Oils drop again; dryness beginning to be a worry

WINNIPEG – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Thursday, as lower soybeans prices at the Chicago Board of Trade weighed on values.

The July contract fell C$4.00 at C$441.80 per tonne. The November contract dropped C$3.60 at C$455.00 per tonne.

Dryness across much of Western Canada has been supportive of prices. The dry conditions have greatly helped farmers with seeding this spring, but unless there is rain soon, the crops will have trouble germinating and growing.

There were 16,078 contracts traded on Thursday, which compares with Wednesday when 15,274 contracts changed hands. Spreading accounted for 7,936 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jul 441.80 dn 4.00
Nov 455.00 dn 3.60
Jan 460.40 dn 3.70
Mar 465.70 dn 3.70

SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday, largely on fears of a global economic slump if the United States/China trade war continues.

Secretary of Agriculture Sonny Perdue announced a US$16 billion aid package that has allocated US$14.5 billion in direct payments to U.S. farmers. The secretary didn’t cite any specific amounts for the 26 different crops to be covered. Rather farmers will get, “a payment based on a single county rate multiplied by a farm’s total planting to those crops in aggregate in 2019. The method apparently will not distort planting decisions and Perdue said, “total payment eligible plantings cannot exceed total 2018 plantings.”

Prior to the secretary’s announcement it was believed soybean farmers would get $2 per bushel, based on the amount bean prices have dropped since the U.S./China trade war began.

Also today, the U.S. Department of Agriculture (USDA) announced weekly export sales of almost 541,000 tonnes of soybeans, of which less than one per cent was new crop.

Soymeal exports came to 300,000 tonnes of which 37.3 per cent was new crop.

CORN futures were lower on Thursday, due to spillover from soybeans.

The USDA reported weekly export sales of corn to be 442,100 tonnes, well within market predictions.

Ethanol production in the U.S increased by 20,000 barrels to 1.07 million barrels per day.

China’s grain imports jumped 75 per cent year-over-year in April to 1.65 million tonnes. Also, China auctioned off almost 3.620 million tonnes of its corn reserves on Thursday.

WHEAT futures were also lower on Thursday, due to spillover from soybeans and from technical selling.

The USDA reported weekly export sales of 393,300 tonnes of wheat, of which nearly 88 per cent was new crop.

Russian wheat sales have been slow in May, at 900,000 tonnes. That’s about half of the country’s April sales.

China wheat imports increased 23 per cent to 1.25 million tonnes so far in 2019.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $3.51 at US$57.91 per barrel.

In the afternoon, the Canadian dollar was trading around US74.19 cents, down from 74.57 cents the previous trading day. The U.S. dollar was C$1.3478.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 19 441.80s -4.00 -0.90%

Canola Nov 19 455.00s -3.60 -0.78%

Canola Jan 20 460.40s -3.70 -0.80%

Canola Mar 20 465.70s -3.70 -0.79%

Canola May 20 470.50s -3.80 -0.80%

 

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 Jul 19 821-4s -7-0 -0.84%

Soybean Aug 19 828-2s -7-2 -0.87%

Soybean Sep 19 835-2s -7-0 -0.83%

Soybean Nov 19 848-2s -7-0 -0.82%

Soybean Jan 20 860-2s -7-0 -0.81%

 

Soybean Meal Jul 19 297.2s -1.1 -0.37%

Soybean Meal Aug 19 298.9s -1.0 -0.33%

Soybean Meal Sep 19 300.7s -1.0 -0.33%

 

Soybean Oil Jul 19 26.78s -0.53 -1.94%

Soybean Oil Aug 19 26.91s -0.52 -1.90%

Soybean Oil Sep 19 27.05s -0.51 -1.85%

 

Corn Jul 19 389-6s -4-6 -1.20%

Corn Sep 19 398-4s -5-2 -1.30%

Corn Dec 19 408-0s -4-6 -1.15%

Corn Mar 20 419-2s -3-4 -0.83%

Corn May 20 423-4s -2-6 -0.65%

 

Oats Jul 19 304-4s -5-6 -1.85%

Oats Sep 19 286-0s -5-0 -1.72%

Oats Dec 19 276-2s -4-2 -1.52%

Oats Mar 20 277-2s -2-4 -0.89%

Oats May 20 274-6s -1-0 -0.36%

 

Wheat Jul 19 470-2s -2-4 -0.53%

Wheat Sep 19 478-2s -2-4 -0.52%

Wheat Dec 19 492-4s -1-6 -0.35%

Wheat Mar 20 506-0s -1-0 -0.20%

Wheat May 20 512-4s +0-2 +0.05%

 

Minneapolis

Spring Wheat Jul 19 534-2s -9-4 -1.75%

Spring Wheat Sep 19 542-2s -9-6 -1.77%

Spring Wheat Dec 19 555-0s -8-6 -1.55%

Spring Wheat Mar 20 568-4s -8-4 -1.47%

Spring Wheat May 20 577-2s -7-4 -1.28%

 

Kansas City

Hard Red Wheat Jul 19 425-2s -7-0 -1.62%

Hard Red Wheat Sep 19 436-6s -6-2 -1.41%

Hard Red Wheat Dec 19 458-6s -5-2 -1.13%

Hard Red Wheat Mar 20 480-4s -3-6 -0.77%

Hard Red Wheat May 20 495-0s -2-4 -0.50%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 19 110.800s +0.150 +0.14%

Live Cattle Aug 19 108.150s +0.200 +0.19%

Live Cattle Oct 19 108.050s +0.250 +0.23%

 

Feeder Cattle May 19 135.600s +0.150 +0.11%

Feeder Cattle Aug 19 143.025s +0.425 +0.30%

Feeder Cattle Sep 19 144.000s +0.125 +0.09%

 

Lean Hogs Jun 19 89.425s -0.225 -0.25%

Lean Hogs Jul 19 90.950s -0.100 -0.11%

Lean Hogs Aug 19 92.300s +0.125 +0.14%

 

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