Speculative selling drops canola; wheat fairly steady

Winnipeg – ICE Futures canola contracts were weaker on Friday, finishing right above major chart support as speculators added to their net short positions.

The nearby March contract settled at C$475.80, which was right above major support around C$475.00 per tonne.

Large supplies and a lack of significant buying interest contributed to the declines, with a firmer tone in the Canadian dollar also bearish for the market.

However, soybeans and soyoil were higher at the Chicago Board of Trade, providing some support.

The canola market will be closed Monday for Manitoba’s Louis Riel holiday, while markets in the United States will close for Presidents Day. Positioning ahead of the long weekend was a feature.

About 29,228 canola contracts traded on Friday, which compares with Thursday when 31,369 contracts changed hands. Spreading accounted for 24,494 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, amid optimism that the United States and China may be able to reach some kind of trade agreement as negotiations move to Washington D.C. next week.

The National Oilseed Processors Association reported a record crush for the month of January of 171.6 million bushels. Soyoil stocks in the country were up slightly on the month, but about 10 per cent lower than the supplies on hand at the same point the previous year.

Concerns over yield losses in Brazil due to hot and dry conditions during the growing season remained supportive as well, although the weather has shown some improvement as the harvest progresses in the country.

CORN futures held steady, as spillover support from the gains in soybeans was countered by losses in wheat pulling in the opposite direction.

The U.S. Department of Agriculture reported private export sales of 205,744 tonnes of corn to unknown destinations this morning.

WHEAT futures were steady to mostly lower, with Minneapolis spring wheat holding near unchanged and the winter wheats seeing follow-through selling after Thursday’s declines.

Informa Economics lowered their estimate on U.S. spring wheat plantings slightly, but at 13.6 million acres the seeded area would still be up by about a million acres on the year.

European wheat futures were down sharply in overnight trade, and the losses there weighed on the U.S. futures as well.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York were up 4.33 cents at US$55.74 per barrel.

In the afternoon, the Canadian dollar was trading around US75.49 cents, down 0.04 cents from the previous trading day. The U.S. dollar was C$1.3247

 

Winnipeg ICE Futures Canada dollars per tonne.

Name / Contract Last Change % Change

Canola Mar 19 475.80s -2.90 -0.61%

Canola May 19 484.80s -2.40 -0.49%

Canola Jul 19 492.10s -2.70 -0.55%

Canola Nov 19 494.20s -2.40 -0.48%

Canola Jan 20 499.00s -2.40 -0.48%

 

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 Mar 19 907-4s +4-0 +0.44%

Soybean May 19 921-4s +3-6 +0.41%

Soybean Jul 19 935-0s +3-6 +0.40%

Soybean Aug 19 940-2s +3-4 +0.37%

Soybean Sep 19 943-4s +3-4 +0.37%

 

Soybean Meal Mar 19 306.5s +1.0 +0.33%

Soybean Meal May 19 310.5s +0.9 +0.29%

Soybean Meal Jul 19 314.6s +0.9 +0.29%

 

Soybean Oil Mar 19 29.95s +0.06 +0.20%

Soybean Oil May 19 30.28s +0.05 +0.17%

Soybean Oil Jul 19 30.62s +0.05 +0.16%

 

Corn Mar 19 374-6s unch unch

Corn May 19 382-6s -0-2 -0.07%

Corn Jul 19 390-4s -0-2 -0.06%

Corn Sep 19 394-2s +0-2 +0.06%

Corn Dec 19 399-2s unch unch

 

Oats Mar 19 275-6s -6-2 -2.22%

Oats May 19 280-6s -5-6 -2.01%

Oats Jul 19 280-6s -5-0 -1.75%

Oats Sep 19 271-6s -4-6 -1.72%

Oats Dec 19 263-6s -6-0 -2.22%

 

Wheat Mar 19 504-2s -2-6 -0.54%

Wheat May 19 507-0s -3-4 -0.69%

Wheat Jul 19 509-2s -4-0 -0.78%

Wheat Sep 19 518-4s -3-4 -0.67%

Wheat Dec 19 532-4s -3-2 -0.61%

 

Minneapolis

Spring Wheat Mar 19 573-0s -1-6 -0.30%

Spring Wheat May 19 567-0s -0-6 -0.13%

Spring Wheat Jul 19 570-2s -2-0 -0.35%

Spring Wheat Sep 19 575-6s -1-2 -0.22%

Spring Wheat Dec 19 586-6s -2-4 -0.42%

 

Kansas City

Hard Red Wheat Mar 19 476-4s -5-0 -1.04%

Hard Red Wheat May 19 484-4s -3-6 -0.77%

Hard Red Wheat Jul 19 493-2s -2-4 -0.50%

Hard Red Wheat Sep 19 505-0s -2-0 -0.39%

Hard Red Wheat Dec 19 522-4s -1-6 -0.33%

 

Live Cattle (Pit) Feb 19 126.625s +0.500 +0.40%

Live Cattle (Pit) Apr 19 127.175s -0.200 -0.16%

Live Cattle (Pit) Jun 19 118.075s -0.200 -0.17%

 

Feeder Cattle (Pit) Mar 19 142.600s -1.475 -1.02%

Feeder Cattle (Pit) Apr 19 145.225s -1.275 -0.87%

Feeder Cattle (Pit) May 19 146.575s -1.100 -0.74%

 

Lean Hogs (Pit) Apr 19 59.525s +0.825 +1.41%

Lean Hogs (Pit) May 19 68.450s +0.750 +1.11%

Lean Hogs (Pit) Jun 19 76.725s +0.250 +0.33%

About the author

Markets at a glance

explore

Stories from our other publications