Soy soars, boosts canola, after Trump tweet

The ICE Futures canola platform were stronger at market close, finding spillover support from the soybean market.

The canola market was lower in early morning trade as a stronger Canadian dollar weighed on it. However, United States President Donald Trump tweeted midmorning that he had a “long and very good conversation” with Chinese President Xi Jinping about trade. This sent the soybean market in the U.S. soaring, which then spilled over into the canola market.

However, there wasn’t much new information in the tweet and with the U.S. midterm elections next week we could see more tweets like this from Trump as he tries to drum up votes for the Republicans, according to a Winnipeg-based trader.

Chicago Board of Trade (CBOT) soyoil and meal contracts were also up at market close.

Weekly United States Department of Agriculture (USDA) export sales for soybeans released this morning were disappointing. However, the Trump tweet overshadowed this and dominated the market. Soybean exports for last week were at 455,800 tonnes, which was on the lower end of estimates.

The USDA will release its monthly crush report after market close today. It is expected that soybean processors will likely have crushed around 171 million bushels in September. This is based on data previously released by the National Oilseed Processors Association.

CBOT corn prices finished the day higher, finding some spillover support from the soy market.

Corn exports from the USDA released today were also disappointing. Exports for last week came in at 399,500 tonnes, which was below estimates.

A storm moving through the eastern Corn Belt has brought rain for the short-term forecast, which slowed down harvest progress. However, drier weather is expected in the next two weeks.

Wheat futures in the U.S. finished the day higher.

USDA wheat exports for the week were better than expected. Exports came in at 582,500 tonnes, which was above estimates.

Morocco ended its 135 per cent duty on soft wheat imports today; this was meant to protect domestic wheat prices for their harvest.

Taiwan bought 101,400 tonnes of U.S. milling wheat overnight.

About 27,864 canola contracts traded, which compares with Wednesday when 18,100 contracts changed hands. Spreading accounted for 13,846 of the contracts traded.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.62 at US$63.69 per barrel.

In the afternoon, the Canadian dollar was trading around US76.41 cents, up from 76.09 cents the previous trading day. The U.S. dollar was C$1.3088.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 18 482.50s +7.50 +1.58%

Canola Jan 19 489.60s +3.60 +0.74%

Canola Mar 19 496.90s +4.00 +0.81%

Canola May 19 504.30s +4.90 +0.98%

Canola Jul 19 507.70s +4.50 +0.89%

 

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 18 869-0s +30-0 +3.58%

Soybeans Jan 19 882-0s +30-2 +3.55%

Soybeans Mar 19 894-2s +29-2 +3.38%

Soybeans May 19 907-6s +29-0 +3.30%

Soybeans Jul 19 920-0s +28-6 +3.23%

 

Soybean Meal Dec 18 313.4s +7.0 +2.28%

Soybean Meal Jan 19 315.0s +6.8 +2.21%

Soybean Meal Mar 19 317.3s +7.7 +2.49%

 

Soybean Oil Dec 18 28.32s +0.30 +1.07%

Soybean Oil Jan 19 28.55s +0.31 +1.10%

Soybean Oil Mar 19 28.84s +0.35 +1.23%

 

Corn Dec 18 366-6s +3-4 +0.96%

Corn Mar 19 378-6s +3-0 +0.80%

Corn May 19 386-6s +3-0 +0.78%

Corn Jul 19 392-6s +3-0 +0.77%

Corn Sep 19 394-0s +2-4 +0.64%

 

Oats Dec 18 281-2s +4-6 +1.72%

Oats Mar 19 277-6s +5-0 +1.83%

Oats May 19 278-4s +4-4 +1.64%

Oats Jul 19 279-4s +4-0 +1.45%

Oats Sep 19 276-6s +2-0 +0.73%

 

Wheat Dec 18 508-0s +7-4 +1.50%

Wheat Mar 19 522-6s +6-6 +1.31%

Wheat May 19 534-2s +6-6 +1.28%

Wheat Jul 19 540-4s +6-4 +1.22%

Wheat Sep 19 553-2s +7-4 +1.37%

 

Minneapolis

Spring Wheat Dec 18 576-6s +7-4 +1.32%

Spring Wheat Mar 19 585-6s +6-2 +1.08%

Spring Wheat May 19 593-6s +5-6 +0.98%

Spring Wheat Jul 19 601-0s +4-4 +0.75%

Spring Wheat Sep 19 608-0s +4-0 +0.66%

 

Kansas City

Hard Red Wheat Dec 18 501-2s +8-0 +1.62%

Hard Red Wheat Mar 19 525-4s +7-4 +1.45%

Hard Red Wheat May 19 539-4s +7-6 +1.46%

Hard Red Wheat Jul 19 547-0s +7-4 +1.39%

Hard Red Wheat Sep 19 562-6s +7-6 +1.40%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 18 117.125s +0.175 +0.15%

Live Cattle Feb 19 122.350s +0.150 +0.12%

Live Cattle Apr 19 123.825s +0.475 +0.39%

 

Feeder Cattle Nov 18 153.300s -0.175 -0.11%

Feeder Cattle Jan 19 150.600s +0.475 +0.32%

Feeder Cattle Mar 19 148.825s +0.600 +0.40%

 

Lean Hogs Dec 18 58.200s -0.250 -0.43%

Lean Hogs Feb 19 65.050s -0.275 -0.42%

Lean Hogs Apr 19 70.825s +0.500 +0.71%

 

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