Hot weather, Chinese interest pushes canola higher

Winnipeg – Canola contracts on the ICE Futures Canada platform posted modest gains to start the week, following advances in U.S. soybeans.

Hot weather across Western Canada continues to stress dry regions in Saskatchewan and Alberta.

Technical buying was a feature of the day.

There are ideas China is more interested in canola than normal, due to the tariffs on U.S. soybeans.

However, canola is still considered relatively expensive compared to soy.

“There’s room for a bounce but not a lot of room,” said a trader in Winnipeg. “Unless weather issues emerge over the next few weeks.”

Losses in U.S. soyoil also dragged on prices.

About 14,538 canola contracts traded, which compares with Friday when 20,035 contracts changed hands. Spreading accounted for 5,174 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Soybean futures on the Chicago Board of Trade recorded strong gains on Monday, due to short-covering and ideas the market was oversold.

Many countries are stepping up to the plate for U.S. beans with the intention of turning around and selling them to China.

Malaysian palm oil prices are dwelling near their lowest levels in three years, which was bearish.

Corn futures ended relatively unchanged in choppy, technical trade.

Cooler weather has set into the U.S. Corn Belt which should give the plants a rest from the recent heat wave.

Ethanol prices are also solid right now, which was supportive for corn prices.

Hedge funds continue to dump contracts.

Chicago wheat futures softened on Monday due to harvest pressure.

Rain fell over the weekend in Russia, which should help that crop.

According to the Rosario Grain Exchange, Argentina’s wheat crop should top 20 million tonnes this coming harvest, which would be a record for the country.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up xx cents at US$xx.xx per barrel.

In the afternoon, the Canadian dollar was trading around USxx.xx cents, down from xx.xx cents the previous trading day. The U.S. dollar was C$1.xxxx. 1/.7795

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 18 487.40s +2.30 +0.47%

Canola Jan 19 493.40s +1.60 +0.33%

Canola Mar 19 498.90s +1.80 +0.36%

Canola May 19 503.70s +1.90 +0.38%

Canola Jul 19 506.10s +2.30 +0.46%

 

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 Aug 18 829-4s +10-6 +1.31%

Soybeans Sep 18 835-2s +10-6 +1.30%

Soybeans Nov 18 845-6s +11-4 +1.38%

Soybeans Jan 19 856-0s +11-6 +1.39%

Soybeans Mar 19 865-4s +12-0 +1.41%

 

Soybean Meal Aug 18 329.1s +3.1 +0.95%

Soybean Meal Sep 18 328.3s +2.9 +0.89%

Soybean Meal Oct 18 328.1s +3.6 +1.11%

 

Soybean Oil Aug 18 27.64s -0.33 -1.18%

Soybean Oil Sep 18 27.76s -0.32 -1.14%

Soybean Oil Oct 18 27.86s -0.31 -1.10%

 

Corn Sep 18 341-6s +0-4 +0.15%

Corn Dec 18 355-2s +0-4 +0.14%

Corn Mar 19 367-2s +0-6 +0.20%

Corn May 19 374-2s +1-0 +0.27%

Corn Jul 19 380-6s +1-4 +0.40%

 

Oats Sep 18 231-4s -5-4 -2.32%

Oats Dec 18 237-0s -4-6 -1.96%

Oats Mar 19 241-0s -4-4 -1.83%

Oats May 19 242-6s -4-4 -1.82%

Oats Jul 19 247-6s -4-4 -1.78%

 

Wheat Sep 18 488-4s -8-4 -1.71%

Wheat Dec 18 504-0s -8-4 -1.66%

Wheat Mar 19 519-0s -8-4 -1.61%

Wheat May 19 529-6s -8-6 -1.62%

Wheat Jul 19 535-2s -7-4 -1.38%

 

Minneapolis

Spring Wheat Sep 18 528-2s -3-4 -0.66%

Spring Wheat Dec 18 546-0s -3-2 -0.59%

Spring Wheat Mar 19 562-4s -2-2 -0.40%

Spring Wheat May 19 573-2s -1-6 -0.30%

Spring Wheat Jul 19 583-4s -1-2 -0.21%

 

Kansas City

Hard Red Wheat Sep 18 484-4s -7-2 -1.47%

Hard Red Wheat Dec 18 509-0s -7-2 -1.40%

Hard Red Wheat Mar 19 527-2s -7-4 -1.40%

Hard Red Wheat May 19 537-4s -7-6 -1.42%

Hard Red Wheat Jul 19 542-2s -7-6 -1.41%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle   Aug 18 106.925s +2.375 +2.27%

Live Cattle   Oct 18 108.650s +1.275 +1.19%

Live Cattle   Dec 18 112.700s +1.300 +1.17%

 

Feeder Cattle   Aug 18 152.375s +1.650 +1.09%

Feeder Cattle   Sep 18 152.450s +1.375 +0.91%

Feeder Cattle   Oct 18 152.625s +1.275 +0.84%

 

Lean Hogs   Jul 18 79.750s -0.200 -0.25%

Lean Hogs   Aug 18 69.200s -0.950 -1.35%

Lean Hogs   Oct 18 54.000s -1.300 -2.35%

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