Large supplies weaken canola contracts

Winnipeg – ICE Futures canola contracts were weaker on Tuesday, taking back most of Monday’s gains as confirmation of large supplies weighed on values.

Statistics Canada reported record high canola stocks in the country as of Dec. 31, at 14.5 million tonnes. The burdensome stocks were generally in line with market expectations given the slow export pace this year.

Early losses in Chicago Board of Trade soybeans added to the softer tone in canola.

However, soybeans managed to turn higher by the close. Gains in soyoil and weakness in the Canadian dollar were also supportive, with crush margins improving on the day.

About 12,867 canola contracts traded on Tuesday, which compares with Monday when 14,791 contracts changed hands. Spreading accounted for 11,222 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade settled with small gains in the most active front months after trading to both sides of unchanged throughout the session.

The United States Department of Agriculture announced large sales of 2.6 million tonnes of soybeans to China this morning, but that business was anticipated and did little to move the market. An additional 274,000 tonnes were also sold to other unknown destinations.

The latest sales to China were tied to promises made following last week’s trade talks between China and the U.S., and more sales will be needed to cut into the large U.S. supplies.

The USDA will release its monthly supply/demand report on Friday, along with some data from January that was delayed due to the government shutdown. Uncertainty ahead of those reports had traders reluctant to push values too far one way or the other as they square positions.

CORN futures held onto small gains, with positioning ahead of Friday’s reports a feature.

Corn remains stuck in a sideways trading range, looking for some fresh news to push it one way or the other.

WHEAT futures were narrowly mixed on the day.

Canadian wheat stocks as of Dec. 31 came in at 23.2 million tonnes, which was in line with market expectations, and the year ago level.

U.S. wheat stocks data will be out on Friday, and general expectations are for bigger supplies on hand this year compared to a year ago.

Friday’s USDA reports will also include winter wheat acreage estimates, which could provide some direction for the futures.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 90 cents at US$53.66 per barrel.

In the afternoon, the Canadian dollar was trading around US76.14 cents, up from 76.18 cents the previous trading day. The U.S. dollar was C$1.3134.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 19 482.60s -1.30 -0.27%

Canola May 19 490.50s -1.30 -0.26%

Canola Jul 19 497.60s -1.50 -0.30%

Canola Nov 19 494.90s -1.70 -0.34%

Canola Jan 20 499.70s -1.50 -0.30%

 

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 Mar 19 920-2s +1-6 +0.19%

Soybean May 19 934-2s +1-6 +0.19%

Soybean Jul 19 947-4s +2-4 +0.26%

Soybean Aug 19 952-4s +2-2 +0.24%

Soybean Sep 19 954-4s +2-2 +0.24%

 

Soybean Meal Mar 19 309.5s -1.1 -0.35%

Soybean Meal May 19 313.5s -1.1 -0.35%

Soybean Meal Jul 19 317.5s -0.9 -0.28%

 

Soybean Oil Mar 19 30.38s +0.25 +0.83%

Soybean Oil May 19 30.68s +0.24 +0.79%

Soybean Oil Jul 19 30.98s +0.24 +0.78%

 

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

Corn May 19 389-0s +1-4 +0.39%

Corn Jul 19 396-4s +1-2 +0.32%

Corn Sep 19 399-0s +0-6 +0.19%

Corn Dec 19 403-4s +1-0 +0.25%

 

Oats Mar 19 291-2s +2-2 +0.78%

Oats May 19 291-2s +1-6 +0.60%

Oats Jul 19 290-0s +1-6 +0.61%

Oats Sep 19 281-0s +1-6 +0.63%

Oats Dec 19 274-2s unch unch

 

Wheat Mar 19 527-2s +1-4 +0.29%

Wheat May 19 529-2s -0-4 -0.09%

Wheat Jul 19 530-6s -2-4 -0.47%

Wheat Sep 19 536-4s -4-0 -0.74%

Wheat Dec 19 547-6s -4-4 -0.81%

 

Minneapolis

Spring Wheat Mar 19 575-0s +0-2 +0.04%

Spring Wheat May 19 578-4s +0-4 +0.09%

Spring Wheat Jul 19 585-0s -0-2 -0.04%

Spring Wheat Sep 19 590-0s -0-6 -0.13%

Spring Wheat Dec 19 600-6s -1-2 -0.21%

 

Kansas City

Hard Red Wheat Mar 19 511-2s +0-6 +0.15%

Hard Red Wheat May 19 516-4s -1-6 -0.34%

Hard Red Wheat Jul 19 521-4s -5-0 -0.95%

Hard Red Wheat Sep 19 528-4s -7-0 -1.31%

Hard Red Wheat Dec 19 542-0s -7-6 -1.41%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 19 126.700s +0.975 +0.78%

Live Cattle Apr 19 127.625s +0.625 +0.49%

Live Cattle Jun 19 117.400s +0.400 +0.34%

 

Feeder Cattle Mar 19 143.825s -0.400 -0.28%

Feeder Cattle Apr 19 145.450s -0.375 -0.26%

Feeder Cattle May 19 146.050s -0.325 -0.22%

 

Lean Hogs Feb 19 56.425s -0.950 -1.66%

Lean Hogs Apr 19 61.600s -1.450 -2.30%

Lean Hogs May 19 68.725s -1.100 -1.58%

 

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