Harvest delays supporting canola futures

Winnipeg, (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, seeing some follow-through speculative buying after Monday’s rally.

Harvest delays and quality concerns following recent snow, rain, and cold temperatures across parts of the Prairies remained supportive, according to traders.

Continued strength in Chicago Board of Trade soybeans also helped underpin canola, according to participants.

However, forecasts calling for warmer and drier weather later in the week tempered the upside. Large old crop supplies, a softer tone in CBOT soyoil, and firmness in the Canadian dollar also weighed on values.

About 28,504 canola contracts traded on Tuesday, which compares with Monday when 37,686 contracts changed hands. Spreading accounted for 19,160 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, as Monday’s move to fresh two month highs was bullish from a chart standpoint and encouraged more speculative short-covering.

The United States soybean crop was seven percent harvested in the latest weekly U.S. Department of Agriculture crop report, which compares with the average for this time of year of 20 percent done.

Development was also delayed with 55 percent of the crop dropping leaves as of this past Sunday. That compares with the average of 70 percent. Condition ratings did improve slightly though, with 55 percent rated good to excellent.

Talk that China was looking to buy more U.S. beans was supportive. However, Chinese markets were closed today for a national holiday.

CORN futures were also underpinned by yesterday’s bullish stocks report, as the market worked to fill a gap set in early August on the charts.

Development of the U.S. corn crop was running behind average in most areas except Tennessee, according to the weekly USDA report. Only 43 percent of the crop was said to be mature, vs. the 73 percent average.

Corn was 11 percent harvested, about 8 points off the average for this time of year. Condition ratings were left unchanged at 57 percent good to excellent.

WHEAT futures were mixed on Tuesday, with small gains in Chicago soft wheat but losses in the Minneapolis and Kansas City contracts.

Profit-taking on recent gains accounted for some of the selling pressure in the hard wheats.

The U.S. spring wheat crop was 90 percent harvested as of this past Sunday, which was off the average of 99 percent done. The 10 percent remaining was dealing with snow, rain, and cold temperatures, with quality downgrades expected.

 

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 45 cents at US$53.62 per barrel.

In the afternoon, the Canadian dollar was trading around US75.51 cents, unchanged from 75.51 cents the previous trading day. The U.S. dollar was C$1.3244.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 19 452.20s +0.90 +0.20%

Canola Jan 20 461.30s +1.10 +0.24%

Canola Mar 20 469.70s +1.30 +0.28%

Canola May 20 476.50s +1.30 +0.27%

Canola Jul 20 482.20s +1.30 +0.27%

 

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 Nov 19 919-4s +13-4 +1.49%

Soybean Jan 20 932-4s +13-0 +1.41%

Soybean Mar 20 941-4s +11-4 +1.24%

Soybean May 20 949-2s +10-2 +1.09%

Soybean Jul 20 956-4s +9-4 +1.00%

 

Soybean Meal Oct 19 304.1s +8.2 +2.77%

Soybean Meal Dec 19 309.0s +8.0 +2.66%

Soybean Meal Jan 20 310.8s +8.0 +2.64%

 

Soybean Oil Oct 19 28.83s -0.16 -0.55%

Soybean Oil Dec 19 28.88s -0.20 -0.69%

Soybean Oil Jan 20 29.11s -0.20 -0.68%

 

Corn Dec 19 392-4s +4-4 +1.16%

Corn Mar 20 404-4s +5-0 +1.25%

Corn May 20 409-2s +4-0 +0.99%

Corn Jul 20 411-6s +3-2 +0.80%

Corn Sep 20 405-4s +1-0 +0.25%

 

Oats Dec 19 282-0s +6-2 +2.27%

Oats Mar 20 284-6s +5-2 +1.88%

Oats May 20 284-6s +4-4 +1.61%

Oats Jul 20 285-0s +4-4 +1.60%

Oats Sep 20 286-0s +4-4 +1.60%

 

Wheat Dec 19 498-6s +3-0 +0.61%

Wheat Mar 20 505-6s +3-2 +0.65%

Wheat May 20 510-6s +3-4 +0.69%

Wheat Jul 20 514-2s +3-4 +0.69%

Wheat Sep 20 521-6s +3-6 +0.72%

 

Minneapolis

Spring Wheat Dec 19 533-0s -11-4 -2.11%

Spring Wheat Mar 20 547-2s -10-6 -1.93%

Spring Wheat May 20 557-4s -10-4 -1.85%

Spring Wheat Jul 20 566-0s -9-6 -1.69%

Spring Wheat Sep 20 574-4s -8-6 -1.50%

 

Kansas City

Hard Red Wheat Dec 19 411-4s -3-4 -0.84%

Hard Red Wheat Mar 20 424-0s -4-2 -0.99%

Hard Red Wheat May 20 433-2s -4-2 -0.97%

Hard Red Wheat Jul 20 442-2s -4-2 -0.95%

Hard Red Wheat Sep 20 453-2s -4-2 -0.93%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Oct 19 104.625s +0.050 +0.05%

Live Cattle Dec 19 109.825s -0.475 -0.43%

Live Cattle Feb 20 116.050s -0.575 -0.49%

 

Feeder Cattle Oct 19 140.975s -1.425 -1.00%

Feeder Cattle Nov 19 140.175s -1.750 -1.23%

Feeder Cattle Jan 20 136.975s -1.350 -0.98%

 

Lean Hogs Oct 19 62.550s -2.900 -4.43%

Lean Hogs Dec 19 69.925s -2.675 -3.68%

Lean Hogs Feb 20 76.100s -1.900 -2.44%

 

 

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