Canola weaker on U.S. planting issues

WINNIPEG – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Wednesday, due to planting progress in the United States, according to a Winnipeg-based analyst.

The July canola contract fell C$2.90 at C$450.20 per tonne. The November contract dropped C$3.40 at C$462.90 per tonne.

With a window of a few rain-free days, U.S. farmers were trying to plant as much as they could. That forced prices down on the Chicago Board of Trade and in turn spilled over to canola.

Agriculture and Agri-Food Canada’s Drought Monitor reported 37 per cent of Western Canada is in a moderate to extreme drought. Over the last six months, Western Canada received only 60 per cent of its normal precipitation. Those dry conditions provided support, along with the technical bias, which was pointing to the upside.

There were 14,009 contracts traded on Wednesday, which compares with Tuesday when 13,725 contracts changed hands. Spreading accounted for 7,836 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jul 450.20 dn 2.90
Nov 462.90 dn 3.40
Jan 469.00 dn 3.40
Mar 474.40 dn 3.20

SOYBEAN futures at the Chicago Board of Trade (CBOT) were down on Wednesday as farmers in the U.S. Midwest and Plains have taken advantage of a few rain-free days to plant as much as possible.

An estimate from private consultant Dr. Michael Cordonnier projected the 2019 U.S. soybean crop to be 98 million to 103 million tonnes, on 84 million acres.

The U.S. Department of Agriculture releases its supply and demand report on June 11.

China still has 7 million tonnes of soybeans it has purchased that have not been shipped out of the U.S., due to transportation difficulties in the U.S. and the trade war between the two countries. Reports stated the soybeans will be stored for the meantime.

CORN futures were down on Wednesday, also due to planting progress.

Ethanol production in the U.S consumed about 11.18 million tonnes of corn in May.

Mexico, as a precaution against possible tariffs imposed by the U.S., purchased almost 2.27 million tonnes of corn from Brazil.

The USDA reported Ukraine’s corn crop should reach 33.0 million tonnes this year. That would be down from last year’s record harvest of 35.8 million tonnes.

WHEAT futures were also weaker on Wednesday due to spillover from soybeans and corn.

The International Grains Council estimated global wheat stocks for the 2019/20 crop year to reach 293.0 million tonnes. That’s up from the previous crop year’s 281.0 million tonnes.

Germany expects its wheat crop to rebound from last year’s severe drought. Expectations are for a 22 per cent increase in production to about 22.41 million tonnes.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.80 at US$51.68 per barrel.

In the afternoon, the Canadian dollar was trading around US74.62 cents, up from 74.55 cents the previous trading day. The U.S. dollar was C$1.3401.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 19 450.20s -2.90 -0.64%

Canola Nov 19 462.90s -3.40 -0.73%

Canola Jan 20 469.00s -3.40 -0.72%

Canola Mar 20 474.40s -3.20 -0.67%

Canola May 20 479.30s -2.70 -0.56%

 

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 19 869-6s -12-0 -1.36%

Soybean Aug 19 876-2s -12-4 -1.41%

Soybean Sep 19 883-6s -12-2 -1.37%

Soybean Nov 19 897-2s -12-0 -1.32%

Soybean Jan 20 910-4s -11-2 -1.22%

 

Soybean Meal Jul 19 317.7s -3.3 -1.03%

Soybean Meal Aug 19 319.2s -3.5 -1.08%

Soybean Meal Sep 19 321.0s -3.5 -1.08%

 

Soybean Oil Jul 19 27.22s -0.27 -0.98%

Soybean Oil Aug 19 27.37s -0.26 -0.94%

Soybean Oil Sep 19 27.49s -0.26 -0.94%

 

Corn Jul 19 414-6s -10-4 -2.47%

Corn Sep 19 424-2s -10-4 -2.42%

Corn Dec 19 433-4s -10-4 -2.36%

Corn Mar 20 442-0s -10-6 -2.37%

Corn May 20 445-0s -10-4 -2.31%

 

Oats Jul 19 291-6s -12-2 -4.03%

Oats Sep 19 281-6s -9-6 -3.34%

Oats Dec 19 272-0s -8-2 -2.94%

Oats Mar 20 273-4s -6-4 -2.32%

Oats May 20 271-0s -6-4 -2.34%

 

Wheat Jul 19 490-6s -16-4 -3.25%

Wheat Sep 19 497-6s -17-0 -3.30%

Wheat Dec 19 511-0s -17-4 -3.31%

Wheat Mar 20 523-2s -18-2 -3.37%

Wheat May 20 530-2s -18-0 -3.28%

 

Minneapolis

Spring Wheat Jul 19 547-0s -13-4 -2.41%

Spring Wheat Sep 19 556-6s -13-2 -2.32%

Spring Wheat Dec 19 571-0s -12-6 -2.18%

Spring Wheat Mar 20 585-0s -12-4 -2.09%

Spring Wheat May 20 592-4s -12-4 -2.07%

 

Kansas City

Hard Red Wheat Jul 19 445-6s -22-6 -4.86%

Hard Red Wheat Sep 19 458-6s -22-6 -4.72%

Hard Red Wheat Dec 19 481-6s -21-6 -4.32%

Hard Red Wheat Mar 20 503-2s -20-2 -3.87%

Hard Red Wheat May 20 516-4s -19-2 -3.59%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 19 107.850s +0.300 +0.28%

Live Cattle Aug 19 104.675s +0.625 +0.60%

Live Cattle Oct 19 105.550s +0.750 +0.72%

 

Feeder Cattle Aug 19 139.450s +2.000 +1.46%

Feeder Cattle Sep 19 139.700s +1.825 +1.32%

Feeder Cattle Oct 19 139.725s +1.775 +1.29%

 

Lean Hogs Jun 19 79.850s -1.275 -1.57%

Lean Hogs Jul 19 86.275s +0.475 +0.55%

Lean Hogs Aug 19 86.075s +0.600 +0.70%

 

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