Slow trade weakens canola futures

Winnipeg – ICE Futures canola contracts were weaker on Tuesday, although activity was thin and choppy with spreading the feature.

Losses in Chicago Board of Trade soy complex and a steady tone in the Canadian dollar accounted for some of the selling pressure, as crush margins deteriorated on the day.

Ongoing trade tensions with China also continued to weigh on canola values, although those concerns were thought to be largely priced into the market for the time being.

Canola lagged soybeans to the downside, with supportive chart signals helping temper the declines. Expectations for reduced seeded acres this spring also underpinned the market.

Statistics Canada releases its acreage estimates on Wednesday, April 24.

About 37,851 canola contracts traded on Tuesday, which compares with Monday when 29,048 contracts changed hands. Spreading accounted for 31,564 of the contracts trade.

SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, as large losses in wheat spilled into the other grains and oilseeds.

Large old crop supplies in the United States and South American harvest pressure contributed to the losses in soybeans, with little fresh supportive news on the other side to temper the declines.

While trade talks between the U.S. and China are reportedly progressing well, the lack of any tangible results had traders showing some caution.

CORN futures were weaker, also taking direction from a selloff in wheat.

The U.S. corn crop was three per cent seeded in the latest weekly report, which was slightly behind the average for this time of year of five per cent.

Excessive moisture and flooding in some parts of the Midwest has delayed seeding progress, and could see some intended corn acres go into soybeans instead. Forecasts call for more rains in many key growing areas over the next week, which should cause more delays.

WHEAT futures were lower, with some technical stops hit on the way down.

The condition rating of the U.S. winter wheat crop was left unchanged in the latest weekly report from the U.S. Department of Agriculture, at 60 per cent good-to-excellent. That marked the best reading for the middle of April in seven years.

The rain causing delays for corn seeding will be beneficial for winter wheat already in the ground, which added to the selling pressure in the Chicago and Kansas City contracts.

Russian forecasters SovEcon pegged the country’s 2019 wheat crop at 83.4 million tonnes, which was up by 3.4 million from an earlier estimate.

The U.S. spring wheat crop was only two per cent seeded in the latest weekly report, which was well off the 13 per cent average for this time of year. Minneapolis spring wheat lagged the winter wheats to the downside as a result.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 65 cents at US$64.05 per barrel.

In the afternoon, the Canadian dollar was trading around US74.84 cents, down from 74.88 cents the previous trading day. The U.S. dollar was C$1.3361.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 19 454.50s -1.20 -0.26%

Canola Jul 19 462.20s -1.50 -0.32%

Canola Nov 19 473.90s -1.10 -0.23%

Canola Jan 20 480.60s -0.80 -0.17%

Canola Mar 20 486.20s -0.20 -0.04%

 

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 19 888-0s -10-6 -1.20%

Soybean Jul 19 901-6s -10-6 -1.18%

Soybean Aug 19 907-4s -10-4 -1.14%

Soybean Sep 19 912-2s -10-0 -1.08%

Soybean Nov 19 921-0s -10-0 -1.07%

 

Soybean Meal May 19 306.5s -4.5 -1.45%

Soybean Meal Jul 19 310.1s -4.6 -1.46%

Soybean Meal Aug 19 311.4s -4.4 -1.39%

 

Soybean Oil May 19 28.72s -0.09 -0.31%

Soybean Oil Jul 19 29.02s -0.09 -0.31%

Soybean Oil Aug 19 29.17s -0.10 -0.34%

 

Corn May 19 359-0s -3-6 -1.03%

Corn Jul 19 367-6s -3-6 -1.01%

Corn Sep 19 376-0s -3-4 -0.92%

Corn Dec 19 387-4s -3-2 -0.83%

Corn Mar 20 401-4s -3-0 -0.74%

 

Oats May 19 294-6s +5-4 +1.90%

Oats Jul 19 278-0s +0-2 +0.09%

Oats Sep 19 268-2s -0-2 -0.09%

Oats Dec 19 259-4s +0-4 +0.19%

Oats Mar 20 252-0s -1-2 -0.49%

 

Wheat May 19 445-0s -14-4 -3.16%

Wheat Jul 19 448-4s -14-6 -3.18%

Wheat Sep 19 456-4s -14-6 -3.13%

Wheat Dec 19 474-2s -14-0 -2.87%

Wheat Mar 20 491-4s -12-6 -2.53%

 

Minneapolis

Spring Wheat May 19 527-2s -4-4 -0.85%

Spring Wheat Jul 19 530-4s -4-4 -0.84%

Spring Wheat Sep 19 537-0s -5-2 -0.97%

Spring Wheat Dec 19 551-6s -5-2 -0.94%

Spring Wheat Mar 20 566-6s -5-0 -0.87%

 

Kansas City

Hard Red Wheat May 19 417-0s -10-2 -2.40%

Hard Red Wheat Jul 19 422-4s -11-0 -2.54%

Hard Red Wheat Sep 19 432-2s -11-6 -2.65%

Hard Red Wheat Dec 19 455-4s -11-6 -2.51%

Hard Red Wheat Mar 20 477-0s -10-6 -2.20%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 19 127.150s +0.850 +0.67%

Live Cattle Jun 19 122.450s +0.975 +0.80%

Live Cattle Aug 19 119.325s +1.000 +0.85%

 

Feeder Cattle Apr 19 145.675s unch unch

Feeder Cattle May 19 151.200s +0.175 +0.12%

Feeder Cattle Aug 19 160.200s +1.050 +0.66%

 

Lean Hogs May 19 88.975s -1.100 -1.22%

Lean Hogs Jun 19 97.125s -1.175 -1.20%

Lean Hogs Jul 19 101.175s -0.375 -0.37%

 

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