Grain/Oilseed Review: Canola mixed after choppy day

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were narrowly mixed at Tuesday’s close, after bouncing around both sides of unchanged in choppy activity.

Gains in Chicago Board of Trade soybeans and weakness in the Canadian dollar provided support for most of the day, with fund buying also underpinning the futures as speculators built on their net long positions, according to participants.

However, farmer selling targets were also hit on the move up, and increased hedge pressure tempered the upside. Ample old crop supplies and expectations for increased planted area this spring also weighed on values.

About 37,304 canola contracts traded on Tuesday, which compares with Monday when 45,140 contracts changed hands. Spreading accounted for 23,180 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, as declining production prospects in Argentina continued to provide support. Argentina is a major soymeal exporter, and a rally in soymeal helped pull beans up as well.

Supportive chart signals added to the gains in soybeans, as values retested the nearby highs hit yesterday.

However, profit taking and farmer selling put some pressure on values.

CORN futures were at fresh five month highs, with the dryness in Argentina also providing support.

Concerns over excessive rain in Brazil leading to seeding delays for that country’s second corn crop were also supportive.

WHEAT futures were mixed, with gains in the Chicago and Kansas City winter wheat contracts and a softer tone in Minneapolis spring wheat.

Condition ratings for winter wheat continued to deteriorate across the United States Plains, with only 12 per cent of the Kansas crop in the good to excellent category in the U.S. Department of Agriculture’s latest report. That’s down from 14 per cent a month ago and compares with 43 per cent at the same point last year.

Oklahoma’s crop was left unchanged at four per cent good to excellent, which was also well off the level seen last year at this time.

The forecasts remain relatively dry over the next two weeks, which could lead to further condition downgrades.

Cold temperatures in Europe added to the firmer tone in wheat, as many fields could be susceptible to winterkill.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were down 90 cents at US$63.01 per barrel.

In the afternoon, the Canadian dollar was trading around US78.28 cents, down from 78.93 cents the previous trading day. The U.S. dollar was C$1.2775.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 18 517.30s +0.30 +0.06%

Canola May 18 522.00s +0.10 +0.02%

Canola Jul 18 528.10s +1.10 +0.21%

Canola Nov 18 513.60s -0.60 -0.12%

Canola Jan 19 517.30s -0.90 -0.17%

 

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

Soybeans Mar 18 1038-0s +3-6 +0.36%

Soybeans May 18 1049-4s +3-4 +0.33%

Soybeans Jul 18 1058-4s +3-2 +0.31%

Soybeans Aug 18 1058-0s +2-6 +0.26%

Soybeans Sep 18 1043-4s +2-2 +0.22%

 

Soybean Meal Mar 18 386.5s +9.3 +2.47%

Soybean Meal May 18 389.2s +8.9 +2.34%

Soybean Meal Jul 18 386.4s +7.6 +2.01%

 

Soybean Oil Mar 18 32.19s -0.43 -1.32%

Soybean Oil May 18 32.40s -0.46 -1.40%

Soybean Oil Jul 18 32.58s -0.45 -1.36%

 

Corn Mar 18 370-4s +2-0 +0.54%

Corn May 18 379-2s +2-0 +0.53%

Corn Jul 18 387-0s +2-0 +0.52%

Corn Sep 18 393-0s +1-4 +0.38%

Corn Dec 18 400-0s +1-0 +0.25%

 

Oats Mar 18 260-0s -2-4 -0.95%

Oats May 18 269-6s +2-2 +0.84%

Oats Jul 18 272-0s +5-2 +1.97%

Oats Sep 18 267-4s +6-6 +2.59%

Oats Dec 18 264-2s +6-6 +2.62%

 

Wheat Mar 18 463-2s +3-6 +0.82%

Wheat May 18 477-0s +4-2 +0.90%

Wheat Jul 18 491-2s +3-6 +0.77%

Wheat Sep 18 507-4s +3-4 +0.69%

Wheat Dec 18 529-0s +3-2 +0.62%

 

Minneapolis

Spring Wheat Mar 18 596-4s +0-4 +0.08%

Spring Wheat May 18 609-0s -0-6 -0.12%

Spring Wheat Jul 18 618-2s -1-4 -0.24%

Spring Wheat Sep 18 625-4s -1-2 -0.20%

Spring Wheat Dec 18 635-4s -0-6 -0.12%

 

Kansas City

Hard Red Wheat Mar 18 489-0s +11-2 +2.35%

Hard Red Wheat May 18 504-6s +11-2 +2.28%

Hard Red Wheat Jul 18 522-4s +10-6 +2.10%

Hard Red Wheat Sep 18 539-2s +9-6 +1.84%

Hard Red Wheat Dec 18 559-0s +8-6 +1.59%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 18 128.025s +0.625 +0.49%

Live Cattle Apr 18 124.250s +0.250 +0.20%

Live Cattle Jun 18 116.350s +0.150 +0.13%

 

Feeder Cattle Mar 18 146.550s +1.000 +0.69%

Feeder Cattle Apr 18 149.200s +1.250 +0.84%

Feeder Cattle May 18 150.250s +1.300 +0.87%

 

Lean Hogs Apr 18 69.950s unch unch

Lean Hogs May 18 76.400s -0.050 -0.07%

Lean Hogs Jun 18 82.025s -0.275 -0.33%

 

About the author

By Phil Franz-Warkentin Commodity News Service Canada's recent articles

Comments

Markets at a glance

Copyright © 2018. 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