Lower dollar, higher soy boosts canola futures

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Friday, thanks to a lower Canadian dollar and spillover support from soybeans on the Chicago Board of Trade.
The Canadian dollar was around 76 U.S. cents earlier in the week, but settled down to around 75.4 cents on Friday afternoon, supporting canola values.
Canola values found spillover strength from soybeans on the Chicago Board of Trade, which have been trending higher for most of the week.
Rumours of an impending trade deal between the U.S. and China are also propping up soybean prices. Yesterday, a purchase of over 600,000 tonnes of soybeans was made by a Chinese importer, which is the largest sale in over a year.

On Friday, 42,153 contracts were traded, which compares with Thursday when 28,025 contracts changed hands. Spreading accounted for 33,080 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) held on to gains on Friday, following a supportive World Agriculture Supply Demand Estimate (WASDE) report from the United States Department of Agriculture (USDA).
The report estimated soybean output to be around 3.63 billion bushels, which is lower than the August estimate of 3.68 billion bushels.
Rumours of an impending trade deal between the U.S. and China also propped up soybean prices.
Yesterday, a purchase of over 600,000 tonnes of soybeans was made by a Chinese importer, which is the largest sale in over a year. Additionally, 204,000 tonnes of soybeans were purchased by China on Friday morning.
China announced it will exempt American soybean and pork from its latest round of tariffs, which will likely ease some tension between the two countries ahead of trade negotiations next month.

CORN futures were dragged down on Friday due to reports of large carryout stocks. In the WASDE released yesterday, the USDA added 85 million bushels to 2018-2019 ending stocks, due mostly to cuts in ethanol production.

Warm temperatures forecast for the Corn Belt may assist late-developing crops in the region.
Expected yields for the corn crop are around 168.2 bushels per acre, which is lower than the August estimate of 169.5 bushels per acre.
WHEAT futures were slightly lower on Friday, as U.S. yield estimates stayed the same from previous reports.
However, the WASDE did lower production estimates for Australian, Ukrainian and Russian wheat crops. Both Russia and Ukraine estimates were down by half a million metric tonnes each, to 28.7 million tonnes and 72.5 million tonnes respectively. Due to drought conditions, Australian wheat yields were cut by two million tonnes to 19 million tonnes.

Name / Contract Last Change % Change
Canola Nov 19 449.80s +2.70 +0.60%
Canola Jan 20 458.00s +2.90 +0.64%
Canola Mar 20 465.80s +3.30 +0.71%
Canola May 20 471.60s +3.10 +0.66%
Canola Jul 20 477.00s +2.90 +0.61%
Soybean Sep 19 884-6s +1-6 +0.20%
Soybean Nov 19 898-6s +3-2 +0.36%
Soybean Jan 20 912-2s +3-2 +0.36%
Soybean Mar 20 924-0s +2-6 +0.30%
Soybean May 20 934-6s +2-4 +0.27%
Soybean Meal Sep 19 298.2s +2.1 +0.71%
Soybean Meal Oct 19 297.9s +0.3 +0.10%
Soybean Meal Dec 19 301.5s +0.2 +0.07%
Soybean Oil Sep 19 28.94s -0.08 -0.28%
Soybean Oil Oct 19 29.29s +0.28 +0.97%
Soybean Oil Dec 19 29.43s +0.27 +0.93%
Corn Sep 19 355-4s +1-0 +0.28%
Corn Dec 19 368-6s +1-4 +0.41%
Corn Mar 20 381-4s +1-6 +0.46%
Corn May 20 390-4s +1-4 +0.39%
Corn Jul 20 397-0s +1-0 +0.25%
Oats Sep 19 290-2s unch unch
Oats Dec 19 280-4s -2-4 -0.88%
Oats Mar 20 280-2s -2-6 -0.97%
Oats May 20 278-2s -2-6 -0.98%
Oats Jul 20 278-0s -2-4 -0.89%
Wheat Sep 19 485-6s unch unch
Wheat Dec 19 483-4s -0-2 -0.05%
Wheat Mar 20 489-4s +0-2 +0.05%
Wheat May 20 494-0s +0-6 +0.15%
Wheat Jul 20 497-4s +1-2 +0.25%
Spring Wheat Sep 19 493-0s -2-2 -0.45%
Spring Wheat Dec 19 505-4s -1-6 -0.34%
Spring Wheat Mar 20 520-4s -1-4 -0.29%
Spring Wheat May 20 532-0s -1-4 -0.28%
Spring Wheat Jul 20 543-0s -1-4 -0.28%
Hard Red Wheat Sep 19 383-4s +3-4 +0.92%
Hard Red Wheat Dec 19 399-6s -3-6 -0.93%
Hard Red Wheat Mar 20 414-0s -3-4 -0.84%
Hard Red Wheat May 20 424-4s -3-4 -0.82%
Hard Red Wheat Jul 20 434-6s -3-2 -0.74%
Live Cattle (Pit) Oct 19 98.075s -0.650 -0.66%
Live Cattle (Pit) Dec 19 104.375s -0.575 -0.55%
Live Cattle (Pit) Feb 20 111.100s -0.100 -0.09%
Feeder Cattle (Pit) Sep 19 136.500s -0.350 -0.26%
Feeder Cattle (Pit) Oct 19 134.575s +0.075 +0.06%
Feeder Cattle (Pit) Nov 19 134.025s +0.125 +0.09%
Lean Hogs (Pit) Oct 19 66.475s +3.300 +5.22%
Lean Hogs (Pit) Dec 19 68.700s +4.500 +7.01%
Lean Hogs (Pit) Feb 20 75.100s +4.500 +6.37%

 

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