8-0 +1.71%
Wheat Sep 18 488-2s +8-0 +1.67%
Wheat Dec 18 507-0s +8-2 +1.65%
Minneapolis
Spring Wheat Mar 18 613-6s -0-6 -0.12%
Spring Wheat May 18 623-2s -0-6 -0.12%
Spring Wheat Jul 18 631-2s +0-4 +0.08%
Spring Wheat Sep 18 626-6s +0-2 +0.04%
Spring Wheat Dec 18 636-6s -0-4 -0.08%
Kansas City
Hard Red Wheat Mar 18 453-0s +10-0 +2.26%
Hard Red Wheat May 18 467-6s +10-0 +2.18%
Hard Red Wheat Jul 18 484-0s +9-4 +2.00%
Hard Red Wheat Sep 18 500-0s +9-0 +1.83%
Hard Red Wheat Dec 18 520-0s +8-6 +1.71%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 18 125.700s +1.100 +0.88%
Live Cattle Apr 18 125.000s +0.375 +0.30%
Live Cattle Jun 18 116.350s +0.175 +0.15%
Feeder Cattle Mar 18 147.000s +0.275 +0.19%
Feeder Cattle Apr 18 147.300s +0.075 +0.05%
Feeder Cattle May 18 146.900s -0.150 -0.10%
Lean Hogs Feb 18 72.400s +0.125 +0.17%
Lean Hogs Apr 18 73.425s -0.375 -0.51%
Lean Hogs May 18 78.675s -0.200 -0.25%
