Winnipeg, – ICE Futures canola contracts were mixed on Friday, with gains in the front months and losses in the new crop positions as the market reacted to activity in the outside currency and vegetable oil markets.
Sharp gains in Chicago Board of Trade soyoil futures provided underlying support, while technical signals were also pointed higher.
However, strength in the Canadian dollar put some pressure on values, with the currency up by more than half a cent relative to its United States counterpart.
Steady farmer selling into the commercial pipeline also kept a lid on the upside, with little reason for end users to bid up the current market.
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Farmers delivered 406,300 tonnes of canola during the week ended Jan. 20, according to the latest Canadian Grain Commission data. That brought total visible supplies in the commercial pipeline up to 1.168 million tonnes, from 1.075 million the previous week.
About 22,094 canola contracts traded on Friday, which compares with Thursday when 27,419 contracts changed hands. Spreading accounted for 12,722 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, with pre-weekend speculative buying a feature.
Soyoil led to the upside in the soy complex, following recent strength in Malaysian palm oil.
Ongoing dryness concerns in Brazil were also supportive, as production estimates out of the country continue to be revised lower. Meanwhile, excessive moisture was reportedly causing problems in Argentina.
However, mounting South American harvest pressure did keep some caution in the market.
Uncertainty over trade relations between the United States and China also kept a lid on the upside. Some more talks are scheduled for next week, but the two sides reportedly remain far apart on numerous issues.
U.S. President Donald Trump announced late in the session that the partial government shutdown was ending for three weeks. It’s unknown what the reopening will mean for unreleased U.S. Department of Agriculture reports from the past month.
CORN moved higher, but held within its sideways trading range overall.
With the soybean harvest underway in Brazil, some farmers were also starting to plant the second-corn crop. Meanwhile, in Argentina, corn seeding was nearing completion at about 93 per cent done.
WHEAT futures settled with small losses in the most active months.
Forecasts calling for cold temperatures in some key Midwestern winter wheat growing regions over the next week were somewhat supportive. However, snow cover is thought to be sufficient for the most part.
U.S wheat is reportedly looking more attractively priced on the global market these days, while signs that Russian exports could be slowing down were also supportive.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up 56 cents at US$53.69 per barrel.
In the afternoon, the Canadian dollar was trading around US75.44 cents, up from 74.90 cents the previous trading day. The U.S. dollar was C$1.3256.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 19 488.50s +1.50 +0.31%
Canola May 19 497.10s +1.30 +0.26%
Canola Jul 19 505.10s +1.30 +0.26%
Canola Nov 19 500.40s -1.10 -0.22%
Canola Jan 20 504.80s -1.40 -0.28%
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 Mar 19 925-2s +9-2 +1.01%
Soybeans May 19 939-0s +9-2 +0.99%
Soybeans Jul 19 951-6s +9-2 +0.98%
Soybeans Aug 19 956-2s +8-6 +0.92%
Soybeans Sep 19 958-0s +8-2 +0.87%
Soybean Meal Mar 19 313.9s +1.6 +0.51%
Soybean Meal May 19 317.9s +1.7 +0.54%
Soybean Meal Jul 19 321.7s +1.5 +0.47%
Soybean Oil Mar 19 30.03s +0.52 +1.76%
Soybean Oil May 19 30.34s +0.54 +1.81%
Soybean Oil Jul 19 30.64s +0.53 +1.76%
Corn Mar 19 380-2s +3-2 +0.86%
Corn May 19 388-6s +3-2 +0.84%
Corn Jul 19 396-4s +3-0 +0.76%
Corn Sep 19 399-0s +2-4 +0.63%
Corn Dec 19 403-2s +2-4 +0.62%
Oats Mar 19 291-0s +0-2 +0.09%
Oats May 19 288-6s +0-4 +0.17%
Oats Jul 19 288-2s +0-4 +0.17%
Oats Sep 19 279-4s -1-2 -0.45%
Oats Dec 19 272-6s -0-2 -0.09%
Wheat Mar 19 520-0s -1-4 -0.29%
Wheat May 19 527-0s -1-2 -0.24%
Wheat Jul 19 533-0s -1-0 -0.19%
Wheat Sep 19 541-0s -1-2 -0.23%
Wheat Dec 19 553-6s -1-4 -0.27%
Minneapolis
Spring Wheat Mar 19 574-6s -1-4 -0.26%
Spring Wheat May 19 577-4s -2-2 -0.39%
Spring Wheat Jul 19 583-4s -2-2 -0.38%
Spring Wheat Sep 19 589-4s -2-6 -0.46%
Spring Wheat Dec 19 601-2s -2-6 -0.46%
Kansas City
Hard Red Wheat Mar 19 509-4s -2-0 -0.39%
Hard Red Wheat May 19 519-4s -1-4 -0.29%
Hard Red Wheat Jul 19 529-2s -1-0 -0.19%
Hard Red Wheat Sep 19 539-4s -1-4 -0.28%
Hard Red Wheat Dec 19 555-0s -1-4 -0.27%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 19 126.050s +0.700 +0.56%
Live Cattle Apr 19 126.850s +0.375 +0.30%
Live Cattle Jun 19 116.700s -0.300 -0.26%
Feeder Cattle Jan 19 143.375s -0.400 -0.28%
Feeder Cattle Mar 19 143.625s -0.700 -0.49%
Feeder Cattle Apr 19 144.725s -0.650 -0.45%
Lean Hogs Feb 19 58.375s -1.450 -2.42%
Lean Hogs Apr 19 62.125s -1.375 -2.17%
Lean Hogs May 19 68.900s -1.400 -1.99%
