ICE Futures canola contracts ended higher on Tuesday, as weakness in the Canadian dollar provided support.
The currency fell to its lowest levels relative to its United States counterpart since June 2017, which helped crush margins improve.
Speculators covering short positions, spillover from Chicago Board of Trade soybeans and a seasonal slowdown in farmer selling all contributed to the gains in canola, according to participants.
However, sharp losses in crude oil kept some caution in the market amid concerns that the bearishness in the energy sector could spill into the oilseeds.
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About 36,578 canola contracts traded, which compares with Monday when 31,956 contracts changed hands. Spreading was a major feature of the activity, accounting for 29,052 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted small gains on Tuesday, as talk of additional Chinese business provided some support.
However, there was not confirmation of any fresh sales, as the United States and China continue to work towards a longer-term solution to their trade war.
The U.S. government announced a second round of Market Facilitation Program (MFP) payments on Monday, which are intended to offset the negative impact of Chinese tariffs.
Dryness concerns in parts of Brazil were somewhat supportive, although soybean crops in South America are still expected to be large overall.
CORN futures were steady to higher, with the MFP payments to U.S. farmers also providing some support.
However, large supplies tempered the upside. The U.S. Grain Council estimated that 94 per cent of the country’s corn crop graded as number 2 or better in 2018, with total corn production likely the third largest on record.
Losses in crude oil also weighed on the ethanol-linked grain.
WHEAT futures were weaker on Tuesday; taking back some of their recent advances as speculators adjusted positions.
While U.S. wheat is starting to look more competitive on the international markets, it’s still missing out on some export business.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was down $3.64 at US$46.24 per barrel.
In the afternoon, the Canadian dollar was trading around US74.33 cents, down from 74.63 cents the previous trading day. The U.S. dollar was C$1.3399.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Jan 19 480.30s +1.90 +0.40%
Canola Mar 19 488.40s +2.90 +0.60%
Canola May 19 495.60s +3.20 +0.65%
Canola Jul 19 501.90s +3.60 +0.72%
Canola Nov 19 496.80s +5.60 +1.14%
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 Jan 19 907-6s +3-0 +0.33%
Soybeans Mar 19 920-6s +2-6 +0.30%
Soybeans May 19 934-0s +2-4 +0.27%
Soybeans Jul 19 945-6s +2-6 +0.29%
Soybeans Aug 19 950-2s +3-2 +0.34%
Soybean Meal Jan 19 310.4s +1.3 +0.42%
Soybean Meal Mar 19 314.7s +1.3 +0.41%
Soybean Meal May 19 318.2s +1.1 +0.35%
Soybean Oil Jan 19 28.41s +0.24 +0.85%
Soybean Oil Mar 19 28.67s +0.22 +0.77%
Soybean Oil May 19 28.94s +0.20 +0.70%
Corn Mar 19 385-4s +1-4 +0.39%
Corn May 19 393-4s +1-6 +0.45%
Corn Jul 19 400-0s +1-6 +0.44%
Corn Sep 19 401-2s +1-4 +0.38%
Corn Dec 19 405-0s +1-4 +0.37%
Oats Mar 19 287-0s -1-0 -0.35%
Oats May 19 288-0s -2-6 -0.95%
Oats Jul 19 285-4s -2-6 -0.95%
Oats Sep 19 273-2s -2-0 -0.73%
Oats Dec 19 267-6s -3-2 -1.20%
Wheat Mar 19 532-6s -2-4 -0.47%
Wheat May 19 539-2s -2-4 -0.46%
Wheat Jul 19 545-6s -2-0 -0.37%
Wheat Sep 19 553-0s -1-4 -0.27%
Wheat Dec 19 564-4s -1-4 -0.27%
Minneapolis
Spring Wheat Mar 19 576-6s -8-4 -1.45%
Spring Wheat May 19 582-4s -8-0 -1.35%
Spring Wheat Jul 19 588-4s -8-2 -1.38%
Spring Wheat Sep 19 597-0s -6-4 -1.08%
Spring Wheat Dec 19 609-0s -5-6 -0.94%
Kansas City
Hard Red Wheat Mar 19 517-2s -4-6 -0.91%
Hard Red Wheat May 19 528-4s -5-0 -0.94%
Hard Red Wheat Jul 19 539-4s -4-2 -0.78%
Hard Red Wheat Sep 19 551-2s -4-0 -0.72%
Hard Red Wheat Dec 19 568-0s -3-4 -0.61%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Dec 18 119.775s +0.750 +0.63%
Live Cattle Feb 19 122.575s +1.025 +0.84%
Live Cattle Apr 19 124.600s +0.750 +0.61%
Feeder Cattle Jan 19 146.200s +0.825 +0.57%
Feeder Cattle Mar 19 144.300s +0.975 +0.68%
Feeder Cattle Apr 19 144.950s +0.850 +0.59%
Lean Hogs Feb 19 62.650s -1.175 -1.84%
Lean Hogs Apr 19 67.825s -1.150 -1.67%
Lean Hogs May 19 73.700s -0.950 -1.27%
