Oils rise with buoyant markets

ICE Futures canola contracts were stronger on Monday, as sharp gains in Chicago Board of Trade soyoil and soybean contracts provided spillover support.

The United States markets strengthened on news that the U.S. and China had reached a trade truce over the weekend. While there was little concrete information beyond an agreement to delay additional tariffs for 90 days, tweets from U.S. President Donald Trump were enough to support soybeans, with some of that buying interest spilling into canola.

However, the activity in the financial markets also caused the Canadian dollar to climb higher relative to its U.S. counterpart. The rising currency weighed on crush margins and limited the upside in canola.

Large visible supplies and a lack of significant end user demand put some pressure on values.

Statistics Canada releases its latest production estimates on Thursday, Dec. 3, and pre-report positioning accounted for some of the activity.

About 24,661 canola contracts traded, which compares with Friday when 16,623 contracts changed hands. Spreading accounted for 15,698 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, as news of a temporary trade truce between the United States and China provided support.

China will reportedly be buying agricultural products from the U.S., but whether or not that translates into a substantial increase in soybean exports remains to be seen.

Large South American crop prospects tempered the upside in soybeans, as cheaper soybeans from Brazil and Argentina continue to compete with U.S. supplies.

CORN futures were also boosted by the trade optimism. There were ideas that China could buy some more U.S. sorghum, which would underpin corn as well.

However, ongoing concerns over the African swine fever in China and the possibility of reduced feed demand in the country tempered the advances.

WHEAT futures were stronger on the day, seeing some follow-through buying interest after Friday’s advances.

U.S. wheat exports have shown some improvement lately, with the latest inspections data showing export inspections of nearly half-a-million tonnes in the past week.

Declining production estimates out of Australia were also supportive.

However, Russia continues to be active on the world export market which was seen as limiting the upside in the futures.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up $2.02 at US$52.95 per barrel.

In the afternoon, the Canadian dollar was trading around US75.81 cents, down from 75.18 cents the previous trading day. The U.S. dollar was C$1.3191.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 19 481.70s +2.30 +0.48%

Canola Mar 19 488.70s +2.20 +0.45%

Canola May 19 496.00s +1.80 +0.36%

Canola Jul 19 502.00s +1.80 +0.36%

Canola Nov 19 496.80s +0.70 +0.14%

 

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 19 905-6s +11-0 +1.23%

Soybeans Mar 19 917-6s +10-2 +1.13%

Soybeans May 19 930-6s +10-2 +1.11%

Soybeans Jul 19 942-6s +10-2 +1.10%

Soybeans Aug 19 947-0s +10-2 +1.09%

 

Soybean Meal Dec 18 312.1s +3.8 +1.23%

Soybean Meal Jan 19 314.4s +3.9 +1.26%

Soybean Meal Mar 19 317.1s +3.9 +1.25%

 

Soybean Oil Dec 18 28.31s +0.49 +1.76%

Soybean Oil Jan 19 28.57s +0.51 +1.82%

Soybean Oil Mar 19 28.78s +0.48 +1.70%

 

Corn Dec 18 371-2s +4-6 +1.30%

Corn Mar 19 382-0s +4-2 +1.13%

Corn May 19 389-2s +4-2 +1.10%

Corn Jul 19 396-2s +4-6 +1.21%

Corn Sep 19 397-6s +3-6 +0.95%

 

Oats Dec 18 286-6s -1-4 -0.52%

Oats Mar 19 294-4s +2-2 +0.77%

Oats May 19 295-6s +1-6 +0.60%

Oats Jul 19 289-2s +2-2 +0.78%

Oats Sep 19 278-2s +1-6 +0.63%

 

Wheat Dec 18 515-6s unch unch

Wheat Mar 19 521-2s +5-4 +1.07%

Wheat May 19 527-4s +6-2 +1.20%

Wheat Jul 19 533-6s +6-4 +1.23%

Wheat Sep 19 543-0s +6-6 +1.26%

 

Minneapolis

Spring Wheat Dec 18 590-2s +7-0 +1.20%

Spring Wheat Mar 19 582-4s +6-6 +1.17%

Spring Wheat May 19 587-2s +5-6 +0.99%

Spring Wheat Jul 19 593-6s +4-6 +0.81%

Spring Wheat Sep 19 601-0s +4-4 +0.75%

 

Kansas City

Hard Red Wheat Dec 18 484-0s -2-4 -0.51%

Hard Red Wheat Mar 19 506-4s +6-2 +1.25%

Hard Red Wheat May 19 519-4s +8-2 +1.61%

Hard Red Wheat Jul 19 530-0s +8-4 +1.63%

Hard Red Wheat Sep 19 543-0s +9-0 +1.69%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 18 116.875s -0.050 -0.04%

Live Cattle Feb 19 120.175s -0.325 -0.27%

Live Cattle Apr 19 121.625s -0.375 -0.31%

 

Feeder Cattle Jan 19 144.500s -0.725 -0.50%

Feeder Cattle Mar 19 141.450s -1.400 -0.98%

Feeder Cattle Apr 19 142.350s -1.275 -0.89%

 

Lean Hogs Dec 18 58.025s +0.150 +0.26%

Lean Hogs Feb 19 66.900s -0.650 -0.96%

Lean Hogs Apr 19 71.225s -0.750 -1.04%

 

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By Phil Franz-Warkentin Commodity News Service Canada's recent articles

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