Short-covering boosts canola prior to weekend

Winnipeg, Jan. 11 (CNS Canada) – ICE Futures canola contracts were stronger on Friday, seeing a modest short-covering correction ahead of the weekend.

Gains in Chicago Board of Trade soybeans and soyoil contributed to the firmer tone in canola, while a slightly weaker tone in the Canadian dollar was also supportive.

However, a lack of significant end-user demand tempered the upside.

The lack of information from the United States Department of Agriculture (USDA) also kept some caution in the agricultural markets. Monthly USDA supply/demand numbers were supposed to be released on Friday, but remain delayed indefinitely due to the country’s partial government shutdown.

About 11,229 canola contracts traded on Friday, which compares with Thursday when 10,964 contracts changed hands. Spreading accounted for 5,458 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, as speculators bought back some of their recently sold contracts and adjusted positions ahead of the weekend.

Downward production estimates out of South America from a number of forecasters contributed to the gains.

However, concerns over Chinese demand tempered the upside as trade relations between the United States and China remain tenuous despite reportedly good talks earlier this week.

Ideas that African swine fever in China will cut sharply into soymeal demand from China’s large hog sector also put some pressure on values.

CORN futures were firmer, taking some direction from soybeans and wheat.

Corn plantings in Argentina are running slightly behind the year ago pace, at 86.1 per cent complete, according to a report from the Buenos Aires Grain Exchange (BAGE). However, crop conditions were generally looking favourable, with just over half of the corn that’s already emerged rating good-to-excellent.

China’s agriculture ministry estimated this year’s corn crop there at 257.33 million tonnes, which would be down by about 2 million tonnes from 2017/18.

WHEAT futures were stronger on Friday, seeing a correction after yesterday’s declines. U.S. wheat is said to be looking more favourably priced compared to Black Sea origin grain on the export markets. Recent weakness in the U.S. dollar index, which hit its weakest levels in three months today, contributed to the gains in wheat.

Argentina’s wheat crop was just over 95 per cent harvested, which was only slightly behind the year ago pace, according to BAGE.

Light crude oil nearby futures in New York was down $1 at US$51.59 per barrel.

In the afternoon, the Canadian dollar was trading around US75.42 cents, down from 75.56 cents the previous trading day. The U.S. dollar was C$1.3259.

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 19 482.20s +2.80 +0.58%
Canola Mar 19 483.30s +2.80 +0.58%
Canola May 19 492.10s +3.10 +0.63%
Canola Jul 19 499.80s +3.20 +0.64%
Canola Nov 19 498.20s +3.80 +0.77%

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 19 899-2s +3-6 +0.42%
Soybeans Mar 19 910-2s +3-4 +0.39%
Soybeans May 19 923-6s +3-4 +0.38%
Soybeans Jul 19 936-2s +4-0 +0.43%
Soybeans Aug 19 941-2s +4-0 +0.43%

Soybean Meal Jan 19 310.4s -2.2 -0.70%
Soybean Meal Mar 19 314.6s -2.2 -0.69%
Soybean Meal May 19 318.7s -1.9 -0.59%

Soybean Oil Jan 19 28.17s +0.23 +0.82%
Soybean Oil Mar 19 28.41s +0.22 +0.78%
Soybean Oil May 19 28.70s +0.22 +0.77%

Corn Mar 19 378-2s +2-0 +0.53%
Corn May 19 386-6s +2-2 +0.59%
Corn Jul 19 394-2s +2-0 +0.51%
Corn Sep 19 397-2s +2-2 +0.57%
Corn Dec 19 401-4s +2-4 +0.63%

Oats Mar 19 294-6s +6-0 +2.08%
Oats May 19 287-0s +3-0 +1.06%
Oats Jul 19 286-2s +1-6 +0.62%
Oats Sep 19 278-0s +1-4 +0.54%
Oats Dec 19 273-4s +1-4 +0.55%

Wheat Mar 19 519-4s +5-6 +1.12%
Wheat May 19 525-0s +5-2 +1.01%
Wheat Jul 19 529-4s +5-2 +1.00%
Wheat Sep 19 537-6s +5-0 +0.94%
Wheat Dec 19 551-4s +5-0 +0.91%

Minneapolis
Spring Wheat Mar 19 570-0s +6-0 +1.06%
Spring Wheat May 19 574-2s +4-6 +0.83%
Spring Wheat Jul 19 580-6s +4-4 +0.78%
Spring Wheat Sep 19 588-0s +4-2 +0.73%
Spring Wheat Dec 19 601-0s +4-0 +0.67%

Kansas City
Hard Red Wheat Mar 19 504-4s +5-6 +1.15%
Hard Red Wheat May 19 516-0s +6-0 +1.18%
Hard Red Wheat Jul 19 525-6s +6-2 +1.20%
Hard Red Wheat Sep 19 537-6s +6-2 +1.18%
Hard Red Wheat Dec 19 554-2s +5-4 +1.00%

Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Feb 19 124.975s +0.100 +0.08%
Live Cattle Apr 19 126.375s +0.450 +0.36%
Live Cattle Jun 19 117.200s -0.175 -0.15%

Feeder Cattle Jan 19 146.125s -0.625 -0.43%
Feeder Cattle Mar 19 144.900s -0.175 -0.12%
Feeder Cattle Apr 19 145.750s +0.075 +0.05%

Lean Hogs Feb 19 62.650s -1.425 -2.22%
Lean Hogs Apr 19 67.350s -0.500 -0.74%
Lean Hogs May 19 72.875s -1.025 -1.39%

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