Trade talks strengthen grains; canola up

WINNIPEG, – Intercontinental Exchange (ICE) Futures canola contracts were steady to stronger on Thursday, due to spillover from Chicago. However, forecasts of rain and a stronger Canadian dollar weighed on values.

Gains were made on the Chicago Board of Trade as trade talks between the United States and China will resume in the near future. The spillover was felt in the canola market.

grains; Rain fell in parts of Alberta and Saskatchewan on Thursday. More precipitation has been forecast across the Prairies come the weekend. The rain won’t end dry conditions, but will provide a timely boost to struggling crops.

The Canadian dollar rose to 75.78 U.S. cents by mid-afternoon Thursday on increased crude oil prices.

Tensions rose in the Persian Gulf earlier today after Iran shot down an U.S. military drone Iran claimed the drone was over its airspace, while U.S. claimed the drone was over international waters. Fears of a wider confrontation boosted oil prices.

There were 34,483 contracts traded on Thursday, which compares with Wednesday when 25,312 contracts changed hands. Spreading accounted for 24,482 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jul 455.80 up 0.30
Nov 469.70 up 0.40
Jan 476.90 up 1.00
Mar 482.70 up 1.10

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, due to concerns about the weather and the coming resumption of U.S./China trade talks in the near future.

Soybean bids rose by 12 cents per bushel, while soyoil was up 0.22 of a cent and soymeal jumped US$6.10 per hundredweight.

The weather forecast has called for two inches or more rain over the U.S. Midwest and Plains. The thoroughly soaked region is likely to see acres go unplanted and reduced yields from crops struggling to grow.

Chinese President Xi Jinping and U.S. President Donald Trump spoke by phone on Wednesday, and agreed that trade talks will be restarted. Also, the presidents will discuss trade at next week’s G20 Summit in Japan.

Thursday’s export sales report from the U.S Department of Agriculture (USDA) said 772,000 tonnes of soybeans were sold. That was near the top of market expectations.

CORN futures were higher Thursday, on spillover from soybeans.

Prices climbed by eight to nine cents per bushel.

Corn export sales came in at 399,000 tonnes, according to the USDA. The sales were at the low end of market expectations.

An Iowa State University agriculture economist predicted U.S. corn yields could fall by 20 to 22 per cent this year. That would put the national average yield at 135 bushels per acre.

WHEAT futures were mixed on Thursday, with gains at Chicago of four to five cents per bushel and two to three cents at Kansas City wheat. Bids at Minneapolis futures lost about three cents per bushel.

Wheat exports sales were disappointing, as 188,000 tonnes were sold. That was 10,000 tonnes under the low end of expectations.

Ahead of Statistics Canada’s acreage production report, scheduled for June 26, a group of analysts pegged total wheat acres in Canada at 25.70 million acres, which would be relatively steady with April’s estimate 25.67 million and one million acres more than last year.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up $2.89 at US$56.65 per barrel.

In the afternoon, the Canadian dollar was trading around US75.81 cents, up from 74.95 cents the previous trading day. The U.S. dollar was C$1.3191.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 19  455.80s  +0.30  +0.07%

Canola Nov 19  469.70s  +0.40  +0.09%

Canola Jan 20  476.90s  +1.00  +0.21%

Canola Mar 20  482.70s  +1.10  +0.23%

Canola May 20  487.20s  +1.00  +0.21%

 

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 Jul 19  915-4s  +12-2  +1.36%

Soybean Aug 19  921-6s  +12-2  +1.35%

Soybean Sep 19  928-0s  +12-0  +1.31%

Soybean Nov 19  941-0s  +12-2  +1.32%

Soybean Jan 20  953-2s  +12-2  +1.30%

 

Soybean Meal Jul 19  323.0s  +6.1  +1.92%

Soybean Meal Aug 19  324.2s  +6.0  +1.89%

Soybean Meal Sep 19  325.9s  +6.1  +1.91%

 

Soybean Oil Jul 19  28.59s  +0.22  +0.78%

Soybean Oil Aug 19  28.72s  +0.22  +0.77%

Soybean Oil Sep 19  28.83s  +0.22  +0.77%

 

Corn Jul 19  450-0s  +9-0  +2.04%

Corn Sep 19  454-6s  +8-4  +1.90%

Corn Dec 19  461-0s  +7-6  +1.71%

Corn Mar 20  466-2s  +7-4  +1.63%

Corn May 20  468-0s  +7-6  +1.68%

 

Oats Jul 19  283-6s  -1-6  -0.61%

Oats Sep 19  280-6s  -3-6  -1.32%

Oats Dec 19  283-0s  -5-4  -1.91%

Oats Mar 20  286-6s  -5-4  -1.88%

Oats May 20  286-0s  -5-4  -1.89%

 

Wheat Jul 19  526-4s  +4-2  +0.81%

Wheat Sep 19  531-6s  +5-0  +0.95%

Wheat Dec 19  541-4s  +5-4  +1.03%

Wheat Mar 20  552-2s  +5-6  +1.05%

Wheat May 20  555-2s  +6-0  +1.09%

 

Minneapolis

Spring Wheat Jul 19  538-2s  -3-2  -0.60%

Spring Wheat Sep 19  545-4s  -3-0  -0.55%

Spring Wheat Dec 19  557-4s  -3-4  -0.62%

Spring Wheat Mar 20  571-0s  -2-2  -0.39%

Spring Wheat May 20  579-0s  -2-2  -0.39%

 

Kansas City

Hard Red Wheat Jul 19  460-4s  +3-0  +0.66%

Hard Red Wheat Sep 19  470-6s  +2-6  +0.59%

Hard Red Wheat Dec 19  491-4s  +1-4  +0.31%

Hard Red Wheat Mar 20  512-2s  +1-2  +0.24%

Hard Red Wheat May 20  524-6s  +0-6  +0.14%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 19  108.175s  -0.325  -0.30%

Live Cattle Aug 19  103.950s  -0.600  -0.57%

Live Cattle Oct 19  105.575s  -0.525  -0.49%

 

Feeder Cattle Aug 19  134.700s  -1.825  -1.34%

Feeder Cattle Sep 19  135.375s  -1.625  -1.19%

Feeder Cattle Oct 19  135.825s  -1.600  -1.16%

 

Lean Hogs Jul 19  79.250s  -2.375  -2.91%

Lean Hogs Aug 19  80.900s  -2.100  -2.53%

Lean Hogs Oct 19  75.725s  -1.725  -2.23%

 

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