Soy strength pushes canola futures up

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished steady to higher on Monday, as support from Chicago soyoil edged out a stronger Canadian dollar.

The Canadian dollar was slightly higher mid-afternoon Monday at 75.69 U.S. cents, after closing Friday at 75.58.

Meanwhile soyoil at the Chicago Board of Trade gained approximately a fifth of a cent.

A Winnipeg-based trader stated the market is expected to remain range bound for the time being. He also noted that the Commitment of Traders indicated speculators have a sizeable short covering at this point.

Hot on the heels of Canadian National Railway having announced the layoffs of 1,600 workers across North America on Friday, the company could see 3,200 workers in Canada go on strike. After six months of negotiations without reaching a new deal, the members of the Teamsters Canada Rail Conference gave their notice over the weekend of their intention to hit the picket lines as early as Tuesday.

There were 14,904 contracts traded on Monday, which compares with Friday when 12,334 contracts changed hands. Spreading accounted for 12,392 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jan 463.50 up 1.00
Mar 472.20 up 0.80
May 480.40 up 0.60
Jul 487.50 up 0.70

SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Monday, due to the pending United States/China trade deal.

The markets needed clarity in regards to the deal. As Phase One remains unsigned, negotiators have been discussing matters. The U.S. wants China to stick with a set volume of agricultural purchases. Also, President Donald Trump threatened not to roll back tariffs as previously agreed to. China said it’s concerned that such a provision could hurt its trading relations with other countries. The lack of a trade deal will reportedly plunge the global economy into a recession.

The U.S. Department of Agriculture (USDA) reported soybean export inspections were 1.532 million tonnes for the week ended Nov. 14. That’s up from the 1.110 million tonnes this time last year. So far in the current marketing year, soybean export inspections were at 12.436 million tonnes, almost 12.15 per cent ahead of the pace last year.

CORN futures were lower on Monday, due to technical selling and demand worries.

The USDA said export inspections were a little short of 637,400 tonnes. That’s well below the 845,960 tonnes at this time last year. To date, inspections have reached 4.980 million tonnes, almost 58.5 per cent below last year’s pace.

Ukraine’s Agriculture Ministry reported that it has exported 5.8 million tonnes of corn so far in 2019/20.

WHEAT futures were mixed on Monday, while moderate gains for Chicago, small gains for Kansas City and slight losses for Minneapolis.

Export inspections of wheat tallied a little more than 449,300 tonnes for the week, which was about 90,000 tonnes under the amount for the same period last year. Overall, inspections hit 11.920 million tonnes, which was 21.4 more than this time last year. However, U.S. wheat is still confronted with strong global competition and has lost out on several contracts.

Ukraine said its wheat exports reached 12.6 million tonnes in 2019/20, for an increase of about 8.4 million last year.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 67 cents at US$57.05 per barrel.

In the afternoon, the Canadian dollar was trading around US75.68 cents, up from 75.58 cents the previous trading day. The U.S. dollar was C$1.3214.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 20 463.50s +1.00 +0.22%

Canola Mar 20 472.20s +0.80 +0.17%

Canola May 20 480.40s +0.60 +0.13%

Canola Jul 20 487.50s +0.70 +0.14%

Canola Nov 20 488.10s +0.10 +0.02%

 

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 Jan 20 910-2s -8-0 -0.87%

Soybean Mar 20 923-0s -7-6 -0.83%

Soybean May 20 935-0s -7-2 -0.77%

Soybean Jul 20 945-6s -6-6 -0.71%

Soybean Aug 20 949-0s -6-6 -0.71%

 

Soybean Meal Dec 19 301.2s -5.9 -1.92%

Soybean Meal Jan 20 303.8s -5.4 -1.75%

Soybean Meal Mar 20 307.0s -5.1 -1.63%

 

Soybean Oil Dec 19 30.64s +0.21 +0.69%

Soybean Oil Jan 20 30.82s +0.22 +0.72%

Soybean Oil Mar 20 31.09s +0.22 +0.71%

 

Corn Dec 19 367-6s -3-4 -0.94%

Corn Mar 20 377-2s -3-4 -0.92%

Corn May 20 383-0s -3-4 -0.91%

Corn Jul 20 388-6s -3-6 -0.96%

Corn Sep 20 388-4s -2-4 -0.64%

 

Oats Dec 19 302-2s -6-6 -2.18%

Oats Mar 20 301-4s -3-2 -1.07%

Oats May 20 299-4s -2-4 -0.83%

Oats Jul 20 290-4s -1-4 -0.51%

Oats Sep 20 277-0s -0-6 -0.27%

 

Wheat Dec 19 507-2s +4-4 +0.90%

Wheat Mar 20 510-6s +4-6 +0.94%

Wheat May 20 514-4s +3-6 +0.73%

Wheat Jul 20 517-6s +3-2 +0.63%

Wheat Sep 20 525-4s +3-4 +0.67%

 

Minneapolis

Spring Wheat Dec 19 503-2s -0-4 -0.10%

Spring Wheat Mar 20 518-2s -1-0 -0.19%

Spring Wheat May 20 529-2s -0-6 -0.14%

Spring Wheat Jul 20 539-4s -1-0 -0.19%

Spring Wheat Sep 20 550-4s -1-0 -0.18%

 

Kansas City

Hard Red Wheat Dec 19 418-4s +1-4 +0.36%

Hard Red Wheat Mar 20 426-2s +0-4 +0.12%

Hard Red Wheat May 20 433-0s unch unch

Hard Red Wheat Jul 20 440-6s +0-2 +0.06%

Hard Red Wheat Sep 20 450-4s +0-4 +0.11%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 19 118.700s -0.400 -0.34%

Live Cattle Feb 20 125.100s +0.125 +0.10%

Live Cattle Apr 20 126.400s +0.325 +0.26%

 

Feeder Cattle Nov 19 146.375s +0.125 +0.09%

Feeder Cattle Jan 20 144.475s +0.200 +0.14%

Feeder Cattle Mar 20 144.725s +0.500 +0.35%

 

Lean Hogs Dec 19 62.750s -0.450 -0.71%

Lean Hogs Feb 20 70.225s -1.775 -2.47%

Lean Hogs Apr 20 76.350s -2.625 -3.32%

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