Rain dampens canola futures

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were mostly lower on Thursday, as recent rainfall across much of Western Canada had investors taking some of the weather premiums out of the futures.

The improving moisture conditions also encouraged some farmer selling, according to traders.

Losses in Chicago Board of trade soybeans and soyoil put some spillover pressure on canola as well.

However, weakness in the Canadian dollar provided underlying support. The weakness in the currency was tied to news that the U.S. was moving forward with placing tariffs on Canadian steel and aluminum. Canada announced retaliatory measures of its own, and the uncertain prospects of a trade war between the U.S. and Canada kept some caution in the market.

About 19,308 canola contracts traded, which compares with Wednesday when 28,891 contracts changed hands. Spreading accounted for 12,114 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were mostly lower on Thursday, as persistent concerns over the ongoing trade dispute between the United States and China weighed on values.

The good Midwestern seeding pace was also bearish. More soybean acres could go in the ground, as spring planting runs well ahead of average.

On the other side, a truckers strike in Brazil continued to limit exports from the country, providing some support for the U.S. futures. The poor crop in Argentina also remained supportive. Crushers in the country are only running at 70 per cent capacity, according to a report from the U.S. Department of Agriculture Ag Attaché.

CORN futures were steady to higher, seeing a modest correction after dropping below nearby chart support earlier in the week.

Solid export demand added to the firmer tone, although weekly export data was delayed until Friday due to Monday’s Memorial Day holiday.

WHEAT futures were mostly higher amid ideas that recent losses were overdone. Persistent weather concerns in a number of wheat growing regions of the world also supportive.

The forecasts remain mostly hot and dry through the major U.S. winter wheat growing regions in the southern Plains, while Australia and the Black Sea region also continue to deal with a lack of moisture. Updated production estimates out of Ukraine today predicted a 1.4 million tonne decline in the country’s wheat crop on the year, due to dry weather.

However, conditions were showing some improvement for spring wheat in the northern U.S. and Canada, which put some pressure on the Minneapolis futures.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.17 at US$67.04 per barrel.

In the afternoon, the Canadian dollar was trading around US77.16 cents, down from 77.64 cents the previous trading day. The U.S. dollar was C$1.2960.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 18 534.10s -1.60 -0.30%

Canola Nov 18 524.00s -1.00 -0.19%

Canola Jan 19 529.80s -0.90 -0.17%

Canola Mar 19 533.60s -0.80 -0.15%

Canola May 19 535.10s -0.40 -0.07%

 

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 Jul 18 1018-4s -4-4 -0.44%

Soybeans Aug 18 1023-2s -4-4 -0.44%

Soybeans Sep 18 1027-2s -3-6 -0.36%

Soybeans Nov 18 1034-2s -2-2 -0.22%

Soybeans Jan 19 1039-6s -1-4 -0.14%

 

Soybean Meal Jul 18 375.3s -1.6 -0.42%

Soybean Meal Aug 18 376.2s -1.4 -0.37%

Soybean Meal Sep 18 375.8s -1.3 -0.34%

 

Soybean Oil Jul 18 31.12s -0.36 -1.14%

Soybean Oil Aug 18 31.24s -0.36 -1.14%

Soybean Oil Sep 18 31.39s -0.36 -1.13%

 

Corn Jul 18 394-0s +0-4 +0.13%

Corn Sep 18 403-2s +0-6 +0.19%

Corn Dec 18 413-6s +0-4 +0.12%

Corn Mar 19 422-4s +0-6 +0.18%

Corn May 19 427-4s +0-6 +0.18%

 

Oats Jul 18 244-6s +6-0 +2.51%

Oats Sep 18 252-4s +7-4 +3.06%

Oats Dec 18 250-6s +2-2 +0.91%

Oats Mar 19 254-2s +1-2 +0.49%

Oats May 19 257-2s +1-0 +0.39%

 

Wheat Jul 18 526-2s +4-2 +0.81%

Wheat Sep 18 543-0s +4-0 +0.74%

Wheat Dec 18 562-6s +4-4 +0.81%

Wheat Mar 19 580-2s +5-0 +0.87%

Wheat May 19 589-4s +5-4 +0.94%

 

Minneapolis

Spring Wheat Jul 18 612-0s +0-4 +0.08%

Spring Wheat Sep 18 619-6s +0-4 +0.08%

Spring Wheat Dec 18 629-4s +0-2 +0.04%

Spring Wheat Mar 19 640-0s +0-4 +0.08%

Spring Wheat May 19 646-6s +0-4 +0.08%

 

Kansas City

Hard Red Wheat Jul 18 542-4s +1-6 +0.32%

Hard Red Wheat Sep 18 560-6s +1-4 +0.27%

Hard Red Wheat Dec 18 584-4s +1-2 +0.21%

Hard Red Wheat Mar 19 600-0s +0-6 +0.13%

Hard Red Wheat May 19 607-2s +1-4 +0.25%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 18 105.050s -1.075 -1.01%

Live Cattle Aug 18 103.950s -0.500 -0.48%

Live Cattle Oct 18 107.050s -0.700 -0.65%

 

Feeder Cattle Aug 18 147.400s -1.150 -0.77%

Feeder Cattle Sep 18 147.300s -0.775 -0.52%

Feeder Cattle Oct 18 147.000s -0.625 -0.42%

 

Lean Hogs Jun 18 76.625s -0.700 -0.91%

Lean Hogs Jul 18 78.050s -2.075 -2.59%

Lean Hogs Aug 18 77.025s -1.675 -2.13%

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

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