Coronavirus fears dampening canola futures

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.

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.

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.

OUTSIDE MARKETS

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 US74.47 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%

 

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