Selloff drives grain futures lower

Winnipeg – ICE Futures canola contracts were lower on Monday, taking back much of Friday’s gains as a selloff in Chicago Board of Trade soybeans weighed on prices.

Speculators were noted sellers, booking profits to start the week as global trade concerns were overhanging the agricultural markets.

However, canola lagged soybeans to the downside. Hot and dry conditions across much of the Prairies were being followed closely, providing some underlying support.

Weakness in the Canadian dollar, as it retreated from early gains, also helped temper the declines.

About 10,102 canola contracts traded, which compares with Friday when 13,093 contracts changed hands. Spreading accounted for 1,040 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were down sharply on Monday, seeing a profit-taking correction after Friday’s rally. Traders are still working on getting a better handle on what Chinese tariffs on soybeans from the United States will mean going forward.

Relatively favourable Midwestern growing conditions also weighed on values, although hot temperatures in the nearby forecasts have the potential to cause some damage.

The U.S. Department of Agriculture reported private export sales of 132,000 tonnes of U.S. soybeans to unknown destinations this morning.

The USDA’s monthly supply/demand report will be released on Thursday, with adjustments to the tables due to the China/U.S. trade war expected.

CORN was weaker, taking some direction from soybeans. Global trade concerns and the generally good Midwestern weather added to the softer tone in corn.

Weekly U.S. corn export inspections came in at nearly one and a half million tonnes. That was down a bit from the previous week, but still strong overall and well above what was reported during the same Fourth of July holiday week last year.

WHEAT futures were down across the board, with seasonal harvest pressure accounting for some of the weakness in the winter wheats as the U.S. harvest moves steadily northwards.

Poor export demand also weighed on values, with U.S. wheat export inspections running well behind last year’s pace.

However, production issues in parts of Russia and Europe provided support. In addition, all of Kansas is now in a state of drought, raising concerns over moisture reserves going forward.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up xx cents at US$xx.xx per barrel.

In the afternoon, the Canadian dollar was trading around USxx.xx cents, down from xx.xx cents the previous trading day. The U.S. dollar was C$1.xxxx. 1/.7795

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 18 518.30s -4.90 -0.94%

Canola Nov 18 506.30s -4.90 -0.96%

Canola Jan 19 511.60s -4.60 -0.89%

Canola Mar 19 515.50s -4.00 -0.77%

Canola May 19 517.80s -4.10 -0.79%

 

Soybeans Jul 18 851-6s -22-2 -2.55%

Soybeans Aug 18 855-6s -21-6 -2.48%

Soybeans Sep 18 861-0s -22-2 -2.52%

Soybeans Nov 18 872-0s -22-4 -2.52%

Soybeans Jan 19 881-6s -22-2 -2.46%

 

Soybean Meal Jul 18 331.8s -8.0 -2.35%

Soybean Meal Aug 18 329.9s -8.2 -2.43%

Soybean Meal Sep 18 330.0s -8.4 -2.48%

 

Soybean Oil Jul 18 28.74s -0.16 -0.55%

Soybean Oil Aug 18 28.86s -0.16 -0.55%

Soybean Oil Sep 18 28.96s -0.15 -0.52%

 

Corn Jul 18 345-6s -6-0 -1.71%

Corn Sep 18 354-0s -6-2 -1.73%

Corn Dec 18 367-0s -6-0 -1.61%

Corn Mar 19 378-0s -5-2 -1.37%

Corn May 19 384-6s -5-2 -1.35%

 

Oats Jul 18 258-6s +4-4 +1.77%

Oats Sep 18 238-4s -2-0 -0.83%

Oats Dec 18 241-0s -1-6 -0.72%

Oats Mar 19 245-4s -1-6 -0.71%

Oats May 19 247-2s -1-6 -0.70%

 

Wheat Jul 18 507-6s -5-0 -0.98%

Wheat Sep 18 508-0s -7-2 -1.41%

Wheat Dec 18 525-0s -5-0 -0.94%

Wheat Mar 19 540-4s -3-2 -0.60%

Wheat May 19 550-4s -2-4 -0.45%

 

Spring Wheat Jul 18 539-2s -6-4 -1.19%

Spring Wheat Sep 18 548-0s -10-2 -1.84%

Spring Wheat Dec 18 564-6s -10-2 -1.78%

Spring Wheat Mar 19 580-2s -9-6 -1.65%

Spring Wheat May 19 590-2s -9-6 -1.63%

 

Hard Red Wheat Jul 18 487-4s -4-6 -0.96%

Hard Red Wheat Sep 18 506-0s -7-0 -1.36%

Hard Red Wheat Dec 18 528-6s -5-4 -1.03%

Hard Red Wheat Mar 19 545-4s -4-2 -0.77%

Hard Red Wheat May 19 554-6s -3-2 -0.58%

 

Live Cattle   Aug 18 106.125s -0.250 -0.24%

Live Cattle   Oct 18 108.625s -1.000 -0.91%

Live Cattle   Dec 18 112.950s -0.750 -0.66%

 

Feeder Cattle   Aug 18 151.450s -0.750 -0.49%

Feeder Cattle   Sep 18 151.775s -0.500 -0.33%

Feeder Cattle   Oct 18 151.725s -0.425 -0.28%

 

Lean Hogs   Jul 18 80.225s -1.150 -1.41%

Lean Hogs   Aug 18 72.775s -2.650 -3.51%

Lean Hogs   Oct 18 56.125s -2.425 -4.14%

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

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