WINNIPEG, (MarketsFarm) – The ICE Futures canola market dropped to fresh contract lows in the most active contracts on Friday, but managed to settle with only small declines as traders squared positions ahead of the weekend.
Continued weakness in the global financial and energy markets over coronavirus fears remained a bearish influence, according to participants.
However, weakness in the Canadian dollar and ideas that the declines were looking overdone provided some support.
About 18,185 canola contracts traded on Friday, which compares with Thursday when 30,112 contracts changed hands. Spreading accounted for 11,228 of the contracts traded.
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The nearby March contract moved higher in very thin activity, as participants exited the front month ahead of its expiry.
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, as coronavirus-related selling pressure weighed on prices and speculators added to short positions ahead of the weekend.
The advancing Brazilian harvest added to the softer tone, with cheaper Brazilian beans displacing the United States in the global export market.
The U.S. Department of Agriculture reported private export sales of 135,000 tonnes of soymeal to the Philippines, which helped underpin the meal market and temper the losses in soybeans.
Expectations for increased export tariffs out of Argentina, coupled with a strike by the soybean crushers union in the South American country, also kept meal pointed higher despite the losses elsewhere.
CORN futures were steady, recovering from earlier losses as some support was uncovered to the downside.
Drier weather conditions in Brazil should help with seeding the second corn crop there, although the dryness also raised some concerns over germination.
Worldwide virus fears and rising global production estimates put some pressure on prices, keeping corn in a narrow range.
WHEAT futures were mixed, with losses in Chicago soft wheat and gains in the Minneapolis and Kansas City futures.
The International Grains Council released updated production estimates pegging world wheat production in 2020/21 at a record 769 million tonnes. That compares with the upwardly revised forecast for the current marketing year of 763 million tonnes.
The IGC raised its corn production estimate for 2019/20 by a million tonnes, taking it in line with the USDA’s forecast at 1.112 billion tonnes.
Light crude oil nearby futures in New York was down $2.33 at US$44.76 per barrel.
In the afternoon, the Canadian dollar was trading around US 74.47 cents, down from 74.84 centsthe previous trading day. The U.S. dollar was C$1.3429.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 20 452.80s +6.30 +1.41%
Canola May 20 456.30s -0.30 -0.07%
Canola Jul 20 464.00s -0.30 -0.06%
Canola Nov 20 475.20s -0.30 -0.06%
Canola Jan 21 481.80s -0.40 -0.08%
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 Mar 20 883-4s -2-6 -0.31%
Soybean May 20 892-6s -2-2 -0.25%
Soybean Jul 20 901-4s -3-2 -0.36%
Soybean Aug 20 904-0s -4-2 -0.47%
Soybean Sep 20 904-2s -4-2 -0.47%
Soybean Meal Mar 20 298.6s +1.7 +0.57%
Soybean Meal May 20 305.6s +2.0 +0.66%
Soybean Meal Jul 20 310.1s +2.2 +0.71%
Soybean Oil Mar 20 28.31s -0.52 -1.80%
Soybean Oil May 20 28.68s -0.51 -1.75%
Soybean Oil Jul 20 29.04s -0.52 -1.76%
Corn Mar 20 366-4s +2-0 +0.55%
Corn May 20 368-2s +0-2 +0.07%
Corn Jul 20 372-4s unch unch
Corn Sep 20 372-4s -0-2 -0.07%
Corn Dec 20 377-0s -0-4 -0.13%
Oats Mar 20 268-6s -4-6 -1.74%
Oats May 20 272-6s -7-0 -2.50%
Oats Jul 20 271-4s -7-6 -2.78%
Oats Sep 20 264-6s -3-6 -1.40%
Oats Dec 20 262-4s -2-4 -0.94%
Wheat Mar 20 529-0s -0-2 -0.05%
Wheat May 20 525-0s -2-4 -0.47%
Wheat Jul 20 526-2s -2-6 -0.52%
Wheat Sep 20 533-0s -3-0 -0.56%
Wheat Dec 20 543-4s -2-6 -0.50%
Minneapolis
Spring Wheat Mar 20 511-2s +3-4 +0.69%
Spring Wheat May 20 527-4s +3-4 +0.67%
Spring Wheat Jul 20 536-6s +3-2 +0.61%
Spring Wheat Sep 20 546-2s +3-2 +0.60%
Spring Wheat Dec 20 561-0s +4-4 +0.81%
Kansas City
Hard Red Wheat Mar 20 445-4s +2-2 +0.51%
Hard Red Wheat May 20 453-2s +1-4 +0.33%
Hard Red Wheat Jul 20 460-2s +1-4 +0.33%
Hard Red Wheat Sep 20 469-2s +1-2 +0.27%
Hard Red Wheat Dec 20 482-6s +1-6 +0.36%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 20 112.700s +0.075 +0.07%
Live Cattle Apr 20 107.575s -2.900 -2.63%
Live Cattle Jun 20 101.200s -2.725 -2.62%
Feeder Cattle Mar 20 131.275s -1.300 -0.98%
Feeder Cattle Apr 20 132.700s -1.375 -1.03%
Feeder Cattle May 20 133.525s -2.025 -1.49%
Lean Hogs Apr 20 62.275s -0.275 -0.44%
Lean Hogs May 20 69.025s -0.725 -1.04%
Lean Hogs Jun 20 77.225s -0.825 -1.06%
