WINNIPEG – ICE Futures canola contracts were weaker significantly the end of trading on Friday, due to comments from the Canola Council of Canada.
The council issued a press release on Thursday after the markets closed, which said China had ceased purchasing canola from Canada. While previous contracts were being fulfilled, all new sales to China had ceased completely.
A Winnipeg-based analyst stressed the markets had a “knee-jerk reaction” to the news. He said the markets already knew canola sales to China had pretty ground to a halt in January.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Canola exports to China had been a record pace for the 2018-19 crop year, until a spat developed between Canada and China, following the arrest of a Huawei executive in December.
In 2018, canola exports to China were worth $2.8 billion. About 40 per cent of Canada’s canola exports had been going to China.
The Canadian dollar continued its downward trend on Friday. The loonie was down to 74.55 U.S. cents by mid-afternoon.
About 34,720 contracts were traded on Friday, which compares with Thursday when 13,150 contracts changed hands.
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday.
In the United States, the National Oceanic and Atmospheric Administration has projected flooding to continue into May. Major flooding has already struck a number of U.S. states, and will hit several more as the spring melt progresses. Most of the eastern half of the U.S. will experience minor to major flooding this spring.
U.S. President Donald Trump has now said a trade deal with China “probably will happen.” Recently, Trump said tariffs on imports from China might stay in place, and that was taken as a sign negotiations were in trouble. Top U.S. officials will travel to China next week for trade talks.
On Thursday, a U.S. federal judge refused to throw out a case against Bayer regarding Round-Up. The jury in the trial recently found that Round-Up can cause cancer. The trial is now in its second phase in which Bayer’s liability will be determined and if the company needs to pay damages.
CORN futures were stronger on Friday on news that China purchased approximately 464,540 tonnes of corn. The sale marks China’s largest purchase of U.S. corn since October 2013, according to a report.
The flooding has cut U.S. ethanol production by 13 per cent, reduced grain shipments and may force farmers to switch their planting intentions from corn to soybeans.
WHEAT futures were mixed on Friday. Chicago and Kansas City wheat were weaker, but Minneapolis wheat finished stronger.
U.S. farmers are expected to plant their fewest wheat acres in 100 years. Projections are for 45.9 million acres in 2019, a five per cent drop from 2018, according to a Farm Futures survey.
The U.S. Department of Agriculture will release its crop projections on March 29.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was down 94 cents at US$59.04 per barrel.
In the afternoon, the Canadian dollar was trading around US74.57 cents, down from 74.82 cents the previous trading day. The U.S. dollar was C$1.3411.
Winnipeg ICE Futures Canada dollars per tonne.
Canola May 19 453.90s -14.30 -3.05%
Canola Jul 19 462.50s -14.10 -2.96%
Canola Nov 19 474.80s -14.10 -2.88%
Canola Jan 20 481.30s -13.70 -2.77%
Canola Mar 20 484.60s -13.70 -2.75%
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 May 19 903-6s -6-6 -0.74%
Soybean Jul 19 917-2s -7-0 -0.76%
Soybean Aug 19 923-2s -7-0 -0.75%
Soybean Sep 19 928-4s -6-6 -0.72%
Soybean Nov 19 937-4s -7-2 -0.77%
Soybean Meal May 19 315.0s -0.3 -0.10%
Soybean Meal Jul 19 318.2s -0.7 -0.22%
Soybean Meal Aug 19 319.5s -0.8 -0.25%
Soybean Oil May 19 28.66s -0.44 -1.51%
Soybean Oil Jul 19 28.98s -0.44 -1.50%
Soybean Oil Aug 19 29.11s -0.45 -1.52%
Corn May 19 378-2s +2-0 +0.53%
Corn Jul 19 387-4s +2-0 +0.52%
Corn Sep 19 393-2s +1-4 +0.38%
Corn Dec 19 400-0s +1-2 +0.31%
Corn Mar 20 410-2s +1-2 +0.31%
Oats May 19 278-4s -2-2 -0.80%
Oats Jul 19 275-0s -2-0 -0.72%
Oats Sep 19 266-6s -2-4 -0.93%
Oats Dec 19 261-6s unch unch
Oats Mar 20 258-2s unch unch
Wheat May 19 466-0s -0-4 -0.11%
Wheat Jul 19 470-6s -0-6 -0.16%
Wheat Sep 19 479-4s -0-4 -0.10%
Wheat Dec 19 494-2s -0-4 -0.10%
Wheat Mar 20 508-0s +0-2 +0.05%
Minneapolis
Spring Wheat May 19 572-2s +1-0 +0.18%
Spring Wheat Jul 19 570-6s -0-4 -0.09%
Spring Wheat Sep 19 574-6s -1-0 -0.17%
Spring Wheat Dec 19 585-6s -1-2 -0.21%
Spring Wheat Mar 20 596-2s -1-6 -0.29%
Kansas City
Hard Red Wheat May 19 445-0s -2-0 -0.45%
Hard Red Wheat Jul 19 453-4s -1-6 -0.38%
Hard Red Wheat Sep 19 465-0s -1-4 -0.32%
Hard Red Wheat Dec 19 484-4s -0-6 -0.15%
Hard Red Wheat Mar 20 500-4s -1-0 -0.20%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 19 129.725s -0.175 -0.13%
Live Cattle Jun 19 123.500s -0.400 -0.32%
Live Cattle Aug 19 120.025s +0.050 +0.04%
Feeder Cattle Mar 19 143.000s +0.225 +0.16%
Feeder Cattle Apr 19 148.800s -0.125 -0.08%
Feeder Cattle May 19 154.050s +0.050 +0.03%
Lean Hogs Apr 19 78.325s unch unch
Lean Hogs May 19 87.025s +0.425 +0.49%
Lean Hogs Jun 19 95.675s +0.925 +0.98%
