Soybeans, dryness support canola futures

Winnipeg – The ICE Futures canola market was stronger on Wednesday, taking some direction from Chicago Board of Trade soybeans.

Soybeans were up sharply as wet weather across the Midwestern United States continued to stress crops and delay seeding.

Meanwhile, a persistent lack of moisture in some key Canadian growing regions also remained supportive, according to traders.

However, the large old crop supply situation and persistent concerns over trade with China tempered the upside.

Canola prices also neared chart resistance from a technical standpoint.

About 36,188 canola contracts traded on Wednesday, which compares with Tuesday when 29,385 contracts changed hands. Spreading accounted for 25,274 of the contracts trade.

SOYBEAN futures at the Chicago Board of Trade posted solid gains on Wednesday, as persistent seeding delays had speculators covering their short positions.

After already moving to the long side in corn, speculators were still holding a large net short position in soybeans that they are now covering, according to market participants.

Forecasts calling for heavy rains across much of the United States Corn Belt over the next week provided the catalyst for the rally, as soybean planting is running well behind normal and more delays are expected given the wet weather.

The U.S. Department of Agriculture left its soybean production estimate unchanged at 4.15 billion bushels in yesterday’s report, but adjustments are expected in future reports.

Ongoing uncertainty over the China/U.S. trade dispute kept some caution in the bean market ahead of a possible meeting between the leaders of the two countries later this month.

CORN was firmer, finding some spillover strength from the gains in beans.

Tuesday’s larger-than-expected cut to U.S. corn production from the USDA remained supportive, as the trade factors in the lower yields and acres.

Solid demand from the ethanol sector added to the strength in corn, with the latest weekly report showing the largest production rate of the renewable fuel in 10 months.

WHEAT was mixed, with gains in the winter wheats and losses in Minneapolis spring wheat.

The forecasted rains in the Eastern Corn Belt will be especially detrimental to the soft wheat crops, causing the Chicago premium over Kansas City wheat to climb higher. Parts of the Southern Plains should also see harvest delaying rains.

 

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $2.13 at US$51.14 per barrel.

In the afternoon, the Canadian dollar was trading around US75.17 cents, down from 75.31 cents the previous trading day. The U.S. dollar was C$1.3303.

 

Winnipeg ICE Futures Canada dollars per tonne.

 

Canola Jul 19 457.50s +2.00 +0.44%

Canola Nov 19 468.90s +3.30 +0.71%

Canola Jan 20 473.90s +2.80 +0.59%

Canola Mar 20 479.10s +2.50 +0.52%

Canola May 20 483.80s +2.20 +0.46%

 

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 Jul 19 878-0s +18-6 +2.18%

Soybean Aug 19 884-6s +18-4 +2.14%

Soybean Sep 19 891-6s +18-4 +2.12%

Soybean Nov 19 905-4s +18-4 +2.09%

Soybean Jan 20 917-6s +17-4 +1.94%

 

Soybean Meal Jul 19 319.5s +5.1 +1.62%

Soybean Meal Aug 19 320.8s +5.2 +1.65%

Soybean Meal Sep 19 322.4s +5.1 +1.61%

 

Soybean Oil Jul 19 27.56s +0.34 +1.25%

Soybean Oil Aug 19 27.69s +0.34 +1.24%

Soybean Oil Sep 19 27.82s +0.35 +1.27%

 

Corn Jul 19 430-0s +2-2 +0.53%

Corn Sep 19 438-2s +2-0 +0.46%

Corn Dec 19 448-4s +1-4 +0.34%

Corn Mar 20 456-2s +0-6 +0.16%

Corn May 20 458-4s unch unch

 

Oats Jul 19 300-4s -3-2 -1.07%

Oats Sep 19 294-4s -1-0 -0.34%

Oats Dec 19 289-0s -2-6 -0.94%

Oats Mar 20 291-2s -3-4 -1.19%

Oats May 20 288-6s -3-4 -1.20%

 

Wheat Jul 19 526-2s +8-2 +1.59%

Wheat Sep 19 531-0s +9-6 +1.87%

Wheat Dec 19 542-2s +10-2 +1.93%

Wheat Mar 20 552-4s +10-4 +1.94%

Wheat May 20 556-6s +10-0 +1.83%

 

Minneapolis

Spring Wheat Jul 19 564-6s -4-6 -0.83%

Spring Wheat Sep 19 573-0s -5-0 -0.87%

Spring Wheat Dec 19 584-0s -3-6 -0.64%

Spring Wheat Mar 20 595-6s -3-2 -0.54%

Spring Wheat May 20 603-4s -2-4 -0.41%

 

Kansas City

Hard Red Wheat Jul 19 462-6s +5-2 +1.15%

Hard Red Wheat Sep 19 475-4s +5-2 +1.12%

Hard Red Wheat Dec 19 498-2s +5-0 +1.01%

Hard Red Wheat Mar 20 520-0s +5-0 +0.97%

Hard Red Wheat May 20 533-6s +4-4 +0.85%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 19 109.650s -1.025 -0.93%

Live Cattle Aug 19 105.200s -1.625 -1.52%

Live Cattle Oct 19 106.375s -1.475 -1.37%

 

Feeder Cattle Aug 19 137.800s -0.325 -0.24%

Feeder Cattle Sep 19 138.000s -0.600 -0.43%

Feeder Cattle Oct 19 138.150s -0.825 -0.59%

 

Lean Hogs Jun 19 79.025s -0.050 -0.06%

Lean Hogs Jul 19 84.375s unch unch

Lean Hogs Aug 19 82.525s -0.450 -0.54%

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