Canola weaker despite weather premium; wheat mixed

WINNIPEG – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Friday, due to what a Winnipeg-based trader deemed to be “regular activity” along with lower soybean prices on the Chicago Board of Trade.

The dry conditions across most of Western Canada have meant canola is getting a weather premium. Rain was forecast this weekend for the Prairies, with the northern regions likely receiving more precipitation than in the south.

There have been reports that trade talks between Canada and China have begun. Also, Canadian Prime Minister Justin Trudeau wants to meet with Chinese President Xi Jinping at the G20 Summit in Japan this month.

Also regarding Canada and China, Canadian wheat sales to China hit a 14-year high. Despite tensions between the two, Canada sold about 1.36 million tonnes of wheat to China. That figure was also double from last year’s sales.

There were 15,392 contracts traded on Friday, which compares with Thursday when 22,111 contracts changed hands. Spreading accounted for 11,094 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 453.00 dn 1.70
Nov 464.70 dn 2.40
Jan 470.40 dn 2.80
Mar 475.60 dn 3.20

SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Friday, with contracts down by about 12 cents per bushel. Soyoil lost more than a third of a cent per pound and soymeal dropped US$3.60 per hundredweight.

The markets in the United States predicted soybean planting in the country could be 55 to 59 per cent by June 9. The U.S. Department of Agriculture issues its weekly crop progress report on June 10.

The U.S. and China were back talking trade. Chinese President Xi Jinping called U.S. President Donald Trump a “friend” and said a trade deal between the two countries is possible.

Also, shipments of U.S. soybeans resumed this week. China had 7 million tonnes of soybeans in the country, but that dropped to approximately 6.22 million tonnes this week. Transportation problems in the U.S., due to high water levels, made shipments difficult.

The Buenos Aires Grain Exchange (BAGE) reported Argentina’s soybean harvest was 96 per cent complete, slightly ahead of the pace this time last year.

CORN futures were weaker on Friday, by four to five cents per bushel due to speculation regarding planting progress.

Market projections for corn planting were 80 to 82 per cent complete.

Based on a survey of 1,000 U.S. farmers, Farm Journal reported 20 per cent of farmers would Prevent Plant half of their corn acres.

In light of President Trump’s threat to impose a five per cent tariff on Mexican imports, reports stated Mexico will exclude corn from any retaliatory measures. In 2017/18, Mexico purchased more than 15.5 million tonnes of U.S. corn.

The BAGE said Argentina’s corn harvest was more than 39 per cent complete, which was somewhat behind the five-year average of nearly 43 per cent.

Reports stated Zimbabwe will issue a tender for 750,000 tonnes of corn. No dates for delivery have been scheduled.

WHEAT futures were mixed on Friday, with gains of three cents per bushel in Minneapolis, with losses of four to six cents in Chicago and Kansas City. Bids were influenced by trade data and recent drier weather.

Dry conditions in Australia, Canada, Russia, and in other regions of the world have been providing support for wheat bids, as have wet conditions in the U.S.

The BAGE reported Argentina’s wheat planting was almost 20 per cent complete, ahead of the five-year average of nearly 16 per cent.

FranceAgriMer reported France’s soft wheat crop to be 80 per cent good to excellent condition, one point more than this time last year.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up $1.40 at US$53.99 per barrel.

In the afternoon, the Canadian dollar was trading around US75.28 cents, up from 74.75 cents the previous trading day. The U.S. dollar was C$1.3283.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 19 453.00s -1.70 -0.37%

Canola Nov 19 464.70s -2.40 -0.51%

Canola Jan 20 470.40s -2.80 -0.59%

Canola Mar 20 475.60s -3.20 -0.67%

Canola May 20 480.50s -3.20 -0.66%

 

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 Jul 19 856-2s -12-4 -1.44%

Soybean Aug 19 863-0s -12-2 -1.40%

Soybean Sep 19 870-0s -12-2 -1.39%

Soybean Nov 19 883-0s -12-2 -1.37%

Soybean Jan 20 896-4s -12-2 -1.35%

 

Soybean Meal Jul 19 312.3s -3.6 -1.14%

Soybean Meal Aug 19 313.6s -3.5 -1.10%

Soybean Meal Sep 19 315.3s -3.5 -1.10%

 

Soybean Oil Jul 19 27.38s -0.38 -1.37%

Soybean Oil Aug 19 27.52s -0.37 -1.33%

Soybean Oil Sep 19 27.63s -0.36 -1.29%

 

Corn Jul 19 415-6s -4-6 -1.13%

Corn Sep 19 424-2s -5-2 -1.22%

Corn Dec 19 433-6s -4-6 -1.08%

Corn Mar 20 442-4s -4-2 -0.95%

Corn May 20 445-6s -4-2 -0.94%

 

Oats Jul 19 296-0s -4-2 -1.42%

Oats Sep 19 285-4s -3-0 -1.04%

Oats Dec 19 280-4s +1-2 +0.45%

Oats Mar 20 282-4s +2-2 +0.80%

Oats May 20 281-4s +3-6 +1.35%

 

Wheat Jul 19 504-4s -5-4 -1.08%

Wheat Sep 19 509-4s -4-6 -0.92%

Wheat Dec 19 522-2s -3-4 -0.67%

Wheat Mar 20 534-0s -2-4 -0.47%

Wheat May 20 540-6s -1-4 -0.28%

 

Minneapolis

Spring Wheat Jul 19 568-6s +3-6 +0.66%

Spring Wheat Sep 19 577-2s +3-0 +0.52%

Spring Wheat Dec 19 587-0s +0-2 +0.04%

Spring Wheat Mar 20 597-6s -1-4 -0.25%

Spring Wheat May 20 604-2s -1-6 -0.29%

 

Kansas City

Hard Red Wheat Jul 19 449-0s -6-2 -1.37%

Hard Red Wheat Sep 19 462-0s -6-4 -1.39%

Hard Red Wheat Dec 19 485-4s -6-2 -1.27%

Hard Red Wheat Mar 20 507-2s -6-2 -1.22%

Hard Red Wheat May 20 522-2s -5-4 -1.04%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 19 106.925s -0.675 -0.63%

Live Cattle Aug 19 103.300s -1.500 -1.43%

Live Cattle Oct 19 104.500s -1.250 -1.18%

 

Feeder Cattle Aug 19 137.250s -2.025 -1.45%

Feeder Cattle Sep 19 137.350s -2.250 -1.61%

Feeder Cattle Oct 19 137.375s -2.375 -1.70%

 

Lean Hogs Jun 19 78.650s -0.725 -0.91%

Lean Hogs Jul 19 83.350s -3.000 -3.47%

Lean Hogs Aug 19 82.625s -3.000 -3.50%

About the author

explore

Stories from our other publications