WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker Monday, as a strong Canadian dollar and weaker soy oil values weighed on prices.
The Canadian dollar has hovered around 76 U.S. cents for the past few days, which has made canola less attractive to buyers.
A Winnipeg-based trader explained that speculative long traders bailing out of contracts could cause canola values to hit lower than C$440.
Statistics Canada will release its field crop estimates on Thursday, which will provide some direction to markets.
There were 12,052 contracts traded on Monday, which compares with Friday when 15,417 contracts changed hands. Spreading accounted for 6,024 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were steady to slightly lower on Monday, as markets wait for direction. The United States Department of Agriculture (USDA) World Agriculture Supply Demand Estimates (WASDE) will be released on Thursday.
Some analysts are calling for a decline in yield of approximately 1.3 bushels per acre, which would be supportive for values. However, large seeded acreage in Brazil could counter that support.
According to a recent report, soybean exports increased by nearly 10 per cent in August. Deliveries consisted of mostly old-crop contract soybeans.
Approximately 906,000 tonnes of soybeans were exported last week. That’s down nearly 30 per cent from the previous week, and 2.3 per cent lower than this week last year.
CORN futures were steady on Monday, recovering after hitting fresh contract lows last week.
The USDA reported an export sale of 651,670 tonnes of corn to Mexico this morning. Most of that order is for the 2019/2020 crop, with 60,000 tonnes ordered for the 2020/2021 crop.
Corn demand remains in flux, as the U.S. biofuel industry has seen over 15 plants close or drastically cut production.
WHEAT futures were steady to higher on Monday, despite large worldwide stocks keeping a lid on values. A recent report pegged carryout volumes at the end of May to be above 1 billion bushels.
Though global wheat stocks remain very large, Australia’s wheat crop may be threatened by a drought.
Wheat futures found some strength from traders covering short positions ahead of the WASDE on Thursday.
The USDA reported wheat shipments of approximately 402,486 tonnes last week. That’s a drop of 27.94 per cent from the previous week, and about nine per cent lower than this week last year.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up $1.33 at US$57.85 per barrel.
In the afternoon, the Canadian dollar was trading around US76.02 cents, up from 75.91 cents the previous trading day. The U.S. dollar was C$1.3155.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Nov 19 439.80s -3.00 -0.68%
Canola Jan 20 447.70s -3.00 -0.67%
Canola Mar 20 454.90s -2.90 -0.63%
Canola May 20 461.40s -2.70 -0.58%
Canola Jul 20 467.70s -2.50 -0.53%
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 Sep 19 845-0s unch unch
Soybean Nov 19 857-6s unch unch
Soybean Jan 20 872-0s unch unch
Soybean Mar 20 885-6s -0-2 -0.03%
Soybean May 20 898-0s +0-4 +0.06%
Soybean Meal Sep 19 288.5s +1.3 +0.45%
Soybean Meal Oct 19 290.4s +1.1 +0.38%
Soybean Meal Dec 19 294.0s +1.0 +0.34%
Soybean Oil Sep 19 28.26s -0.22 -0.77%
Soybean Oil Oct 19 28.26s -0.20 -0.70%
Soybean Oil Dec 19 28.45s -0.20 -0.70%
Corn Sep 19 340-6s -1-6 -0.51%
Corn Dec 19 354-2s -1-2 -0.35%
Corn Mar 20 367-2s -1-4 -0.41%
Corn May 20 376-6s -0-6 -0.20%
Corn Jul 20 384-2s -0-4 -0.13%
Oats Sep 19 276-4s +0-2 +0.09%
Oats Dec 19 269-2s +0-2 +0.09%
Oats Mar 20 271-2s +0-6 +0.28%
Oats May 20 269-6s +0-6 +0.28%
Oats Jul 20 271-2s +1-6 +0.65%
Wheat Sep 19 474-4s +14-2 +3.10%
Wheat Dec 19 474-4s +10-6 +2.32%
Wheat Mar 20 479-0s +8-4 +1.81%
Wheat May 20 481-4s +5-6 +1.21%
Wheat Jul 20 484-0s +5-0 +1.04%
Minneapolis
Spring Wheat Sep 19 477-2s +2-4 +0.53%
Spring Wheat Dec 19 496-6s +2-4 +0.51%
Spring Wheat Mar 20 511-4s +2-4 +0.49%
Spring Wheat May 20 522-4s +2-2 +0.43%
Spring Wheat Jul 20 533-2s +2-2 +0.42%
Kansas City
Hard Red Wheat Sep 19 380-0s +4-6 +1.27%
Hard Red Wheat Dec 19 398-0s +4-6 +1.21%
Hard Red Wheat Mar 20 412-0s +4-0 +0.98%
Hard Red Wheat May 20 422-0s +3-4 +0.84%
Hard Red Wheat Jul 20 431-6s +4-0 +0.94%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Oct 19 94.200s -0.675 -0.71%
Live Cattle Dec 19 99.175s -0.575 -0.58%
Live Cattle Feb 20 106.075s -0.325 -0.31%
Feeder Cattle Sep 19 132.825s -0.525 -0.39%
Feeder Cattle Oct 19 129.825s -1.075 -0.82%
Feeder Cattle Nov 19 128.800s -1.575 -1.21%
Lean Hogs Oct 19 62.600s -0.900 -1.42%
Lean Hogs Dec 19 59.950s -2.525 -4.04%
Lean Hogs Feb 20 68.275s -2.575 -3.63%
