Conditions converge on weaker canola; Russian exports weaken wheat

ICE Futures canola contracts were weaker on Friday, taking some direction from the Chicago Board of Trade soy complex as traders squared positions ahead of Christmas and the New Year.

Bearish technical signals, a lack of significant demand, and large supplies in the commercial pipeline all contributed to the losses in canola, according to participants.

However, weakness in the Canadian dollar provided some underlying support, as the currency fell by roughly half a cent relative to its US counterpart.

The North American grain markets will trade reduced hours on Monday, Dec. 24, before closing for Christmas. The Chicago markets reopen on Wednesday, while ICE canola will remain closed through Boxing Day, Dec. 26, with trade resuming for the Dec. 27 session.

About 32,190 canola contracts traded on Friday, which compares with Thursday when 24,749 contracts changed hands. Spreading accounted for 28,658 of the contracts traded.

SOYBEAN futures were lower on Friday, as volatility in the outside equity markets weighed on values and traders looked for confirmation of more export demand.

While China was buying soybeans from the United States this week, the pace of Chinese purchases was still not enough to cut into the large U.S. ending stocks projections.

Favourable South American crop conditions also weighed on values, with expectations for record large production in Brazil this year as early harvest operations get underway.

The U.S. Department of Agriculture (USDA) announced a flash sale of 115,500 tonnes of soybeans to unknown destinations this morning.

CORN futures were higher, seeing a correction following recent declines as traders adjusted positions and booked profits.

The USDA announced flash sales of 222,504 tonnes to unknown destinations Friday morning.

WHEAT futures were weaker on Friday, as Russian wheat exports were still showing no signs of slowing down.

While there had been some thoughts that tightening supplies would lead to reductions in Russian wheat sales, the country’s agriculture ministry actually raised its wheat export forecast for the year by two million tonnes, to 37 million tonnes.

Argentina’s wheat harvest was running slightly behind average, at 68 per cent complete, according to a report.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were down 84 cents at US$45.38 per barrel.

In the afternoon, the Canadian dollar was trading around US73.53 cents, down from 49 cents the previous trading day. The U.S. dollar was C$1.3600.

 

Winnipeg ICE Futures Canada dollars per tonne.

Name / Contract       Last     Change           % Change

Canola Jan 19            474.80s          -2.60   -0.54%

Canola Mar 19           484.70s          -1.10   -0.23%

Canola May 19          492.60s          -1.00   -0.20%

Canola Jul 19 499.70s          -0.60   -0.12%

Canola Nov 19           495.70s          -2.30   -0.46%

 

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 Jan 19       884-6s            -8-6     -0.98%

Soybeans Mar 19      897-6s            -8-4     -0.94%

Soybeans May 19      910-4s            -8-6     -0.95%

Soybeans Jul 19        923-0s            -8-2     -0.89%

Soybeans Aug 19      928-0s            -7-6     -0.83%

 

Soybean Meal Jan 19            305.6s            -2.1     -0.68%

Soybean Meal Mar 19          310.1s            -1.9     -0.61%

Soybean Meal May 19          313.2s            -2.0     -0.63%

 

Soybean Oil Jan 19   27.89s            -0.31   -1.10%

Soybean Oil Mar 19  28.17s            -0.31   -1.09%

Soybean Oil May 19  28.41s            -0.31   -1.08%

 

Corn Mar 19  378-4s            +3-2    +0.87%

Corn May 19  386-2s            +3-2    +0.85%

Corn Jul 19    393-4s            +3-2    +0.83%

Corn Sep 19   395-2s            +3-0    +0.76%

Corn Dec 19   399-2s            +2-4    +0.63%

 

Oats Mar 19   277-2s            -1-0     -0.36%

Oats May 19  280-2s            -1-2     -0.44%

Oats Jul 19     281-2s            unch   unch

Oats Sep 19   270-0s            -1-0     -0.37%

Oats Dec 19   262-4s            -1-2     -0.47%

 

Wheat Mar 19           514-0s            -9-4     -1.81%

Wheat May 19           521-2s            -9-6     -1.84%

Wheat Jul 19 528-6s            -9-4     -1.76%

Wheat Sep 19            537-2s            -8-6     -1.60%

Wheat Dec 19            551-2s            -8-2     -1.47%

 

Minneapolis

Spring Wheat Mar 19           561-2s            -6-6     -1.19%

Spring Wheat May 19          567-4s            -7-2     -1.26%

Spring Wheat Jul 19 574-0s            -7-0     -1.20%

Spring Wheat Sep 19           581-4s            -7-4     -1.27%

Spring Wheat Dec 19           595-0s            -6-4     -1.08%

 

Kansas City

Hard Red Wheat Mar 19      502-6s            -6-6     -1.32%

Hard Red Wheat May 19     514-0s            -6-6     -1.30%

Hard Red Wheat Jul 19        525-4s            -6-6     -1.27%

Hard Red Wheat Sep 19      537-0s            -6-2     -1.15%

Hard Red Wheat Dec 19      554-6s            -6-0     -1.07%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle (Pit) Dec 18        120.875s        +0.650            +0.54%

Live Cattle (Pit) Feb 19        122.700s        +0.350            +0.29%

Live Cattle (Pit) Apr 19        124.825s        +0.250            +0.20%

 

Feeder Cattle (Pit) Jan 19    147.350s        -0.075 -0.05%

Feeder Cattle (Pit) Mar 19  145.525s        +0.075            +0.05%

Feeder Cattle (Pit) Apr 19   145.975s        +0.075            +0.05%

 

Lean Hogs (Pit) Feb 19        61.125s          -1.250 -2.00%

Lean Hogs (Pit) Apr 19        67.225s          -0.550 -0.81%

Lean Hogs (Pit) May 19       73.950s          +0.100            +0.14%

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