Dollar puts downward pressure on canola

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Published: March 19, 2019

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WINNIPEG (MarketsFarm) – ICE Futures canola contracts were weaker at the end of trading on Tuesday, with pressure from a rising Canadian dollar and a decline in soyoil prices.

The Canadian dollar pushed above 75 U.S. cents on Tuesday, ahead of the federal Liberal government’s budget, which is being presented this afternoon.

May soyoil on the Chicago Board of Trade slipped 0.20 of cent to 29.24 United States cents per pound.

Commercial bargain hunting has been continuing, and the technical bias remains to the upside, providing some support. However, the bias is beginning to struggle.

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SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday.

Wet conditions in the United States have caused flooding in Nebraska, Iowa, Kansas and Missouri. Farmers in those states could reconsider their planting intentions, switching from corn to soybeans.

While speaking at a farm conference in Florida this week, U.S. Secretary of Agriculture, Sonny Perdue, said trade talks with China are “dynamic.” Perdue stated China could triple its 2017 purchases of U.S. farm goods over the next five years.

A private forecaster released its projections for the South American soybean production. Brazil’s soybean crop remained at 113.5 million tonnes. Argentina’s soybean crop was also unchanged at 54 million tonnes.

CORN futures were steady on Tuesday. The private forecaster said Brazil’s corn production is unchanged at 93.5 million tonnes, and Argentina’s corn production increased by one million tonnes to 45 million tonnes.

WHEAT futures were mixed on Tuesday. Bids at Minneapolis were up, while those at Chicago and Kansas City were down.

There are some changes to the U.S. winter wheat conditions. In Oklahoma, 60 per cent of its winter wheat was good to excellent, which is unchanged from the previous report. Kansas winter wheat was at 51 per cent good to excellent, an increase of two points. Texas winter wheat was at 33 per cent good to excellent, up one point.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 6 cents at US$59.03 per barrel.

In the afternoon, the Canadian dollar was trading around US75.23 cents, up from 74.93 cents the previous trading day. The U.S. dollar was C$1.3292.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 19  464.50s  -1.80  -0.39%

Canola Jul 19  472.40s  -2.10  -0.44%

Canola Nov 19  484.80s  -1.20  -0.25%

Canola Jan 20  490.40s  -1.20  -0.24%

Canola Mar 20  494.10s  -1.50  -0.30%

 

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 May 19  904-0s  -1-6  -0.19%

Soybean Jul 19  917-4s  -1-6  -0.19%

Soybean Aug 19  923-6s  -1-6  -0.19%

Soybean Sep 19  928-6s  -1-2  -0.13%

Soybean Nov 19  938-2s  -0-6  -0.08%

 

Soybean Meal May 19  310.8s  +1.0  +0.32%

Soybean Meal Jul 19  314.3s  +0.8  +0.26%

Soybean Meal Aug 19  315.9s  +0.9  +0.29%

 

Soybean Oil May 19  29.24s  -0.20  -0.68%

Soybean Oil Jul 19  29.56s  -0.20  -0.67%

Soybean Oil Aug 19  29.69s  -0.21  -0.70%

 

Corn May 19  371-2s  -0-2  -0.07%

Corn Jul 19  380-6s  unch  unch

Corn Sep 19  387-4s  unch  unch

Corn Dec 19  395-2s  +0-4  +0.13%

Corn Mar 20  406-0s  +0-2  +0.06%

 

Oats May 19  273-0s  -5-0  -1.80%

Oats Jul 19  272-0s  -3-2  -1.18%

Oats Sep 19  266-2s  -3-0  -1.11%

Oats Dec 19  261-0s  -3-0  -1.14%

Oats Mar 20  257-6s  -3-0  -1.15%

 

Wheat May 19  456-4s  -0-2  -0.05%

Wheat Jul 19  462-6s  -0-6  -0.16%

Wheat Sep 19  471-2s  -0-6  -0.16%

Wheat Dec 19  486-2s  -0-4  -0.10%

Wheat Mar 20  499-2s  -0-4  -0.10%

 

Minneapolis

Spring Wheat May 19  565-2s  +4-4  +0.80%

Spring Wheat Jul 19  563-2s  +1-2  +0.22%

Spring Wheat Sep 19  568-2s  +0-6  +0.13%

Spring Wheat Dec 19  580-4s  +0-4  +0.09%

Spring Wheat Mar 20  592-6s  +0-4  +0.08%

 

Kansas City

Hard Red Wheat May 19  435-6s  -0-6  -0.17%

Hard Red Wheat Jul 19  445-0s  -1-0  -0.22%

Hard Red Wheat Sep 19  457-0s  -1-4  -0.33%

Hard Red Wheat Dec 19  477-2s  -1-6  -0.37%

Hard Red Wheat Mar 20  495-0s  -1-2  -0.25%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 19  129.125s  +0.800  +0.62%

Live Cattle Jun 19  122.725s  +0.150  +0.12%

Live Cattle Aug 19  118.725s  +0.625  +0.53%

 

Feeder Cattle Mar 19  142.250s  +0.600  +0.42%

Feeder Cattle Apr 19  147.800s  +1.500  +1.03%

Feeder Cattle May 19  150.525s  +2.200  +1.48%

 

Lean Hogs Apr 19  70.825s  -0.200  -0.28%

Lean Hogs May 19  79.150s  -0.525  -0.66%

Lean Hogs Jun 19  87.250s  -0.550  -0.63%

 

About the author

Glen Hallick

Glen Hallick

Reporter

Glen Hallick grew up in rural Manitoba near Starbuck, where his family farmed. Glen has a degree in political studies from the University of Manitoba and studied creative communications at Red River College. Before joining Glacier FarmMedia, Glen was an award-winning reporter and editor with several community newspapers and group editor for the Interlake Publishing Group. Glen is an avid history buff and enjoys following politics.

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