Winnipeg – ICE Futures canola contracts remained pointed higher on Thursday, as poor weather continued to delay harvest operations across the Canadian Prairies.
The cool and wet conditions across much of Western Canada have raised concerns over yield and quality losses as the harvest drags on. The weekly Saskatchewan crop report, released earlier Thursday, estimated that just over half of the canola crop was still waiting to be harvested in the province. That compares with the previous year, when canola was already 68 per cent harvested by this time.
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Weakness in the Canadian dollar contributed to the firmer tone in canola.
Chart-based buying was also supportive, as prices moved above key moving averages and brought in some speculative short-covering, according to a trader.
However, ideas that canola remains expensive compared to other oilseeds tempered the advances.
About 16,489 canola contracts traded, which compares with Wednesday when 16,698 contracts changed hands. Spreading accounted for 7,348 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, underpinned by solid export demand and supportive technical signals.
The United States Department of Agriculture reported weekly U.S. soybean export sales of 870,000 tonnes, which were in line with trade expectations.
While the ongoing trade dispute between the U.S. and China continues to weigh on the market, other customers are coming forward to pick up U.S. soybeans at these cheaper price levels.
CORN futures were also higher on the back of export demand, with weekly U.S. corn export sales of 1.7 million tonnes well above average trade estimates.
Production issues in South American over the past year have shifted more global corn demand to the U.S., and traders expect to see a slightly tighter supply situation in the U.S. as a result when the USDA releases its quarterly stocks report on Friday.
WHEAT futures were mixed, with losses in the winter wheats and gains in Minneapolis spring wheat.
The International Grains Council raised their estimate for world wheat production this year to 717 million tonnes, which would be up by a million tonnes from an earlier estimate. The IGC raised its world wheat ending stocks forecast by 2 million tonnes, to 250 million tonnes.
U.S. quarterly wheat stocks are also generally expected to be up slightly on the year in tomorrow’s report.
Weekly U.S. wheat export sales of about 660,000 tonnes came in at the higher end of market guesses, providing some support.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up 55 cents at US$72.12 per barrel.
In the afternoon, the Canadian dollar was trading around US76.66 cents, down from 77.07 cents the previous trading day. The U.S. dollar was C$1.3045.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Nov 18 498.40s +3.70 +0.75%
Canola Jan 19 505.20s +3.70 +0.74%
Canola Mar 19 511.40s +3.60 +0.71%
Canola May 19 515.60s +3.60 +0.70%
Canola Jul 19 518.80s +3.20 +0.62%
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 Nov 18 855-0s +5-0 +0.59%
Soybeans Jan 19 869-0s +5-2 +0.61%
Soybeans Mar 19 882-0s +5-4 +0.63%
Soybeans May 19 895-2s +5-4 +0.62%
Soybeans Jul 19 905-2s +5-0 +0.56%
Soybean Meal Oct 18 308.2s +0.5 +0.16%
Soybean Meal Dec 18 311.8s +0.9 +0.29%
Soybean Meal Jan 19 312.6s +0.8 +0.26%
Soybean Oil Oct 18 28.86s +0.38 +1.33%
Soybean Oil Dec 18 29.15s +0.36 +1.25%
Soybean Oil Jan 19 29.40s +0.36 +1.24%
Corn Dec 18 364-6s +1-6 +0.48%
Corn Mar 19 376-4s +1-4 +0.40%
Corn May 19 384-0s +1-4 +0.39%
Corn Jul 19 389-2s +1-4 +0.39%
Corn Sep 19 392-6s +1-2 +0.32%
Oats Dec 18 260-2s +1-6 +0.68%
Oats Mar 19 262-0s -0-4 -0.19%
Oats May 19 265-2s -1-2 -0.47%
Oats Jul 19 269-6s -0-4 -0.19%
Oats Sep 19 273-2s unch unch
Wheat Dec 18 513-0s -4-4 -0.87%
Wheat Mar 19 530-6s -5-2 -0.98%
Wheat May 19 541-2s -6-0 -1.10%
Wheat Jul 19 542-2s -6-0 -1.09%
Wheat Sep 19 553-0s -5-4 -0.98%
Minneapolis
Spring Wheat Dec 18 580-0s +2-4 +0.43%
Spring Wheat Mar 19 594-0s +2-0 +0.34%
Spring Wheat May 19 601-0s +1-2 +0.21%
Spring Wheat Jul 19 607-0s +0-4 +0.08%
Spring Wheat Sep 19 612-0s +1-0 +0.16%
Kansas City
Hard Red Wheat Dec 18 517-2s -3-6 -0.72%
Hard Red Wheat Mar 19 540-4s -3-6 -0.69%
Hard Red Wheat May 19 553-2s -3-4 -0.63%
Hard Red Wheat Jul 19 553-2s -3-6 -0.67%
Hard Red Wheat Sep 19 565-2s -3-6 -0.66%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Oct 18 113.225s -0.650 -0.57%
Live Cattle Dec 18 118.575s -0.275 -0.23%
Live Cattle Feb 19 122.550s -0.325 -0.26%
Feeder Cattle Sep 18 157.300s +0.250 +0.16%
Feeder Cattle Oct 18 157.850s -0.450 -0.28%
Feeder Cattle Nov 18 157.625s -0.625 -0.39%
Lean Hogs Oct 18 61.300s -0.900 -1.45%
Lean Hogs Dec 18 55.475s -1.750 -3.06%
Lean Hogs Feb 19 63.475s -1.425 -2.20%
