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Strong dollar, high acreage pushes canola down

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were mostly lower on Friday, as strength in the Canadian dollar and confirmation of large planted area weighed on values.

In a report out this morning, Statistics Canada pegged canola seedings at 22.7 million acres, which was well above an earlier estimate of 21.4 million but in line with trade guesses and still about 250,000 acres below the record area seeded in 2017.

Improving moisture conditions across Western Canada also put some pressure on values, as traders square positions ahead of the long weekend. Canadian markets will be closed Monday for Canada Day, while markets in the United States will remain open.

The Canadian dollar was up by about half a cent relative to its U.S. counterpart, which weighed on prices.

About 10,793 canola contracts traded, which compares with Thursday when 26,828 contracts changed hands. Spreading accounted for 8,048 of the contracts traded.

SOYBEAN futures were weaker on Friday as the market reacted to the United States Department of Agriculture’s latest acreage and stocks estimates.

The USDA raised its forecast for U.S. soybean plantings to 89.5 million acres, which was up by about half a million from an earlier estimate. However, average market expectations had been for an even larger acreage base, and soybeans found some support from the number.

Quarterly U.S. soybeans stocks as of June 1, at 1.2 billion bushels, marked a new record for that time of year, but were in line with expectations.

Canadian soybean area this year was pegged at 6.3 million acres by Statistics Canada, which would be a drop of about a million acres from 2017.

CORN futures were up on the day, finding some support from a rally in wheat.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 70 cents at US$74.15 per barrel.

In the afternoon, the Canadian dollar was trading around US76.13 cents, up from 75.44 cents the previous trading day. The U.S. dollar was C$1.3135.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 18  521.00s  +10.60  +2.08%

Canola Nov 18  509.40s  -1.00  -0.20%

Canola Jan 19  514.30s  -1.90  -0.37%

Canola Mar 19  517.10s  -1.90  -0.37%

Canola May 19  518.50s  -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  858-4s  -2-6  -0.32%

Soybeans Aug 18  863-4s  -3-2  -0.37%

Soybeans Sep 18  869-2s  -3-2  -0.37%

Soybeans Nov 18  880-0s  -3-4  -0.40%

Soybeans Jan 19  889-0s  -3-4  -0.39%

 

Soybean Meal Jul 18  332.8s  +1.4  +0.42%

Soybean Meal Aug 18  331.0s  +0.3  +0.09%

Soybean Meal Sep 18  330.9s  -0.2  -0.06%

 

Soybean Oil Jul 18  29.12s  +0.11  +0.38%

Soybean Oil Aug 18  29.23s  +0.10  +0.34%

Soybean Oil Sep 18  29.34s  +0.09  +0.31%

 

Corn Jul 18  350-2s  +5-2  +1.52%

Corn Sep 18  359-4s  +5-2  +1.48%

Corn Dec 18  371-2s  +5-2  +1.43%

Corn Mar 19  381-2s  +5-4  +1.46%

Corn May 19  388-0s  +5-6  +1.50%

 

Oats Jul 18  250-4s  +7-4  +3.09%

Oats Sep 18  240-0s  +2-4  +1.05%

Oats Dec 18  245-0s  +7-4  +3.16%

Oats Mar 19  249-2s  +7-6  +3.21%

Oats May 19  251-2s  +7-4  +3.08%

 

Wheat Jul 18  497-4s  +18-0  +3.75%

Wheat Sep 18  501-2s  +17-6  +3.67%

Wheat Dec 18  516-6s  +17-2  +3.45%

Wheat Mar 19  532-2s  +17-0  +3.30%

Wheat May 19  543-6s  +16-6  +3.18%

 

Minneapolis

Spring Wheat Jul 18  521-4s  unch  unch

Spring Wheat Sep 18  536-6s  -0-6  -0.14%

Spring Wheat Dec 18  554-4s  -0-6  -0.14%

Spring Wheat Mar 19  570-4s  -0-4  -0.09%

Spring Wheat May 19  580-4s  -0-6  -0.13%

 

Kansas City

Hard Red Wheat Jul 18  470-6s  +17-4  +3.86%

Hard Red Wheat Sep 18  488-4s  +16-4  +3.50%

Hard Red Wheat Dec 18  511-4s  +16-0  +3.23%

Hard Red Wheat Mar 19  530-2s  +15-6  +3.06%

Hard Red Wheat May 19  542-6s  +15-6  +2.99%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 18  107.000s  -1.200  -1.11%

Live Cattle Aug 18  106.725s  +3.000  +2.89%

Live Cattle Oct 18  110.025s  +3.000  +2.80%

 

Feeder Cattle Aug 18  151.325s  +4.500  +3.06%

Feeder Cattle Sep 18  150.950s  +3.575  +2.43%

Feeder Cattle Oct 18  150.075s  +2.800  +1.90%

 

Lean Hogs Jul 18  82.875s  +1.750  +2.16%

Lean Hogs Aug 18  76.450s  +0.725  +0.96%

Lean Hogs Oct 18  59.775s  -1.650  -2.69%

 

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