Soy drop affects canola; wheat rises

ICE Futures canola contracts were weaker on Tuesday, as a downturn in the Chicago Board of Trade soy complex spilled over to weigh on prices.

Chart-based selling contributed to the declines in canola, with the November contract moving back below the psychological C$500 per tonne mark.

However, cool and wet harvest-delaying weather across the Prairies remained supportive. Yield and quality losses are expected, which should lead to adjustments in the supply/demand balance sheets for canola going forward.

About 17,680 canola contracts traded, which compares with Friday when 16,489 contracts changed hands. The canola market was closed Monday for Canadian Thanksgiving. Spreading accounted for 12,308 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, with disappointing export demand behind some of the selling pressure.

Weekly U.S. soybean export inspections of about 570,000 tonnes were down from both the previous week and the year-ago level, accounting for some of the weakness in soybeans as the ongoing trade dispute with China continued to cut into some demand.

Seasonal harvest pressure also weighed on values, although forecasts calling for heavy rains across parts of the Midwest should lead to some delays.

The United States Department of Agriculture releases updated supply/demand data on Thursday, and positioning ahead of the report was a feature.

CORN futures were weaker, as strength in the U.S. dollar index encouraged some speculative selling.

However, expectations that U.S. President Donald Trump will be making an announcement supportive to the ethanol sector in Iowa later in the day provided some support.

Solid weekly corn export inspections, of 1.3 million tonnes, were also supportive.

WHEAT futures were higher, with Minneapolis spring wheat leading to the upside on the back of solid export demand.

The USDA reported an export sale of 120,000 tonnes of U.S. hard red spring wheat to Bangladesh this morning. Weekly export inspections also showed improvement.

However, the strong U.S. dollar could cut into that demand going forward.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 67 cents at US$74.96 per barrel.

In the afternoon, the Canadian dollar was trading around US77.13 cents, down from 77.30 cents the previous trading day. The U.S. dollar was C$1.2965.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 18 499.60s -1.70 -0.34%

Canola Jan 19 505.00s -1.30 -0.26%

Canola Mar 19 510.80s -0.50 -0.10%

Canola May 19 514.00s -0.10 -0.02%

Canola Jul 19 515.90s -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

Soybeans Nov 18 863-0s -6-6 -0.78%

Soybeans Jan 19 876-6s -6-2 -0.71%

Soybeans Mar 19 889-2s -5-4 -0.61%

Soybeans May 19 902-4s -5-2 -0.58%

Soybeans Jul 19 914-0s -4-6 -0.52%

 

Soybean Meal Oct 18 313.5s -0.7 -0.22%

Soybean Meal Dec 18 317.8s -0.7 -0.22%

Soybean Meal Jan 19 318.2s -0.5 -0.16%

 

Soybean Oil Oct 18 28.97s -0.36 -1.23%

Soybean Oil Dec 18 29.26s -0.38 -1.28%

Soybean Oil Jan 19 29.49s -0.36 -1.21%

 

Corn Dec 18 364-4s -2-0 -0.55%

Corn Mar 19 376-4s -2-0 -0.53%

Corn May 19 383-4s -1-6 -0.45%

Corn Jul 19 389-0s -1-6 -0.45%

Corn Sep 19 392-2s -1-6 -0.44%

 

Oats Dec 18 286-0s +3-6 +1.33%

Oats Mar 19 278-2s +3-2 +1.18%

Oats May 19 274-4s +3-4 +1.29%

Oats Jul 19 274-0s +2-6 +1.01%

Oats Sep 19 276-0s +2-4 +0.91%

 

Wheat Dec 18 515-0s +1-0 +0.19%

Wheat Mar 19 535-2s +1-2 +0.23%

Wheat May 19 546-2s +2-0 +0.37%

Wheat Jul 19 552-0s +2-4 +0.45%

Wheat Sep 19 564-4s +2-0 +0.36%

 

Minneapolis

Spring Wheat Dec 18 593-4s +4-4 +0.76%

Spring Wheat Mar 19 605-0s +4-0 +0.67%

Spring Wheat May 19 612-2s +3-4 +0.57%

Spring Wheat Jul 19 618-2s +3-4 +0.57%

Spring Wheat Sep 19 622-0s +3-2 +0.53%

 

Kansas City

Hard Red Wheat Dec 18 519-4s +2-0 +0.39%

Hard Red Wheat Mar 19 543-2s +2-4 +0.46%

Hard Red Wheat May 19 555-0s +3-4 +0.63%

Hard Red Wheat Jul 19 561-4s +4-4 +0.81%

Hard Red Wheat Sep 19 576-6s +4-6 +0.83%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Oct 18 113.350s -0.825 -0.72%

Live Cattle Dec 18 117.150s -1.100 -0.93%

Live Cattle Feb 19 122.100s -0.775 -0.63%

 

Feeder Cattle Oct 18 156.950s -0.725 -0.46%

Feeder Cattle Nov 18 157.500s -0.925 -0.58%

Feeder Cattle Jan 19 153.750s -1.075 -0.69%

 

Lean Hogs Oct 18 68.750s +0.300 +0.44%

Lean Hogs Dec 18 56.575s -0.975 -1.69%

Lean Hogs Feb 19 65.625s -1.575 -2.34%

 

About the author

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

Comments

Markets at a glance

Copyright © 2018. All market data is provided by Barchart Market Data Solutions. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

explore

Stories from our other publications