Speculation pushes canola to five-month low

Winnipeg – ICE Futures canola contracts were weaker on Tuesday, with the November contract settling at its lowest level in five months as some stops were hit and speculators added to their growing net short positions.

Ideas that canola was looking expensive compared to other oilseeds contributed to the selling pressure, as the losses in canola came despite a steady to firmer tone in the Chicago Board of Trade soy complex.

A lack of any significant Prairie weather concerns also weighed on prices, although some regions of Western Canada remain too dry, while others deal with excessive moisture.

About 14,680 canola contracts traded, which compares with Monday when 10,102 contracts changed hands. Spreading accounted for 5,722 of the contracts traded.

SOYBEAN futures held steady at the final bell, after trading to both sides of unchanged in choppy activity.

Condition ratings for the United States soybean crop were left unchanged at 71 per cent good to excellent in the latest weekly report from the U.S. Department of Agriculture. Development was ahead of normal overall, with 47 per cent of the crop in the blooming stage. That compares with 32 per cent last year and the five-year average of 27 per cent.

Uncertainty over Chinese tariffs on U.S. soybeans, and the ongoing trade dispute between the two countries kept some caution in the market.

The USDA’s monthly supply/demand report will be released on Thursday, and pre-report positioning was a feature.

CORN futures were pressured lower by the global trade concerns and relatively favourable growing conditions.

The U.S. corn crop was rated 75 per cent good to excellent in the latest weekly report, down only one point on the week. The corn crop was also developing at a rapid pace, with 37 per cent now in the silk stage. That’s well ahead of the 18 per cent average for this time of year.

WHEAT futures were all lower as seasonal harvest pressure and bearish technical signals weighed on values.

The U.S. winter wheat harvest was 63 per cent complete as of this past Sunday, up two point from the average.

Spring wheat in the U.S. was rated 80 per cent good to excellent by the USDA, an increase of three points on the week. The country’s spring wheat crop is now 81 per cent headed.

Declining production estimates out of Russia were slightly supportive.

 

OUTSIDE MARKETS

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

In the afternoon, the Canadian dollar was trading around US76.08 cents. The U.S. dollar was C$1.3144.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 18 514.50s -3.80 -0.73%

Canola Nov 18 502.50s -3.80 -0.75%

Canola Jan 19 508.00s -3.60 -0.70%

Canola Mar 19 512.70s -2.80 -0.54%

Canola May 19 515.90s -1.90 -0.37%

 

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 18 852-2s +0-4 +0.06%

Soybeans Aug 18 855-6s unch unch

Soybeans Sep 18 861-0s unch unch

Soybeans Nov 18 871-4s -0-4 -0.06%

Soybeans Jan 19 881-2s -0-4 -0.06%

 

Soybean Meal Jul 18 334.4s +2.6 +0.78%

Soybean Meal Aug 18 332.2s +2.3 +0.70%

Soybean Meal Sep 18 332.5s +2.5 +0.76%

 

Soybean Oil Jul 18 28.88s +0.14 +0.49%

Soybean Oil Aug 18 28.99s +0.13 +0.45%

Soybean Oil Sep 18 29.08s +0.12 +0.41%

 

Corn Jul 18 339-6s -6-0 -1.74%

Corn Sep 18 347-6s -6-2 -1.77%

Corn Dec 18 360-6s -6-2 -1.70%

Corn Mar 19 372-2s -5-6 -1.52%

Corn May 19 379-2s -5-4 -1.43%

 

Oats Jul 18 256-0s -2-6 -1.06%

Oats Sep 18 235-6s -2-6 -1.15%

Oats Dec 18 239-0s -2-0 -0.83%

Oats Mar 19 243-4s -2-0 -0.81%

Oats May 19 245-2s -2-0 -0.81%

 

Wheat Jul 18 489-4s -18-2 -3.59%

Wheat Sep 18 492-0s -16-0 -3.15%

Wheat Dec 18 510-0s -15-0 -2.86%

Wheat Mar 19 527-2s -13-2 -2.45%

Wheat May 19 538-2s -12-2 -2.23%

 

Minneapolis

Spring Wheat Jul 18 528-4s -10-6 -1.99%

Spring Wheat Sep 18 537-4s -10-4 -1.92%

Spring Wheat Dec 18 554-6s -10-0 -1.77%

Spring Wheat Mar 19 570-4s -9-6 -1.68%

Spring Wheat May 19 581-2s -9-0 -1.52%

 

Kansas City

Hard Red Wheat Jul 18 483-6s -3-6 -0.77%

Hard Red Wheat Sep 18 494-6s -11-2 -2.22%

Hard Red Wheat Dec 18 518-2s -10-4 -1.99%

Hard Red Wheat Mar 19 536-0s -9-4 -1.74%

Hard Red Wheat May 19 546-0s -8-6 -1.58%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle   Aug 18 105.450s -0.675 -0.64%

Live Cattle   Oct 18 107.825s -0.800 -0.74%

Live Cattle   Dec 18 112.275s -0.675 -0.60%

 

Feeder Cattle   Aug 18 151.850s +0.400 +0.26%

Feeder Cattle   Sep 18 152.050s +0.275 +0.18%

Feeder Cattle   Oct 18 152.150s +0.425 +0.28%

 

Lean Hogs   Jul 18 79.500s -0.725 -0.90%

Lean Hogs   Aug 18 69.775s -3.000 -4.12%

Lean Hogs   Oct 18 53.775s -2.350 -4.19%

About the author

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

Comments

Markets at a glance

Copyright © 2018. All market data is provided by Barchart Market Data Solutions. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

explore

Stories from our other publications