Lower dollar helps canola futures

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished higher on Friday, regaining some ground after considerable losses incurred yesterday.

The Canadian dollar has dipped below 72 U.S. cents, the lowest point in several years. That provided a bit of a boost to canola prices.

Significant uncertainty posed by the COVID-19 coronavirus has sidelined many market participants. The Canadian government has advised Canadians to avoid all non-essential travel.

The Bank of Canada lowered its target for the overnight interest rate by 50 basis points to .75 per cent.

In a press release, the Bank of Canada said “this unscheduled rate decision is a proactive measure taken in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices.”

On Friday, 23,060 contracts were traded, which compares with Thursday when 20,881 contracts changed hands. Spreading accounted for 13,706 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) finished lower on Friday, pressured by large global stocks and low demand.

Argentina’s agriculture ministry has lowered soybean production estimates by 2.5 million tonnes to total 52 million tonnes.

Last week, according to the United States Department of Agriculture (USDA), soybean export sales totaled just over 302,000 tonnes. It’s a new low for the 2019-2020 marketing year.

CORN futures were higher on Friday, due to strength in export demand.

This morning, the USDA announced a private export sale of 136,000 tonnes of corn, purchased by South Korea.

Last week, export sales totaled 1.47 million tonnes, which was an increase of 91 per cent from the prior week. It’s also a 12-week high.

WHEAT futures were mixed to end the week, with Chicago Wheat showing modest strength and slight weakness in Minneapolis and Kansas City.

Japan issued their weekly wheat tender, seeking over 100,000 tonnes of wheat from the U.S., Canada, and Astralia.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 23 cents at US$31.73 per barrel.

In the afternoon, the Canadian dollar was trading around US71.94 cents, down from 72.36 cents the previous trading day. The U.S. dollar was C$1.3901.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 20 454.20s +2.60 +0.58%

Canola May 20 453.60s +2.60 +0.58%

Canola Jul 20 461.80s +2.50 +0.54%

Canola Nov 20 470.50s +1.90 +0.41%

Canola Jan 21 477.90s +2.60 +0.55%

 

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 20 846-6s -8-2 -0.96%

Soybean May 20 848-6s -10-6 -1.25%

Soybean Jul 20 856-0s -9-6 -1.13%

Soybean Aug 20 859-4s -8-6 -1.01%

Soybean Sep 20 860-4s -8-4 -0.98%

 

Soybean Meal Mar 20 295.9s -2.7 -0.90%

Soybean Meal May 20 299.5s -3.3 -1.09%

Soybean Meal Jul 20 301.0s -3.2 -1.05%

 

Soybean Oil Mar 20 26.11s -0.04 -0.15%

Soybean Oil May 20 26.37s -0.01 -0.04%

Soybean Oil Jul 20 26.74s unch unch

 

Corn Mar 20 370-6s +1-0 +0.27%

Corn May 20 365-6s unch unch

Corn Jul 20 368-4s -0-2 -0.07%

Corn Sep 20 367-6s +0-2 +0.07%

Corn Dec 20 373-0s +1-2 +0.34%

 

Oats Mar 20 268-4s unch unch

Oats May 20 268-2s -6-6 -2.45%

Oats Jul 20 269-4s -5-6 -2.09%

Oats Sep 20 259-6s -6-2 -2.35%

Oats Dec 20 260-0s -4-6 -1.79%

 

Wheat Mar 20 514-6s +6-4 +1.28%

Wheat May 20 506-0s +0-4 +0.10%

Wheat Jul 20 507-0s +0-2 +0.05%

Wheat Sep 20 513-0s -0-4 -0.10%

Wheat Dec 20 523-6s -1-4 -0.29%

 

Minneapolis

Spring Wheat Mar 20 498-2s -1-0 -0.20%

Spring Wheat May 20 508-0s -1-0 -0.20%

Spring Wheat Jul 20 518-2s -2-0 -0.38%

Spring Wheat Sep 20 528-4s -2-2 -0.42%

Spring Wheat Dec 20 543-6s -1-4 -0.28%

 

Kansas City

Hard Red Wheat Mar 20 431-2s unch unch

Hard Red Wheat May 20 431-4s -1-2 -0.29%

Hard Red Wheat Jul 20 438-4s -1-2 -0.28%

Hard Red Wheat Sep 20 447-4s -1-4 -0.33%

Hard Red Wheat Dec 20 461-0s -1-2 -0.27%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 20 95.575s -4.500 -4.50%

Live Cattle Jun 20 89.750s -4.500 -4.77%

Live Cattle Aug 20 89.175s -4.500 -4.80%

 

Feeder Cattle Mar 20 113.000s -5.825 -4.90%

Feeder Cattle Apr 20 112.600s -6.425 -5.40%

Feeder Cattle May 20 114.475s -6.275 -5.20%

 

Lean Hogs Apr 20 56.375s -4.500 -7.39%

Lean Hogs May 20 62.700s -4.500 -6.70%

Lean Hogs Jun 20 71.300s -4.500 -5.94%

 

 

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