WINNIPEG,(MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts ended lower on Thursday, breaking through past support to the downside.
The World Health Organization has declared the coronavirus outbreak in China to be an international public health emergency. The rapidly-spreading virus has spooked financial markets. The skittish mood has spilled over into commodity prices.
A weaker tone for soyoil on the Chicago Board of Trade kept pressure on canola prices. Last week, soyoil export sales totalled just over 29,000 tonnes, which was on the lower end of trade expectations.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
Relative weakness to the Canadian dollar wasn’t enough to push values into the green. At midday, the dollar was around 75.6 U.S. cents.
On Thursday, 21,737 contracts were traded, which compares with Wednesday when 28,770 contracts changed hands. Spreading accounted for 13,860 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) finished lower on Thursday, plagued by quiet export demand.
Last week, soybean export sales totalled just under 470,000 tonnes, which was on the lower end of trade expectations. Export sales were down 41 per cent compared to the previous week, and 11 percent lower than the prior four-week average.
Soybean cake and meal sales totalled approximately 438,000 tonnes, which was on the higher end of trade expectations.
One meteorologist said key growing regions in northern Brazil are experiencing wet weather during a critical point in the season. Brazil is in the middle of its soybean harvest, and is expected to produce a record-high amount this year.
Yesterday, United States President Donald Trump signed the U.S.-Mexico-Canada trade deal, or USCMA. Once all three countries ratify the deal, it will replace NAFTA. Canadian Parliament has also begun the ratification process.
CORN futures were weaker today, despite consistent export demand.
Last week, export sales were over 1.23 million tonnes. That was on the higher end of trade expectations. Corn exports were up by 23 per cent from the previous week, and almost 100 per cent higher than the prior four-week average.
Reduced travel activity to regions of China has weighed on fuel demand, which has resulted in lower prices for both crude oil and biofuels such as ethanol.
WHEAT futures were mostly lower on Thursday, staying mostly lower despite steady export demand. Minneapolis spring wheat showing pallid gains.
Last week, wheat export sales, totaled just over, 646,000 tonnes. That’s on the higher end of trade expectations, but 7 per cent lower than the week prior.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was down $1.19 at US$52.14 per barrel.
In the afternoon, the Canadian dollar was trading around US75.66 cents, down from 75.78 cents the previous trading day. The U.S. dollar was C$1.3217.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Mar 20 456.40s -5.30 -1.15%
Canola May 20 465.70s -5.20 -1.10%
Canola Jul 20 472.40s -5.20 -1.09%
Canola Nov 20 480.60s -5.70 -1.17%
Canola Jan 21 486.40s -5.60 -1.14%
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 20 876-2s -16-6 -1.88%
Soybean May 20 890-4s -16-4 -1.82%
Soybean Jul 20 904-2s -16-4 -1.79%
Soybean Aug 20 909-2s -16-0 -1.73%
Soybean Sep 20 910-6s -14-2 -1.54%
Soybean Meal Mar 20 291.5s -4.6 -1.55%
Soybean Meal May 20 296.5s -4.0 -1.33%
Soybean Meal Jul 20 301.4s -3.4 -1.12%
Soybean Oil Mar 20 30.63s -0.89 -2.82%
Soybean Oil May 20 31.00s -0.88 -2.76%
Soybean Oil Jul 20 31.36s -0.89 -2.76%
Corn Mar 20 379-4s -4-6 -1.24%
Corn May 20 384-6s -4-6 -1.22%
Corn Jul 20 389-4s -5-0 -1.27%
Corn Sep 20 387-2s -4-6 -1.21%
Corn Dec 20 390-4s -4-6 -1.20%
Oats Mar 20 305-4s -2-2 -0.73%
Oats May 20 300-0s -1-6 -0.58%
Oats Jul 20 288-2s -4-0 -1.37%
Oats Sep 20 271-2s -3-4 -1.27%
Oats Dec 20 270-4s unch unch
Wheat Mar 20 560-4s -1-6 -0.31%
Wheat May 20 558-4s -2-6 -0.49%
Wheat Jul 20 557-0s -3-4 -0.62%
Wheat Sep 20 563-0s -3-2 -0.57%
Wheat Dec 20 572-0s -3-0 -0.52%
Minneapolis
Spring Wheat Mar 20 536-4s +0-6 +0.14%
Spring Wheat May 20 546-0s +0-6 +0.14%
Spring Wheat Jul 20 555-0s +1-2 +0.23%
Spring Wheat Sep 20 564-2s +1-2 +0.22%
Spring Wheat Dec 20 575-6s +0-4 +0.09%
Kansas City
Hard Red Wheat Mar 20 471-0s -1-0 -0.21%
Hard Red Wheat May 20 478-4s -1-0 -0.21%
Hard Red Wheat Jul 20 486-0s -1-0 -0.21%
Hard Red Wheat Sep 20 494-4s -1-0 -0.20%
Hard Red Wheat Dec 20 505-4s -1-0 -0.20%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 20 121.775s +0.025 +0.02%
Live Cattle Apr 20 120.200s -0.025 -0.02%
Live Cattle Jun 20 112.025s +0.025 +0.02%
Feeder Cattle Jan 20 142.450s +0.350 +0.25%
Feeder Cattle Mar 20 135.650s +0.675 +0.50%
Feeder Cattle Apr 20 137.125s +0.050 +0.04%
Lean Hogs Feb 20 61.300s -3.000 -4.67%
Lean Hogs Apr 20 65.825s -3.000 -4.36%
Lean Hogs May 20 72.325s -3.000 -3.98%
