Soybeans futures weakest in 10 years

Winnipeg – ICE Futures canola contracts were down sharply on Wednesday, as heightened world trade tensions had speculators firmly on the sell side of the market.

The ongoing trade war between the United States and China saw the U.S. announce it was considering placing 10 per cent tariffs on an additional US$200 billion worth of Chinese goods, with China set to reciprocate in kind. Chicago soybeans fell to new lows as a result, with canola and most other North American grains and oilseeds also under pressure.

Speculators were noted sellers in canola, adding to their growing net short positions. Relatively favourable crop conditions across most of the Prairies were also bearish, although some areas of concern remain.

Scale-down commercial buying provided some support, as end users took advantage of the falling prices.

About 21,395 canola contracts traded, which compares with Tuesday when 14,680 contracts changed hands. Spreading accounted for 7,218 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade fell to their weakest levels in 10 years on Wednesday amid heightening trade tensions between the United States and China.

China is expected to start levying tariffs on more U.S. commodities on top of the soybean tariffs already in place in response to threats of additional U.S. sanctions on Chinese goods.

Relatively favourable Midwestern crop conditions also weighed on values.

The U.S. Department of Agriculture releases updated supply/demand estimates on Thursday, and adjustments to the tables based on the latest trade disruptions are expected.

However, while China may not be buying U.S. soybeans right now, the falling prices are bringing in other customers.

CORN followed soybeans lower, as the grain was also pressured by the global trade concerns and relatively favourable Midwestern weather.

Declining demand from the ethanol sector put some additional pressure on values, with the latest weekly data on the renewable fuel showing rising stocks but the lowest weekly output in seven weeks.

WHEAT futures were also caught up in the broad selling seen in most commodity markets on Wednesday.

Seasonal harvest pressure contributed to the declines, although quality and yield concerns in some areas were a bit supportive.

U.S. wheat prices are also starting to look more competitive compared to European and Black Sea origin grain, which could bring in some scale-down commercial demand.

Canola drops with soybeans

By Phil Franz-Warkentin, Commodity News Service Canada

Winnipeg, July 11 (CNS Canada) – ICE Futures canola contracts were down sharply on Wednesday, as heightened world trade tensions had speculators firmly on the sell side of the market.

The ongoing trade war between the United States and China saw the U.S. announce it was considering placing 10 per cent tariffs on an additional US$200 billion worth of Chinese goods, with China set to reciprocate in kind. Chicago soybeans fell to new lows as a result, with canola and most other North American grains and oilseeds also under pressure.

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Speculators were noted sellers in canola, adding to their growing net short positions. Relatively favourable crop conditions across most of the Prairies were also bearish, although some areas of concern remain.

Scale-down commercial buying provided some support, as end users took advantage of the falling prices.

About 21,395 canola contracts traded, which compares with Tuesday when 14,680 contracts changed hands. Spreading accounted for 7,218 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade fell to their weakest levels in 10 years on Wednesday amid heightening trade tensions between the United States and China.

China is expected to start levying tariffs on more U.S. commodities on top of the soybean tariffs already in place in response to threats of additional U.S. sanctions on Chinese goods.

Relatively favourable Midwestern crop conditions also weighed on values.

The U.S. Department of Agriculture releases updated supply/demand estimates on Thursday, and adjustments to the tables based on the latest trade disruptions are expected.

However, while China may not be buying U.S. soybeans right now, the falling prices are bringing in other customers.

ADVERTISEMENT

CORN followed soybeans lower, as the grain was also pressured by the global trade concerns and relatively favourable Midwestern weather.

Declining demand from the ethanol sector put some additional pressure on values, with the latest weekly data on the renewable fuel showing rising stocks but the lowest weekly output in seven weeks.

WHEAT futures were also caught up in the broad selling seen in most commodity markets on Wednesday.

Seasonal harvest pressure contributed to the declines, although quality and yield concerns in some areas were a bit supportive.

U.S. wheat prices are also starting to look more competitive compared to European and Black Sea origin grain, which could bring in some scale-down commercial demand.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $3.73 at US$70.38 per barrel.

In the afternoon, the Canadian dollar was trading around US76.04 cents, down from 76.19 cents the previous trading day. The U.S. dollar was C$1.3151.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 18 498.40s -16.10 -3.13%

Canola Nov 18 494.00s -8.50 -1.69%

Canola Jan 19 500.00s -8.00 -1.57%

Canola Mar 19 504.50s -8.20 -1.60%

Canola May 19 508.90s -7.00 -1.36%

 

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 Jul 18 829-6s -22-4 -2.64%

Soybeans Aug 18 833-0s -22-6 -2.66%

Soybeans Sep 18 838-0s -23-0 -2.67%

Soybeans Nov 18 848-2s -23-2 -2.67%

Soybeans Jan 19 858-2s -23-0 -2.61%

 

Soybean Meal Jul 18 333.0s -1.4 -0.42%

Soybean Meal Aug 18 330.5s -1.7 -0.51%

Soybean Meal Sep 18 330.1s -2.4 -0.72%

 

Soybean Oil Jul 18 28.33s -0.55 -1.90%

Soybean Oil Aug 18 28.43s -0.56 -1.93%

Soybean Oil Sep 18 28.52s -0.56 -1.93%

 

Corn Jul 18 331-2s -8-4 -2.50%

Corn Sep 18 340-0s -7-6 -2.23%

Corn Dec 18 353-2s -7-4 -2.08%

Corn Mar 19 365-0s -7-2 -1.95%

Corn May 19 372-0s -7-2 -1.91%

 

Oats Jul 18 256-0s unch unch

Oats Sep 18 236-0s +0-2 +0.11%

Oats Dec 18 239-6s +0-6 +0.31%

Oats Mar 19 244-0s +0-4 +0.21%

Oats May 19 244-2s -1-0 -0.41%

 

Wheat Jul 18 469-6s -19-6 -4.03%

Wheat Sep 18 471-6s -20-2 -4.12%

Wheat Dec 18 490-4s -19-4 -3.82%

Wheat Mar 19 509-2s -18-0 -3.41%

Wheat May 19 521-6s -16-4 -3.07%

 

Minneapolis

Spring Wheat Jul 18 519-6s -8-6 -1.66%

Spring Wheat Sep 18 525-4s -12-0 -2.23%

Spring Wheat Dec 18 544-2s -10-4 -1.89%

Spring Wheat Mar 19 560-4s -10-0 -1.75%

Spring Wheat May 19 571-2s -10-0 -1.72%

 

Kansas City

Hard Red Wheat Jul 18 463-0s -20-6 -4.29%

Hard Red Wheat Sep 18 474-0s -20-6 -4.19%

Hard Red Wheat Dec 18 498-6s -19-4 -3.76%

Hard Red Wheat Mar 19 517-2s -18-6 -3.50%

Hard Red Wheat May 19 528-0s -18-0 -3.30%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Aug 18 103.850s -1.600 -1.52%

Live Cattle Oct 18 106.250s -1.575 -1.46%

Live Cattle Dec 18 110.675s -1.600 -1.43%

 

Feeder Cattle Aug 18 149.400s -2.450 -1.61%

Feeder Cattle Sep 18 149.425s -2.625 -1.73%

Feeder Cattle Oct 18 149.950s -2.200 -1.45%

 

Lean Hogs Jul 18 79.775s +0.275 +0.35%

Lean Hogs Aug 18 68.800s -0.975 -1.40%

Lean Hogs Oct 18 52.025s -1.750 -3.25%

 

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