Good crush margins helps canola

Winnipeg, (MarketsFarm) – The ICE Futures canola market settled with small gains on Thursday, as the market continued to find some strength after dropping earlier in the week.

Crush margins remain at some of their best levels of the past year, making canola attractively priced for end users, according to traders.

Production uncertainty in parts of the Prairies was also supportive. However, the looming harvest kept a lid on the upside, with anecdotal reports pointing to decent crops in many areas.

Chicago Board of Trade soybeans posted small losses, putting some pressure on canola.

About 12,748 canola contracts traded on Thursday, which compares with Wednesday when 16,625 contracts changed hands. Spreading accounted for 5,838 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, seeing some follow-through speculative selling after Wednesday’s declines.

The losses came despite relatively solid United States export data. Net cancellations of old crop business of about 110,000 tonnes more than made up for by new crop business of just over 800,000 tonnes, as some business was shifted into the new crop year.

U.S. soybean crushers were busy in July, setting a new record for the month with 168.1 million bushels of soybeans crushed during the month, according to a report from the National Oilseed Processors Association.

Soyoil stocks still tightened on the month, despite the solid crush pace and an increase in oil yields.

CORN was steady to higher, as the market saw some consolidation after dropping sharply earlier this week on the surprisingly large U.S. Department of Agriculture production forecast.

While corn may be due for a correction, the longer-term chart trend remained pointed lower. Uncertainty in the global financial markets kept some pressure on the corn market.

Weekly U.S. corn export sales of 56,000 tonnes of old crop business and 308,000 tonnes of new crop were in line with expectations.

WHEAT futures were mixed on Thursday, with gains in Kansas City hard red winter wheat and losses in the other markets.
Weekly U.S. wheat export sale of 462,000 tonnes were down from the same week the previous year, but at the higher end of trade estimates.

European wheat production for this year was pegged at 142.9 million tonnes by Strategie Grains. That would be up by 2.3 million from an earlier estimate. The agency also upped their export forecast by nearly three million tonnes, to 24.8 million tonnes.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 76 cents at US$54.47 per barrel.

In the afternoon, the Canadian dollar was trading around US75.05 cents, up from 75.13 cents the previous trading day. The U.S. dollar was C$1.3325.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 19  451.20s  +1.00  +0.22%

Canola Jan 20  458.90s  +1.10  +0.24%

Canola Mar 20  465.50s  +1.10  +0.24%

Canola May 20  471.20s  +1.00  +0.21%

Canola Jul 20  476.30s  +0.50  +0.11%

 

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  858-0s  -7-4  -0.87%

Soybean Nov 19  870-6s  -7-2  -0.83%

Soybean Jan 20  884-2s  -7-2  -0.81%

Soybean Mar 20  897-0s  -6-6  -0.75%

Soybean May 20  908-2s  -6-6  -0.74%

 

Soybean Meal Sep 19  291.8s  -2.8  -0.95%

Soybean Meal Oct 19  293.6s  -2.8  -0.94%

Soybean Meal Dec 19  296.9s  -3.0  -1.00%

 

Soybean Oil Sep 19  29.07s  -0.10  -0.34%

Soybean Oil Oct 19  29.19s  -0.10  -0.34%

Soybean Oil Dec 19  29.45s  -0.10  -0.34%

 

Corn Sep 19  360-6s  +1-6  +0.49%

Corn Dec 19  371-0s  +0-6  +0.20%

Corn Mar 20  383-4s  +0-2  +0.07%

Corn May 20  391-2s  +0-2  +0.06%

Corn Jul 20  397-6s  +0-2  +0.06%

 

Oats Sep 19  274-6s  -2-0  -0.72%

Oats Dec 19  267-0s  -4-6  -1.75%

Oats Mar 20  271-2s  -4-4  -1.63%

Oats May 20  271-0s  -4-2  -1.54%

Oats Jul 20  272-6s  -4-0  -1.45%

 

Wheat Sep 19  469-0s  -4-6  -1.00%

Wheat Dec 19  474-4s  -3-6  -0.78%

Wheat Mar 20  481-0s  -3-0  -0.62%

Wheat May 20  486-6s  -2-4  -0.51%

Wheat Jul 20  491-0s  -2-6  -0.56%

 

Minneapolis

Spring Wheat Sep 19  502-6s  -2-6  -0.54%

Spring Wheat Dec 19  514-6s  -2-6  -0.53%

Spring Wheat Mar 20  530-0s  -2-6  -0.52%

Spring Wheat May 20  540-2s  -2-6  -0.51%

Spring Wheat Jul 20  550-6s  -2-4  -0.45%

 

Kansas City

Hard Red Wheat Sep 19  389-6s  +5-0  +1.30%

Hard Red Wheat Dec 19  404-2s  +3-4  +0.87%

Hard Red Wheat Mar 20  420-2s  +3-6  +0.90%

Hard Red Wheat May 20  431-0s  +4-0  +0.94%

Hard Red Wheat Jul 20  441-2s  +4-2  +0.97%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Aug 19  100.200s  unch  unch

Live Cattle Oct 19  98.525s  +0.025  +0.03%

Live Cattle Dec 19  104.275s  -0.275  -0.26%

 

Feeder Cattle Aug 19  135.775s  +1.300  +0.97%

Feeder Cattle Sep 19  133.300s  +0.475  +0.36%

Feeder Cattle Oct 19  133.750s  +0.375  +0.28%

 

Lean Hogs Oct 19  65.000s  -1.775  -2.66%

Lean Hogs Dec 19  63.750s  -1.025  -1.58%

Lean Hogs Feb 20  70.250s  -1.050  -1.47%

 

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