Strong soy prices boost canola futures

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Tuesday, supported by strong soy oil prices.

Soy oil is trading at multi-month highs, boosted mainly by positive trade talks between the United States and China.

Canola values are currently competitively priced compared to its vegetable oil counterparts, with strong crush margins a feature.

As of today, there is no weather premium in canola prices, despite the significant snow in most areas of Manitoba late last week. The trader said a weather premium may be introduced depending on how harvest progress continues over the next few weeks.

A relatively stronger Canadian dollar also put pressure on canola values. The dollar is currently around 75.7 U.S. cents.

On Tuesday, 53,845 contracts were traded, which compares with Friday when 37,605 contracts changed hands. Spreading accounted for 42,210 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were mostly lower on Tuesday, despite positive trade sentiments between the United States and China.

Following negotiations in Washington, Chinese officials have said they’re prepared to start purchasing more U.S. agriculture products, including pork and soybeans, in exchange for relief from the next round of tariffs.

Experts expect soybean harvest progress to be around 25 per cent complete, while typical harvest progress is around 50 per cent done.

CORN futures were slightly lower today, due to continually quiet demand.

A recent export report from the USDA showed approximately 470,000 tonnes of corn were inspected for export last week. That brought year-to-date corn exports to 2.496 million tonnes, which is almost 64 per cent below exports at this time last year.

Market participants expect the corn harvest to be around 22 per cent complete, slightly behind the average of 35 per cent complete.

Drier weather in key growing areas of the Corn Belt will allow for some harvest progress this week.

WHEAT futures were lower on Tuesday, due to competitively priced global competition.

Last week, the USDA reported approximately 462,000 tonnes of wheat was inspected for export. About 30 per cent of that was hard red wheat.

Total wheat exports this year are around 8.9 million tonnes, which is 17 per cent ahead of last year’s exports.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 78 cents at US$52.81 per barrel.

In the afternoon, the Canadian dollar was trading around US75.69 cents, down from 75.77 cents the previous trading day. The U.S. dollar was C$1.3211.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 19 461.40s +1.50 +0.33%

Canola Jan 20 470.20s +1.50 +0.32%

Canola Mar 20 479.00s +1.60 +0.34%

Canola May 20 486.50s +1.90 +0.39%

Canola Jul 20 492.00s +1.60 +0.33%

 

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 Nov 19 934-0s -6-4 -0.69%

Soybean Jan 20 948-4s -6-4 -0.68%

Soybean Mar 20 959-2s -5-6 -0.60%

Soybean May 20 967-0s -5-2 -0.54%

Soybean Jul 20 976-2s -4-2 -0.43%

 

Soybean Meal Dec 19 307.8s -3.1 -1.00%

Soybean Meal Jan 20 310.4s -3.1 -0.99%

Soybean Meal Mar 20 314.1s -2.9 -0.91%

 

Soybean Oil Dec 19 30.39s +0.39 +1.30%

Soybean Oil Jan 20 30.63s +0.39 +1.29%

Soybean Oil Mar 20 30.88s +0.37 +1.21%

 

Corn Dec 19 393-2s -4-4 -1.13%

Corn Mar 20 404-2s -3-2 -0.80%

Corn May 20 410-4s -2-0 -0.48%

Corn Jul 20 415-2s -0-6 -0.18%

Corn Sep 20 406-2s -0-2 -0.06%

 

Oats Dec 19 296-4s -1-2 -0.42%

Oats Mar 20 294-2s -0-4 -0.17%

Oats May 20 295-2s +0-2 +0.08%

Oats Jul 20 294-4s -0-2 -0.08%

Oats Sep 20 292-6s -0-4 -0.17%

 

Wheat Dec 19 507-0s -4-0 -0.78%

Wheat Mar 20 513-2s -3-4 -0.68%

Wheat May 20 518-2s -3-0 -0.58%

Wheat Jul 20 522-2s -2-2 -0.43%

Wheat Sep 20 528-6s -2-2 -0.42%

 

Minneapolis

Spring Wheat Dec 19 545-4s -6-4 -1.18%

Spring Wheat Mar 20 559-4s -6-6 -1.19%

Spring Wheat May 20 569-0s -6-4 -1.13%

Spring Wheat Jul 20 577-0s -5-0 -0.86%

Spring Wheat Sep 20 584-4s -3-6 -0.64%

 

Kansas City

Hard Red Wheat Dec 19 421-2s -4-4 -1.06%

Hard Red Wheat Mar 20 434-2s -3-4 -0.80%

Hard Red Wheat May 20 444-0s -2-6 -0.62%

Hard Red Wheat Jul 20 453-2s -3-0 -0.66%

Hard Red Wheat Sep 20 463-4s -2-6 -0.59%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Oct 19 111.000s +0.375 +0.34%

Live Cattle Dec 19 113.450s unch unch

Live Cattle Feb 20 119.550s +0.275 +0.23%

 

Feeder Cattle Oct 19 145.000s -0.550 -0.38%

Feeder Cattle Nov 19 146.075s unch unch

Feeder Cattle Jan 20 142.175s -0.050 -0.04%

 

Lean Hogs Dec 19 72.125s +3.000 +4.34%

Lean Hogs Feb 20 79.150s +1.900 +2.46%

Lean Hogs Apr 20 84.900s +1.325 +1.59%

 

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