Winnipeg – ICE Futures canola contracts were stronger on Friday, as speculative short-covering and end user bargain-hunting provided some support in light trade ahead of the weekend.
After dropping sharply earlier in the week, canola was looking cheap and due for a correction, according to participants.
However, the bearish underlying fundamentals tempered the upside. Political tensions between China and Canada weighed on prices, as traders remain concerned over declining demand from the major customer.
Losses in Chicago Board of Trade soybeans also put some pressure on values.
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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.
About 11,933 canola contracts traded on Friday, which compares with Thursday when 19,750 contracts changed hands. Spreading accounted for 7,394 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday.
The United States Department of Agriculture lowered its soybean carryout projection for the current marketing year by 10 million bushels, to 900 million bushels. That was in line with trade expectations but still roughly double the ending stocks from the previous year.
The agency pegged Brazil’s soybean crop at 116.5 million tonnes, which would be down by half a million tonnes from the February estimate and 4.3 million below the previous year’s level.
The USDA announced private export sales of 664,000 tonnes of soybeans to China this morning, confirming rumours from Thursday afternoon.
While the fresh business was supportive, the continued lack of progress on trade negotiations between the U.S. and China kept the overall bias pointed lower. A planned meeting between the leaders of the two countries is now reportedly being pushed back.
CORN futures were weaker on the day. The USDA raised its projection for corn ending stocks to 1.835 billion tonnes, topping trade estimates that had generally called for a steady reading from the 1.735 billion forecast in February.
However, the world corn carryout was lowered by about a million tonnes, to 308.53 million tonnes.
WHEAT futures were mixed, with losses in Minneapolis spring wheat and gains in the winter wheats as the spreads saw some adjustment ahead of the weekend.
U.S. wheat ending stocks were raised by 45 million bushels, to 1.055 billion, topping trade expectations.
The USDA raised the world wheat carryout by three million tonnes, to 270.53 million tonnes. That was still well below the 280 million tonne carryout from the previous year.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was down 59 cents at US$56.07 per barrel.
In the afternoon, the Canadian dollar was trading around US74.50 cents, up from 74.42 cents the previous trading day. The U.S. dollar was C$1.3422.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 19 452.30s +1.10 +0.24%
Canola May 19 457.30s +1.10 +0.24%
Canola Jul 19 466.10s +1.10 +0.24%
Canola Nov 19 479.40s +0.80 +0.17%
Canola Jan 20 486.00s +0.70 +0.14%
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 19 883-6s -7-0 -0.79%
Soybean May 19 895-6s -6-6 -0.75%
Soybean Jul 19 909-6s -6-6 -0.74%
Soybean Aug 19 916-0s -6-6 -0.73%
Soybean Sep 19 921-0s -6-2 -0.67%
Soybean Meal Mar 19 299.1s -2.9 -0.96%
Soybean Meal May 19 303.7s -2.6 -0.85%
Soybean Meal Jul 19 307.6s -2.5 -0.81%
Soybean Oil Mar 19 29.39s -0.02 -0.07%
Soybean Oil May 19 29.65s -0.02 -0.07%
Soybean Oil Jul 19 29.96s -0.03 -0.10%
Corn Mar 19 354-6s -1-2 -0.35%
Corn May 19 364-2s -1-0 -0.27%
Corn Jul 19 373-4s -0-6 -0.20%
Corn Sep 19 380-2s -0-6 -0.20%
Corn Dec 19 388-4s -0-4 -0.13%
Oats Mar 19 254-2s -1-6 -0.68%
Oats May 19 263-4s -2-0 -0.75%
Oats Jul 19 263-6s -1-4 -0.57%
Oats Sep 19 261-6s -0-4 -0.19%
Oats Dec 19 257-0s unch unch
Wheat Mar 19 432-6s +1-2 +0.29%
Wheat May 19 439-4s +1-2 +0.29%
Wheat Jul 19 447-4s +2-4 +0.56%
Wheat Sep 19 457-0s +2-2 +0.49%
Wheat Dec 19 472-0s +1-6 +0.37%
Minneapolis
Spring Wheat Mar 19 555-6s -1-2 -0.22%
Spring Wheat May 19 549-2s -3-6 -0.68%
Spring Wheat Jul 19 551-2s -2-6 -0.50%
Spring Wheat Sep 19 557-6s -2-6 -0.49%
Spring Wheat Dec 19 570-2s -2-6 -0.48%
Kansas City
Hard Red Wheat Mar 19 424-6s +4-4 +1.07%
Hard Red Wheat May 19 430-6s +3-2 +0.76%
Hard Red Wheat Jul 19 440-2s +3-2 +0.74%
Hard Red Wheat Sep 19 453-4s +2-6 +0.61%
Hard Red Wheat Dec 19 473-2s +3-2 +0.69%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 19 129.675s +0.725 +0.56%
Live Cattle Jun 19 120.950s +0.600 +0.50%
Live Cattle Aug 19 117.175s +0.650 +0.56%
Feeder Cattle Mar 19 143.925s +1.025 +0.72%
Feeder Cattle Apr 19 147.700s +1.700 +1.16%
Feeder Cattle May 19 148.525s +1.450 +0.99%
Lean Hogs Apr 19 60.550s +2.825 +4.89%
Lean Hogs May 19 68.925s +2.350 +3.53%
Lean Hogs Jun 19 78.175s +2.650 +3.51%
