Soybeans correct higher, canola mixed

Winnipeg, (CNS Canada) – ICE Futures Canada canola contracts were mixed on Thursday, with gains in the nearby old-crop months and losses in the more deferred positions.

Advances in Chicago Board of Trade soybeans provided support, although activity was choppy in canola as the Canadian oilseed ran into resistance after already moving higher on Wednesday when soybeans were down.

While the threat of a trade war between China and the United States continued to overhang the grains and oilseeds, the concerns were muted somewhat on Thursday.

Large old crop supplies, expectations for increased acres this spring, and steady farmer hedges all put some pressure on canola values, according to participants.

About 19,789 canola contracts traded on Thursday, which compares with Wednesday when 39,372 contracts changed hands. Spreading accounted for 11,030 of the contracts traded.

SOYBEAN futures posted solid gains on Thursday, as the market saw a correction after dropping sharply on Wednesday in response to proposed Chinese tariffs on soybeans. There is no set date on implementing the 25 per cent tariffs, and many traders think cooler heads will eventually prevail in the trade dispute between China and the United States.

Buying interest built on itself throughout the day, with some stops hit on the way up.

Solid export demand was also supportive, as weekly with weekly U.S. soybean export sales of about 1.5 million tonnes coming in above trade guesses.

CORN was also due for a correction after yesterday’s declines, and moved higher with speculative buying.

However, weekly U.S. corn sales of about 900,000 tonnes were at the low end of trade estimates and put some pressure n values.

WHEAT futures were all higher as cold overnight temperatures in parts of the U.S. winter wheat belt may have caused some damage. Poor crop ratings in some areas also remained supportive.

However, weekly U.S. wheat export sales failed to live up to expectations, which helped temper the upside.

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 17 cents at US$63.54 per barrel.

In the afternoon, the Canadian dollar was trading around US78.41 cents, down from 78.29 cents the previous trading day. The U.S. dollar was C$1.2743.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola May 18 529.00s +0.60 +0.11%

Canola Jul 18 534.20s +0.40 +0.07%

Canola Nov 18 519.50s -2.00 -0.38%

Canola Jan 19 522.10s -2.40 -0.46%

Canola Mar 19 523.20s -2.20 -0.42%

 

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 May 18 1031-2s +16-0 +1.58%

Soybeans Jul 18 1042-0s +15-4 +1.51%

Soybeans Aug 18 1043-4s +14-6 +1.43%

Soybeans Sep 18 1037-0s +14-2 +1.39%

Soybeans Nov 18 1034-0s +15-0 +1.47%

 

Soybean Meal May 18 383.6s +1.8 +0.47%

Soybean Meal Jul 18 387.0s +2.1 +0.55%

Soybean Meal Aug 18 383.1s +1.3 +0.34%

 

Soybean Oil May 18 31.78s +0.10 +0.32%

Soybean Oil Jul 18 32.05s +0.09 +0.28%

Soybean Oil Aug 18 32.17s +0.09 +0.28%

 

Corn May 18 389-4s +8-4 +2.23%

Corn Jul 18 398-2s +8-4 +2.18%

Corn Sep 18 404-6s +8-0 +2.02%

Corn Dec 18 413-2s +8-2 +2.04%

Corn Mar 19 420-4s +8-2 +2.00%

 

Oats May 18 232-6s +2-6 +1.20%

Oats Jul 18 240-4s +2-6 +1.16%

Oats Sep 18 244-4s +2-0 +0.82%

Oats Dec 18 253-6s +3-0 +1.20%

Oats Mar 19 260-4s +3-6 +1.46%

 

Wheat May 18 464-6s +9-0 +1.97%

Wheat Jul 18 481-2s +8-2 +1.74%

Wheat Sep 18 498-0s +8-0 +1.63%

Wheat Dec 18 520-2s +8-0 +1.56%

Wheat Mar 19 537-2s +8-2 +1.56%

 

Minneapolis

Spring Wheat May 18 589-6s +13-0 +2.25%

Spring Wheat Jul 18 601-2s +14-0 +2.38%

Spring Wheat Sep 18 609-4s +14-4 +2.44%

Spring Wheat Dec 18 621-6s +14-2 +2.35%

Spring Wheat Mar 19 632-6s +13-0 +2.10%

 

Kansas City

Hard Red Wheat May 18 498-4s +12-4 +2.57%

Hard Red Wheat Jul 18 516-4s +12-2 +2.43%

Hard Red Wheat Sep 18 534-4s +11-6 +2.25%

Hard Red Wheat Dec 18 557-0s +10-6 +1.97%

Hard Red Wheat Mar 19 570-6s +10-0 +1.78%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Apr 18 114.300s +1.275 +1.13%

Live Cattle Jun 18 105.050s +2.725 +2.66%

Live Cattle Aug 18 104.875s +2.275 +2.22%

 

Feeder Cattle Apr 18 137.475s +2.975 +2.21%

Feeder Cattle May 18 138.050s +2.925 +2.16%

Feeder Cattle Aug 18 142.675s +2.450 +1.75%

 

Lean Hogs Apr 18 52.450s -0.625 -1.18%

Lean Hogs May 18 65.850s +2.975 +4.73%

Lean Hogs Jun 18 73.825s +0.550 +0.75%

 

 

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

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