Lower CDN dollar boosts canola

Winnipeg – The ICE Futures Canada canola market ended higher on Wednesday, due to action in the Canadian currency. The Canadian dollar was lower, relative to its U.S. counterpart, which made canola more attractive to international buyers.

Gains in the U.S. soy complex were bullish for canola.

Concerns over excess dryness in multiple areas of Western Canada were also supportive for prices.

Global demand for oilseeds remains strong.

However, expectations that this year’s canola plantings will be extremely large, capped the gains. Canola stocks are also on the large side.

The July contract looks to be near the top end of its recently-established range.

Around 13,252 canola contracts were traded on Wednesday, which compares with Tuesday when around 12,609 contracts changed hands. Spreading accounted for 4,350 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Soybean futures continued to rise on Wednesday, after rumours circulated that China bought some soybeans from the United States on Tuesday. There are ideas that an end to the China/U.S. trade dispute could be coming soon.

Planting progress is going slow in Michigan, Minnesota, Wisconsin and the two Dakotas.

A truckers strike continues in Brazil, threatening to delay shipments there.

Corn futures ended higher, taking spillover support from gains in wheat.

The crop in Brazil continues to get revised lower, which was supportive for U.S. corn prices.

Areas of drought in northern Missouri and southern Iowa are creating problems for farmers.

Chicago wheat finished stronger in technical trading on Wednesday.

Forecasts indicate more dry weather is coming to the U.S. Southern Plains next week.

Strength in the U.S. dollar was bearish for wheat exports.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 36 cents at US$71.84 per barrel.

In the afternoon, the Canadian dollar was trading around US77.93 cents, down from 78.00 cents the previous trading day. The U.S. dollar was C$1.2832.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 18 535.20s +2.50 +0.47%

Canola Nov 18 522.70s +3.10 +0.60%

Canola Jan 19 526.90s +2.80 +0.53%

Canola Mar 19 528.90s +2.50 +0.47%

Canola May 19 529.80s +2.20 +0.42%

 

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 Jul 18 1039-2s +8-6 +0.85%

Soybeans Aug 18 1043-2s +9-0 +0.87%

Soybeans Sep 18 1045-0s +9-4 +0.92%

Soybeans Nov 18 1048-6s +9-6 +0.94%

Soybeans Jan 19 1052-0s +9-4 +0.91%

 

Soybean Meal Jul 18 380.7s +3.2 +0.85%

Soybean Meal Aug 18 380.5s +3.0 +0.79%

Soybean Meal Sep 18 379.9s +3.3 +0.88%

 

Soybean Oil Jul 18 31.70s +0.19 +0.60%

Soybean Oil Aug 18 31.82s +0.19 +0.60%

Soybean Oil Sep 18 31.97s +0.18 +0.57%

 

Corn Jul 18 408-4s +3-6 +0.93%

Corn Sep 18 417-2s +3-6 +0.91%

Corn Dec 18 426-4s +3-2 +0.77%

Corn Mar 19 434-2s +3-0 +0.70%

Corn May 19 438-4s +3-0 +0.69%

 

Oats Jul 18 252-0s +2-2 +0.90%

Oats Sep 18 254-4s +2-0 +0.79%

Oats Dec 18 260-2s -0-4 -0.19%

Oats Mar 19 264-4s unch unch

Oats May 19 267-4s unch unch

 

Wheat Jul 18 531-0s +9-4 +1.82%

Wheat Sep 18 547-6s +9-2 +1.72%

Wheat Dec 18 568-2s +8-4 +1.52%

Wheat Mar 19 585-4s +7-4 +1.30%

Wheat May 19 594-6s +6-6 +1.15%

 

Minneapolis

Spring Wheat Jul 18 642-0s +9-0 +1.42%

Spring Wheat Sep 18 646-6s +8-0 +1.25%

Spring Wheat Dec 18 653-2s +6-6 +1.04%

Spring Wheat Mar 19 660-4s +6-4 +0.99%

Spring Wheat May 19 665-4s +6-0 +0.91%

 

Kansas City

Hard Red Wheat Jul 18 551-6s +11-2 +2.08%

Hard Red Wheat Sep 18 570-2s +11-0 +1.97%

Hard Red Wheat Dec 18 595-2s +10-6 +1.84%

Hard Red Wheat Mar 19 612-4s +10-0 +1.66%

Hard Red Wheat May 19 620-2s +8-4 +1.39%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 18 105.450s +0.550 +0.52%

Live Cattle Aug 18 102.800s +2.150 +2.14%

Live Cattle Oct 18 105.750s +1.900 +1.83%

 

Feeder Cattle May 18 134.900s +0.950 +0.71%

Feeder Cattle Aug 18 143.350s +2.625 +1.87%

Feeder Cattle Sep 18 143.300s +2.500 +1.78%

 

Lean Hogs Jun 18 74.600s +1.475 +2.02%

Lean Hogs Jul 18 76.225s +1.100 +1.46%

Lean Hogs Aug 18 75.025s +0.675 +0.91%

 

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