Dollar, harvest keep pressure on canola futures

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were steady to weaker on Tuesday, pressured by harvest development and a strong Canadian dollar.
The Canadian dollar remained just over 76 U.S. cents, riding the coattails from last week’s rally and keeping a lid on values.
As harvest continues, prices may go lower, due to large carryover stocks from 2018.
A Winnipeg-based trader said technical biases are trending lower. If prices break below C$437, that could result in additional technical selling.

Statistics Canada will release its field crop estimates on Thursday, which will provide some direction to markets.

There were 17,354 contracts traded on Tuesday, which compares with Monday when 12,052 contracts changed hands. Spreading accounted for 9,904 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Tuesday, bouncing back from muted activity on Monday.
Soybean crop development remains behind schedule according to the United States Department of Agriculture. Approximately 92 per cent of the soybean crop is setting pods, down from the four-year average of 99 per cent.
Soybean crop conditions remained at 55 per cent good to excellent, though that’s down from last year’s rating of 68 per cent.
This morning, the USDA reported an export sale of 138,000 tonnes of new crop soybeans for delivery to Mexico. Additionally, 195,750 metric tonnes of soybean cake and meal were sold to Mexico as well.
CORN futures were stronger on Tuesday, following reports of degrading crop conditions. The corn crop is rated at 55 per cent good to excellent, down three per cent from the previous week. That rating is also down considerably from last year, when 68 per cent of the crop was good to excellent.

A sale of 278,200 tonnes of new crop corn was made by Mexico this morning.

Corn crop development continues to lag behind schedule. About 89 per cent of the crop is in the dough stage, down from the four-year average of 97 per cent. Corn in the dented stage is around 55 per cent, down from the 77 per cent four-year average.
WHEAT futures were higher on Tuesday, as rain in the Northern Plains region of the U.S. has delayed the spring wheat harvest. Further delays could possibly impact quality.
The spring wheat harvest is about 70 per cent complete, lagging behind the four-year average of 87 per cent.
Wheat prices are under pressure due to burgeoning global wheat stocks. Recent data showed large export totals from Ukraine and Russia last month. Also, the French Farm Ministry recently raised the country’s wheat production estimates for 2019-2020 to 39.45 million tonnes. However, Australia’s wheat crop may be threatened by a drought.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 45 cents at US$57.40 per barrel.

In the afternoon, the Canadian dollar was trading around US76.03 cents, up from 76.02 cents the previous trading day. The U.S. dollar was C$1.3153.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 19 439.40s -0.40 -0.09%

Canola Jan 20 447.20s -0.50 -0.11%

Canola Mar 20 454.50s -0.40 -0.09%

Canola May 20 461.10s -0.30 -0.07%

Canola Jul 20 467.50s -0.20 -0.04%

 

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 Sep 19 859-2s +14-2 +1.69%

Soybean Nov 19 872-0s +14-2 +1.66%

Soybean Jan 20 885-6s +13-6 +1.58%

Soybean Mar 20 899-0s +13-2 +1.50%

Soybean May 20 910-6s +12-6 +1.42%

 

Soybean Meal Sep 19 292.9s +4.4 +1.53%

Soybean Meal Oct 19 294.3s +3.9 +1.34%

Soybean Meal Dec 19 298.1s +4.1 +1.39%

 

Soybean Oil Sep 19 28.38s +0.12 +0.42%

Soybean Oil Oct 19 28.35s +0.09 +0.32%

Soybean Oil Dec 19 28.53s +0.08 +0.28%

 

Corn Sep 19 348-4s +7-6 +2.27%

Corn Dec 19 361-4s +7-2 +2.05%

Corn Mar 20 374-4s +7-2 +1.97%

Corn May 20 383-4s +6-6 +1.79%

Corn Jul 20 390-6s +6-4 +1.69%

 

Oats Sep 19 281-6s +5-2 +1.90%

Oats Dec 19 274-4s +5-2 +1.95%

Oats Mar 20 276-0s +4-6 +1.75%

Oats May 20 272-4s +2-6 +1.02%

Oats Jul 20 272-6s +1-4 +0.55%

 

Wheat Sep 19 484-4s +10-0 +2.11%

Wheat Dec 19 482-2s +7-6 +1.63%

Wheat Mar 20 487-4s +8-4 +1.77%

Wheat May 20 490-2s +8-6 +1.82%

Wheat Jul 20 492-6s +8-6 +1.81%

 

Minneapolis

Spring Wheat Sep 19 487-4s +10-2 +2.15%

Spring Wheat Dec 19 503-6s +7-0 +1.41%

Spring Wheat Mar 20 518-6s +7-2 +1.42%

Spring Wheat May 20 530-2s +7-6 +1.48%

Spring Wheat Jul 20 541-4s +8-2 +1.55%

 

Kansas City

Hard Red Wheat Sep 19 382-0s +2-0 +0.53%

Hard Red Wheat Dec 19 403-6s +5-6 +1.44%

Hard Red Wheat Mar 20 417-4s +5-4 +1.33%

Hard Red Wheat May 20 427-0s +5-0 +1.18%

Hard Red Wheat Jul 20 436-6s +5-0 +1.16%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Oct 19 96.150s +1.950 +2.07%

Live Cattle Dec 19 101.225s +2.050 +2.07%

Live Cattle Feb 20 108.425s +2.350 +2.22%

 

Feeder Cattle Sep 19 133.900s +1.075 +0.81%

Feeder Cattle Oct 19 131.050s +1.225 +0.94%

Feeder Cattle Nov 19 130.700s +1.900 +1.48%

 

Lean Hogs Oct 19 62.725s +0.125 +0.20%

Lean Hogs Dec 19 61.775s +1.825 +3.04%

Lean Hogs Feb 20 69.150s +0.875 +1.28%

 

Markets at a glance

Copyright © 2019. All market data is provided by Barchart Market Data Solutions. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

explore

Stories from our other publications