Snow boosts canola futures

Winnipeg, (MarketsFarm) – The ICE Futures canola market was stronger on Monday, as the market reacted to the early start to winter that hit parts of the Prairies over the weekend.

The snow was heaviest in Alberta, but cold and wet conditions in all three Prairie provinces raised concerns over harvest delays and quality downgrades to any crops still in the fields.

Gains in Chicago Board of Trade soybeans were also supportive for canola, as quarterly United States soybean stocks came in tighter than expected.

However, canola remained rangebound overall, with the November contract running into resistance to the upside. Large old crop supplies and Canada’s ongoing diplomatic dispute with China also tempered the advances.

About 37,686 canola contracts traded on Monday, which compares with Friday when 20,613 contracts changed hands. Spreading accounted for 24,656 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were up sharply on Monday, as the market reacted to tighter-than-expected quarterly stocks data from the United States Department of Agriculture.

The USDA’s National Agriculture Statistics Service (NASS) pegged soybean stocks in the country as of Sept. 1 at 913 million bushels, which was well below average trade guesses and the mid-September projection of just over a billion bushels.

A downward revision to last year’s average soybean yields was also supportive for prices.

Weekly U.S. soybean exports were solid at 982,000 tonnes.

CORN was also underpinned by a bullish stocks report, hitting its best levels since mid-August.

U.S. quarterly corn stocks of 2.114 billion bushels were well below trade guesses and the year-ago level.

A private export sale of 120,000 tonnes of U.S. corn to Mexico was also supportive.

Weekly U.S. corn exports of about 400,000 tonnes were up from the previous week, but total movement to date was running about 65 per cent behind last year’s pace.

WHEAT futures were stronger on Monday, with the biggest gains in the winter wheats.

The USDA’s annual small grains summary pegged this year’s U.S. wheat crop at 1.962 billion bushels, which was slightly below average trade guesses. However, of that total spring wheat was a bit higher than pre-report estimates at 600 million bushels.

A resurvey of spring wheat production will be conducted due to the lateness of this year’s harvest, with some of the U.S. spring wheat crop also affected by the winter weather hitting Canada.

Quarterly U.S. wheat stocks of 2.385 billion bushels were at the higher end of trade estimates.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.84 at US$54.07 per barrel.

In the afternoon, the Canadian dollar was trading around US75.51 cents, up from 75.48 cents the previous trading day. The U.S. dollar was C$1.3243.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 19 451.30s +5.50 +1.23%

Canola Jan 20 460.20s +5.50 +1.21%

Canola Mar 20 468.40s +5.50 +1.19%

Canola May 20 475.20s +5.20 +1.11%

Canola Jul 20 480.90s +5.20 +1.09%

 

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 Nov 19 906-0s +23-0 +2.60%

Soybean Jan 20 919-4s +22-0 +2.45%

Soybean Mar 20 930-0s +20-0 +2.20%

Soybean May 20 939-0s +18-4 +2.01%

Soybean Jul 20 947-0s +17-4 +1.88%

 

Soybean Meal Oct 19 295.9s +6.0 +2.07%

Soybean Meal Dec 19 301.0s +5.9 +2.00%

Soybean Meal Jan 20 302.8s +5.7 +1.92%

 

Soybean Oil Oct 19 28.99s +0.37 +1.29%

Soybean Oil Dec 19 29.08s +0.24 +0.83%

Soybean Oil Jan 20 29.31s +0.22 +0.76%

 

Corn Dec 19 388-0s +16-4 +4.44%

Corn Mar 20 399-4s +15-6 +4.10%

Corn May 20 405-2s +14-2 +3.64%

Corn Jul 20 408-4s +12-0 +3.03%

Corn Sep 20 404-4s +6-2 +1.57%

 

Oats Dec 19 275-6s +5-6 +2.13%

Oats Mar 20 279-4s +5-4 +2.01%

Oats May 20 280-2s +5-2 +1.91%

Oats Jul 20 280-4s +5-4 +2.00%

Oats Sep 20 281-4s +4-4 +1.62%

 

Wheat Dec 19 495-6s +8-4 +1.74%

Wheat Mar 20 502-4s +8-6 +1.77%

Wheat May 20 507-2s +8-6 +1.76%

Wheat Jul 20 510-6s +8-4 +1.69%

Wheat Sep 20 518-0s +8-0 +1.57%

 

Minneapolis

Spring Wheat Dec 19 544-4s -2-4 -0.46%

Spring Wheat Mar 20 558-0s -2-4 -0.45%

Spring Wheat May 20 568-0s -1-6 -0.31%

Spring Wheat Jul 20 575-6s -2-0 -0.35%

Spring Wheat Sep 20 583-2s -2-2 -0.38%

 

Kansas City

Hard Red Wheat Dec 19 415-0s +7-4 +1.84%

Hard Red Wheat Mar 20 428-2s +7-4 +1.78%

Hard Red Wheat May 20 437-4s +7-2 +1.69%

Hard Red Wheat Jul 20 446-4s +7-2 +1.65%

Hard Red Wheat Sep 20 457-4s +6-6 +1.50%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Oct 19 104.575s -0.450 -0.43%

Live Cattle Dec 19 110.300s -0.275 -0.25%

Live Cattle Feb 20 116.625s +0.425 +0.37%

 

Feeder Cattle Oct 19 142.400s -1.925 -1.33%

Feeder Cattle Nov 19 141.925s -1.050 -0.73%

Feeder Cattle Jan 20 138.325s -0.375 -0.27%

 

Lean Hogs Oct 19 65.450s +0.175 +0.27%

Lean Hogs Dec 19 72.600s +2.750 +3.94%

Lean Hogs Feb 20 78.000s +2.200 +2.90%

 

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