WINNIPEG, (MarketsFarm) – ICE Futures canola contracts were stronger at the end of trading on Thursday, as a large amount of short trading provided a bounce in bids.
Also support came from traders who are preparing for tomorrow’s United States Department of Agriculture quarterly reports on Prospective Planting and Grain Stocks.
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The Canadian dollar was down at 74.39 U.S. cents by mid-afternoon on Thursday, which provided some support.
And there is support coming from spring road bans on the Canadian Prairies, which have limited farmer deliveries, as well as from the belief that farmers may plant less canola this spring.
With moderate to major flooding in about half of the continental United States, farmers there may change their planting intentions from corn to soybeans. Such would weigh on canola values.
Canola exports fell in January to a 16-month low. Approximately 233.2 million tonnes of canola were exported from Canada, with about a third going to China. Those exports to China were down 28.5 per cent from November, and since January, there have been few, if any, new sales to China.
About 16,290 contracts were traded on Thursday, which compares with Wednesday when approximately 13,555 contracts changed hands.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday.
United States/China trade talks got off with a positive note on Thursday. China offered to make a major concession on technology transfers, and the U.S. offered to lift some of the tariffs on Chinese imports. However there are still several other trade issues needing to be resolved. Trade talks will continue Friday in China, and then resume next week in the U.S.
There will be moderate to major flooding in 25 U.S. states this spring. A slow spring thaw has helped some areas, but Iowa and Nebraska are among many states that have already incurred billions of dollars in damages. As flooding continues, it will become more likely that U.S. farmers could switch from corn to planting soybeans.
The U.S. Department of Agriculture releases two reports on March 29, its Prospective Planting report and its Grain Stocks report. Traders have been positioning themselves ahead of Friday.
CORN futures were also stronger on Thursday.
U.S. corn exports for the week ended March 21 amounted to 904,500 tonnes, which was in line with trade estimates. There were 85,400 tonnes of new sales.
However, the Brazil real and the Argentina peso fell against the U.S. dollar, which hurt U.S. competitiveness.
Ahead of Friday’s USDA report, corn stocks in the U.S. have been projected at 328.2 million tonnes. That would be well down from the 350.1 million tonnes in 2018.
WHEAT futures were weaker on Thursday due to a lack of fresh supportive news and the U.S. having a good supply. Also, gains by the U.S. dollar weighed on values.
There have been indications of North Dakota farmers planting less spring wheat this year as they look to higher priced crops.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was down 11 cents at US$59.30 per barrel.
In the afternoon, the Canadian dollar was trading around US74.47 cents, down from 74.55 centsthe previous trading day. The U.S. dollar was C$1.3429.
Winnipeg ICE Futures Canada dollars per tonne.
Canola May 19 455.20s +3.80 +0.84%
Canola Jul 19 462.80s +3.60 +0.78%
Canola Nov 19 473.80s +2.60 +0.55%
Canola Jan 20 480.30s +2.30 +0.48%
Canola Mar 20 485.40s +2.10 +0.43%
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
Soybean May 19 889-4s +2-0 +0.23%
Soybean Jul 19 903-0s +2-0 +0.22%
Soybean Aug 19 909-0s +1-4 +0.17%
Soybean Sep 19 914-4s +1-2 +0.14%
Soybean Nov 19 923-6s +0-4 +0.05%
Soybean Meal May 19 306.5s +2.1 +0.69%
Soybean Meal Jul 19 310.2s +1.9 +0.62%
Soybean Meal Aug 19 311.7s +1.7 +0.55%
Soybean Oil May 19 28.63s -0.19 -0.66%
Soybean Oil Jul 19 28.96s -0.18 -0.62%
Soybean Oil Aug 19 29.09s -0.18 -0.61%
Corn May 19 374-0s +0-2 +0.07%
Corn Jul 19 383-6s +0-2 +0.07%
Corn Sep 19 391-0s +0-4 +0.13%
Corn Dec 19 398-2s +0-2 +0.06%
Corn Mar 20 408-4s +0-2 +0.06%
Oats May 19 264-6s -5-0 -1.85%
Oats Jul 19 264-4s -3-6 -1.40%
Oats Sep 19 259-4s -3-4 -1.33%
Oats Dec 19 254-6s -1-6 -0.68%
Oats Mar 20 253-6s -1-4 -0.59%
Wheat May 19 464-4s -5-0 -1.06%
Wheat Jul 19 470-4s -4-4 -0.95%
Wheat Sep 19 478-6s -4-4 -0.93%
Wheat Dec 19 493-2s -4-2 -0.85%
Wheat Mar 20 506-2s -3-4 -0.69%
Minneapolis
Spring Wheat May 19 560-0s -7-6 -1.37%
Spring Wheat Jul 19 561-0s -5-6 -1.01%
Spring Wheat Sep 19 566-2s -5-2 -0.92%
Spring Wheat Dec 19 577-4s -4-6 -0.82%
Spring Wheat Mar 20 589-2s -4-6 -0.80%
Kansas City
Hard Red Wheat May 19 438-6s -5-6 -1.29%
Hard Red Wheat Jul 19 446-6s -5-4 -1.22%
Hard Red Wheat Sep 19 458-4s -5-4 -1.19%
Hard Red Wheat Dec 19 478-6s -5-2 -1.08%
Hard Red Wheat Mar 20 495-6s -5-0 -1.00%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 19 126.525s +0.275 +0.22%
Live Cattle Jun 19 119.625s +0.025 +0.02%
Live Cattle Aug 19 116.500s -0.150 -0.13%
Feeder Cattle Mar 19 141.975s -0.150 -0.11%
Feeder Cattle Apr 19 145.950s +0.050 +0.03%
Feeder Cattle May 19 149.675s +0.150 +0.10%
Lean Hogs Apr 19 78.875s -2.450 -3.01%
Lean Hogs May 19 83.675s -3.000 -3.46%
Lean Hogs Jun 19 91.800s -3.000 -3.16%
