Stronger dollar, soy puts opposing pressures on canola

The ICE Futures canola contacts closed narrowly mixed, after having spent the trading session finding support from a strengthening soy complex and pressure from a stronger Canadian dollar.

Chicago Board of Trade (CBOT) soybean, oil and meal contracts were all stronger at market close. Traders shifted their attention throughout the day from United States’ equity markets to commodity markets, after equity markets took a beating due to low Apple Inc. sales pointing to a slowing global economy.

The Canadian dollar (CAD) found strength today from rising gold prices. The drop in the equity markets pushed traders into the metal markets, which helped gold prices to go higher. The stronger CAD pressured canola contracts.

While the canola market rallied yesterday, the longer technical bias is pointed to the downside. Traders are also still concerned about the softer demand for Canadian canola.

About 13,577 canola contracts traded, which compares with Wednesday when 7,790 contracts changed hands. Spreading accounted for 6,162 of the contracts traded.

The forecast in Brazil is calling for rain in the next four to five days, while the extended forecast is dry. Estimates for Brazil’s soybean production have been lowered but the crop still isn’t expected to be below normal.

The U.S Department of Agriculture (USDA) is expected to make a decision tomorrow morning about whether it will delay the release of next week’s major reports due to the ongoing government shutdown. The USDA has said it will need one week to analyze the data for the crop report.

CBOT corn prices finished the day stronger, also finding support from dropping equity markets.

Brazil’s safrinha corn crop could be affected by the ongoing dryness in the country. The crop is planted after soybeans and is normally harvested in late January into February. It accounts for roughly two-thirds of Brazil’s total corn production.

Brazil increased its ethanol exports to 107.43 million litres in December, up by 42.25 million litres from the previous year. Corn exports in Brazil rose to 4.014 million tonnes last month, up by 20,000 tonnes.

Wheat futures in the U.S. finished the day in the green, also supported by the equity markets drop.

The global wheat market is currently quiet with only a few countries having tenders out. Ethiopia is looking for 40,000 tonnes of milling wheat, and Pakistan has a tender out to export 100,000 tonnes wheat.
It is expected exports will pick up soon for U.S. wheat as it is competitively priced. Russia is still on holiday until the middle of next week, which will keep them out of the global wheat trade until then.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 55 cents at US$47.09 per barrel.

In the afternoon, the Canadian dollar was trading around US74.07 cents, up from 73.53 cents the previous trading day. The U.S. dollar was C$1.3501.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jan 19 482.10s +0.30 +0.06%

Canola Mar 19 489.10s +0.30 +0.06%

Canola May 19 497.00s -0.10 -0.02%

Canola Jul 19 504.00s -0.20 -0.04%

Canola Nov 19 501.30s -0.10 -0.02%

 

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 Jan 19 900-2s +5-4 +0.61%

Soybeans Mar 19 912-6s +5-6 +0.63%

Soybeans May 19 925-4s +6-0 +0.65%

Soybeans Jul 19 937-2s +6-0 +0.64%

Soybeans Aug 19 941-6s +5-6 +0.61%

 

Soybean Meal Jan 19 312.7s +1.7 +0.55%

Soybean Meal Mar 19 316.7s +1.8 +0.57%

Soybean Meal May 19 320.0s +1.7 +0.53%

 

Soybean Oil Jan 19 28.18s +0.28 +1.00%

Soybean Oil Mar 19 28.43s +0.25 +0.89%

Soybean Oil May 19 28.69s +0.25 +0.88%

 

Corn Mar 19 379-6s +4-0 +1.06%

Corn May 19 387-4s +4-0 +1.04%

Corn Jul 19 394-6s +3-6 +0.96%

Corn Sep 19 397-0s +3-2 +0.83%

Corn Dec 19 401-0s +2-6 +0.69%

 

Oats Mar 19 278-4s +0-2 +0.09%

Oats May 19 279-4s -1-2 -0.45%

Oats Jul 19 281-6s -1-2 -0.44%

Oats Sep 19 272-4s +1-0 +0.37%

Oats Dec 19 270-2s +0-4 +0.19%

 

Wheat Mar 19 513-6s +7-0 +1.38%

Wheat May 19 520-0s +7-0 +1.36%

Wheat Jul 19 527-0s +6-6 +1.30%

Wheat Sep 19 537-0s +6-2 +1.18%

Wheat Dec 19 551-6s +6-0 +1.10%

 

Minneapolis

Spring Wheat Mar 19 565-2s +11-2 +2.03%

Spring Wheat May 19 570-4s +11-0 +1.97%

Spring Wheat Jul 19 577-2s +10-4 +1.85%

Spring Wheat Sep 19 584-6s +9-6 +1.70%

Spring Wheat Dec 19 598-6s +9-0 +1.53%

 

Kansas City

Hard Red Wheat Mar 19 503-4 +11-0 +2.23%

Hard Red Wheat May 19 515-2 +12-0 +2.38%

Hard Red Wheat Jul 19 525-4 +11-2 +2.19%

Hard Red Wheat Sep 19 537-4 +10-4 +1.99%

Hard Red Wheat Dec 19 554-4 +10-4 +1.93%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 19 123.225s -0.300 -0.24%

Live Cattle Apr 19 125.400s -0.375 -0.30%

Live Cattle Jun 19 116.775s -0.375 -0.32%

 

Feeder Cattle Jan 19 146.525s -1.425 -0.96%

Feeder Cattle Mar 19 144.450s -1.500 -1.03%

Feeder Cattle Apr 19 145.225s -1.375 -0.94%

 

Lean Hogs Feb 19 62.150s +0.450 +0.73%

Lean Hogs Apr 19 67.425s -0.125 -0.19%

Lean Hogs May 19 74.025s +0.200 +0.27%

 

About the author

Comments

Markets at a glance

Copyright © 2019. 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