Good weather helps push canola futures lower

Winnipeg – The ICE Futures canola market was weaker on Monday, as improving weather conditions and losses in Chicago Board of Trade soybeans weighed on prices.

Bearish chart signals contributed to the declines, as fund traders added to their large net short positions.

Recent rainfall across dry areas of the Canadian Prairies also weighed on values, according to traders, although localized thunderstorm damage was likely.

Improving weather forecasts for some growing areas in the United States contributed to a selloff in CBOT soybeans and corn, which spilled into the canola market.

About 8,248 canola contracts traded on Monday, which compares with Friday when 11,328 contracts changed hands. Spreading accounted for 3,726 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, as chart-based profit-taking weighed on prices.

Updated weather forecasts calling for rain in some United States soybean growing areas contributed to the declines, as the moisture eased concerns over recent hot and dry forecasts.

The monthly U.S. soybean crush came in below expectations, which also weighed on values.

However, weekly U.S. soybean export inspections of about 850,000 tonnes were well above the same week a year ago, with about half of the business destined for China.

CORN was also lower, as the market ran into chart-resistance and backed away off of its nearby highs.

The shifting weather forecasts for the Corn Belt were behind some of the selling pressure.

Weekly U.S. corn export inspections of 675,000 tonnes were about half of what moved during the same week a year ago.

Opinions are divided on the condition of the U.S. corn crop, with some analysts expecting a slight downgrade from last week’s 56 per cent good to excellent reading, and others an improvement.

WHEAT futures were lower, as the advancing U.S. harvest weighed on prices. The country’s winter wheat harvest is thought to be nearing about two-thirds complete.

Condition ratings for spring wheat likely held steady on the week, according to trade estimates.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 63 cents at US$59.58 per barrel.

In the afternoon, the Canadian dollar was trading around US76.69 cents, down from 76.70 cents the previous trading day. The U.S. dollar was C$1.3039.

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 19  446.90s  -3.80  -0.84%

Canola Jan 20  453.90s  -3.80  -0.83%

Canola Mar 20  460.70s  -3.80  -0.82%

Canola May 20  466.50s  -3.80  -0.81%

Canola Jul 20  471.40s  -3.90  -0.82%

 

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 Aug 19  901-6s  -11-4  -1.26%

Soybean Sep 19  907-6s  -11-2  -1.22%

Soybean Nov 19  920-0s  -11-4  -1.23%

Soybean Jan 20  932-2s  -10-6  -1.14%

Soybean Mar 20  941-0s  -11-0  -1.16%

 

Soybean Meal Aug 19  311.6s  -3.2  -1.02%

Soybean Meal Sep 19  313.3s  -3.2  -1.01%

Soybean Meal Oct 19  315.0s  -3.2  -1.01%

 

Soybean Oil Aug 19  28.28s  -0.03  -0.11%

Soybean Oil Sep 19  28.41s  -0.02  -0.07%

Soybean Oil Oct 19  28.54s  -0.01  -0.04%

 

Corn Sep 19  441-0s  -13-2  -2.92%

Corn Dec 19  447-0s  -12-2  -2.67%

Corn Mar 20  453-6s  -11-2  -2.42%

Corn May 20  456-4s  -10-2  -2.20%

Corn Jul 20  458-6s  -9-0  -1.92%

 

Oats Sep 19  281-2s  -0-2  -0.09%

Oats Dec 19  284-0s  +0-2  +0.09%

Oats Mar 20  287-2s  +0-2  +0.09%

Oats May 20  285-6s  +0-2  +0.09%

Oats Jul 20  284-0s  +0-2  +0.09%

 

Wheat Sep 19  507-6s  -15-2  -2.92%

Wheat Dec 19  520-0s  -15-0  -2.80%

Wheat Mar 20  533-0s  -14-4  -2.65%

Wheat May 20  539-0s  -14-2  -2.58%

Wheat Jul 20  539-6s  -13-2  -2.40%

 

Minneapolis

Spring Wheat Sep 19  532-4s  -10-2  -1.89%

Spring Wheat Dec 19  546-0s  -10-2  -1.84%

Spring Wheat Mar 20  560-6s  -10-2  -1.80%

Spring Wheat May 20  569-2s  -10-0  -1.73%

Spring Wheat Jul 20  576-6s  -10-2  -1.75%

 

Kansas City

Hard Red Wheat Sep 19  449-0s  -18-2  -3.91%

Hard Red Wheat Dec 19  469-2s  -17-4  -3.60%

Hard Red Wheat Mar 20  488-6s  -16-2  -3.22%

Hard Red Wheat May 20  501-0s  -16-0  -3.09%

Hard Red Wheat Jul 20  505-0s  -14-6  -2.84%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Aug 19  108.500s  +0.025  +0.02%

Live Cattle Oct 19  109.775s  -0.200  -0.18%

Live Cattle Dec 19  114.100s  -0.125  -0.11%

 

Feeder Cattle Aug 19  141.650s  +0.050  +0.04%

Feeder Cattle Sep 19  142.600s  +0.050  +0.04%

Feeder Cattle Oct 19  142.975s  +0.125  +0.09%

 

Lean Hogs Jul 19  70.775s  -0.275  -0.39%

Lean Hogs Aug 19  80.100s  -0.550  -0.68%

Lean Hogs Oct 19  73.900s  +0.675  +0.92%

 

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