Soybeans bring strength to canola futures

Winnipeg – The ICE Futures canola market was stronger on Friday, as a rally in Chicago Board of Trade soybeans provided support.

Updated acreage estimates from the United States Department of Agriculture came in well below expectations for soybeans, pegging this year’s U.S. crop at only 80 million acres. The resulting strength in soybeans pulled canola up as well.

Ongoing concerns over poor moisture conditions across parts of Western Canada, despite recent rains in some areas, added to the firmer tone.

The canola market will be closed Monday for Canada Day, while U.S. markets will trade their usual hours. Positioning ahead of the Canadian long weekend was another feature in the market.

About 16,133 canola contracts traded on Friday, which compares with Thursday when 15,296 contracts changed hands. Spreading accounted for 5,544 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were up on Friday, as updated acreage estimates from the United States Department of Agriculture provided support.

The USDA pegged 2019 U.S. soybean area at 80.0 million acres, which was a drop of 4.6 million from the March intentions report and well below average trade estimates.

Quarterly U.S. soybean stocks came in at 1.79 billion bushels, which was at below average trade guesses, but still about 500 million above the level at the same time a year ago.

The USDA reported private export sales of 544,000 tonnes of soybeans to China this morning.

Meanwhile, CORN was down sharply, posting near limit-down losses.

U.S. corn acres were pegged at 91.7 million acres by the USDA. That was down slightly from the March intentions, but well off the average trade guesses which were well below 90 million.

The USDA said that it would resurvey 14 Midwestern states to get a better picture of actual acres. The timing of the survey in early June, when farmers were still struggling with wet fields, meant that the results likely included intentions rather than what was actually seeded. The new numbers will be published on August 12.

WHEAT moved lower in sympathy with corn. All wheat acres in the U.S. were pegged at 45.6 million, which was in line with expectations.

Of the total, spring wheat came in at 12.4 million acres, down by 400,000 from March.

U.S. wheat stocks as of June 1 were also in line with expectations, at just over 1 billion bushels.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up eight cents at US$59.29 per barrel.

In the afternoon, the Canadian dollar was trading around US76.19 cents, unchanged from the previous trading day. The U.S. dollar was C$1.3125, also unchanged.

Winnipeg ICE Futures Canada dollars per tonne

 

Name / Contract Last Change % Change

Canola Jul 19 452.00s +10.90 +2.47%

Canola Nov 19 455.90s +3.90 +0.86%

Canola Jan 20 463.10s +3.70 +0.81%

Canola Mar 20 469.80s +3.70 +0.79%

Canola May 20 475.10s +3.50 +0.74%

 

Chicago

Soybean Jul 19 899-6s +12-0 +1.35%

Soybean Aug 19 904-4s +10-6 +1.20%

Soybean Sep 19 911-0s +11-0 +1.22%

Soybean Nov 19 923-0s +10-6 +1.18%

Soybean Jan 20 934-4s +10-6 +1.16%

 

Soybean Meal Jul 19 313.1s +0.9 +0.29%

Soybean Meal Aug 19 315.3s +2.1 +0.67%

Soybean Meal Sep 19 317.3s +2.5 +0.79%

 

Soybean Oil Jul 19 28.24s +0.43 +1.55%

Soybean Oil Aug 19 28.37s +0.44 +1.58%

Soybean Oil Sep 19 28.49s +0.45 +1.60%

 

Corn Jul 19 420-2s -19-6 -4.49%

Corn Sep 19 424-6s -21-0 -4.71%

Corn Dec 19 431-4s -19-4 -4.32%

Corn Mar 20 439-4s -17-2 -3.78%

Corn May 20 443-0s -15-0 -3.28%

 

Oats Jul 19 273-0s -5-0 -1.80%

Oats Sep 19 277-2s -1-2 -0.45%

Oats Dec 19 276-4s -3-0 -1.07%

Oats Mar 20 280-2s -3-2 -1.15%

Oats May 20 279-0s -3-2 -1.15%

 

Wheat Jul 19 528-0s -19-4 -3.56%

Wheat Sep 19 527-2s -19-4 -3.57%

Wheat Dec 19 538-4s -18-2 -3.28%

Wheat Mar 20 548-6s -17-0 -3.00%

Wheat May 20 551-4s -15-4 -2.73%

 

Minneapolis

Spring Wheat Jul 19 554-2s +2-6 +0.50%

Spring Wheat Sep 19 554-2s -7-2 -1.29%

Spring Wheat Dec 19 567-4s -8-0 -1.39%

Spring Wheat Mar 20 581-0s -8-2 -1.40%

Spring Wheat May 20 588-6s -7-0 -1.17%

 

Kansas City

Hard Red Wheat Jul 19 451-4s -16-4 -3.53%

Hard Red Wheat Sep 19 461-4s -20-0 -4.15%

Hard Red Wheat Dec 19 484-4s -18-6 -3.73%

Hard Red Wheat Mar 20 505-0s -18-0 -3.44%

Hard Red Wheat May 20 516-4s -17-4 -3.28%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 19 110.500s -0.075 -0.07%

Live Cattle Aug 19 104.350s -1.000 -0.95%

Live Cattle Oct 19 105.425s -0.900 -0.85%

 

Feeder Cattle Aug 19 136.675s +0.875 +0.64%

Feeder Cattle Sep 19 136.650s +0.550 +0.40%

Feeder Cattle Oct 19 136.550s +0.300 +0.22%

 

Lean Hogs Jul 19 72.100s -1.725 -2.34%

Lean Hogs Aug 19 76.000s -1.175 -1.52%

Lean Hogs Oct 19 70.850s -0.750 -1.05%

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