Veg oils a drag on canola futures

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished weaker on Friday, as declines in other vegetable oils continued to weigh on values.

A trader said there was profit-taking in Chicago soyoil. Also, reports stated the lack of Chinese demand for United States soybeans has also been an issue.

It’s a similar case for Malaysian palm oil, which has contended with poor demand from India and China, according to a report.

Projections of record soybean production in Brazil have weighed on values as well.

By mid-afternoon Friday, the Canadian dollar was slightly lower at 76.04 U.S. cents, compared to Thursday’s close of 76.09.

There were 27,115 contracts traded on Friday, which compares with Thursday when 19,028 contracts changed hands. Spreading accounted for 22,220 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Mar 469.50 dn 3.60
May 478.60 dn 3.40
Jul 484.50 dn 2.60
Nov 490.00 dn 1.60

SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Friday, due to growing uncertainty in global markets stemming from the Wuhan virus.

The outbreak of the Wuhan virus (a strain of the coronavirus) has created uncertainty in the commodity and stock markets. China has sealed off 10 cities following reports of more than two dozen deaths and in excess of 800 reported cases. The Wuhan virus creates an illness similar to SARS. There have been reported cases in Japan, Singapore, South Korea, Taiwan, Thailand and the United States. The United Kingdom has tested 14 people with no confirmed cases, but wants to test almost 2,000 more people who travelled to China recently.

The White House said on Friday that U.S. President Donald Trump will visit India in February to sign a new trade deal. Trump wants India to increase its purchases of U.S. agricultural goods by up to US$6 billion.

The U.S. Department of Agriculture (USDA) issued its weekly export sales report today. Soybeans for the current marketing year hit 790,000 tonnes, which was at the low end of trade expectations. Soymeal came in at almost 642,000 tonnes and soyoil hit 55,600 tonnes.

Canada, the world’s largest producer of canola, is expected to see production go down in 2020, according to Agriculture and Agri-Food Canada (AAFC). The department released its estimates on Thursday, and forecast a two per cent drop in planted acres at about 20.5 million. As well, production is to slip to 18.5 million tonnes, which would be the lowest amount in six years. Ending stocks for 2019/20 were pegged at 3.5 million tonnes and at 3.0 million for 2020/21.

Statistics Canada reported on Friday that the December canola crush exceeded 899,000 tonnes for a new monthly record. That beat the November crush by 70,000
tonnes.

CORN futures were lower on Friday, caught up in spillover from soybeans.

Corn export sales were about 1.0 million tonnes as of Jan. 16. That was a little bit above market predictions.

The USDA announced today a private sale of almost 142,430 tonnes of corn to unknown destinations.

Ukraine reported its corn exports have totaled 14.9 million tonnes since July 1.

Agencia Brasil reported Brazil’s 2019/20 ethanol production is to reach 8.7 billion gallons, for a gain of more 500 million gallons over the previous year. Exports are top 423 million gallons.

WHEAT futures were on lower Friday, also due to spillover from soybeans.

Wheat export sales were 696,000 tonnes, according to the USDA. That was very close to the high end of trade predictions.

The USDA’s attaché in Argentina estimated that country’s wheat production to top 19.3 million tonnes this year. That’s more than 300,000 tonnes above the department’s official estimate.

Ukraine said its wheat exports have amounted to 15.6 million tonnes since July 1. Also, the country’s overall grain harvest jumped 7.1 per cent in 2019.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down $1.40 at US$54.19 per barrel.

In the afternoon, the Canadian dollar was trading around US76.10 cents, up from 76.09 cents the previous trading day. The U.S. dollar was C$1.3140.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Mar 20 469.50s -3.60 -0.76%

Canola May 20 478.60s -3.40 -0.71%

Canola Jul 20 484.50s -2.60 -0.53%

Canola Nov 20 490.00s -1.60 -0.33%

Canola Jan 21 495.90s -1.50 -0.30%

 

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 Mar 20 902-0s -7-4 -0.82%

Soybean May 20 915-6s -7-4 -0.81%

Soybean Jul 20 929-4s -7-4 -0.80%

Soybean Aug 20 934-2s -7-4 -0.80%

Soybean Sep 20 934-2s -7-6 -0.82%

 

Soybean Meal Mar 20 298.3s -0.6 -0.20%

Soybean Meal May 20 302.5s -0.7 -0.23%

Soybean Meal Jul 20 306.8s -0.9 -0.29%

 

Soybean Oil Mar 20 32.02s -0.46 -1.42%

Soybean Oil May 20 32.37s -0.45 -1.37%

Soybean Oil Jul 20 32.74s -0.44 -1.33%

 

Corn Mar 20 387-2s -6-4 -1.65%

Corn May 20 392-6s -5-6 -1.44%

Corn Jul 20 397-6s -5-4 -1.36%

Corn Sep 20 395-6s -5-0 -1.25%

Corn Dec 20 398-2s -5-0 -1.24%

 

Oats Mar 20 303-2s -13-2 -4.19%

Oats May 20 298-6s -10-6 -3.47%

Oats Jul 20 289-4s -12-0 -3.98%

Oats Sep 20 269-4s -12-2 -4.35%

Oats Dec 20 264-6s -7-2 -2.67%

 

Wheat Mar 20 573-4s -7-0 -1.21%

Wheat May 20 572-4s -6-4 -1.12%

Wheat Jul 20 573-0s -5-6 -0.99%

Wheat Sep 20 578-2s -5-2 -0.90%

Wheat Dec 20 586-2s -4-6 -0.80%

 

Minneapolis

Spring Wheat Mar 20 547-4s -8-2 -1.48%

Spring Wheat May 20 557-0s -7-4 -1.33%

Spring Wheat Jul 20 565-0s -7-0 -1.22%

Spring Wheat Sep 20 573-0s -7-2 -1.25%

Spring Wheat Dec 20 583-2s -7-0 -1.19%

 

Kansas City

Hard Red Wheat Mar 20 486-0s -6-2 -1.27%

Hard Red Wheat May 20 493-4s -6-2 -1.25%

Hard Red Wheat Jul 20 500-6s -6-0 -1.18%

Hard Red Wheat Sep 20 508-6s -5-6 -1.12%

Hard Red Wheat Dec 20 519-2s -5-2 -1.00%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Feb 20 124.850s +0.175 +0.14%

Live Cattle Apr 20 124.300s +0.125 +0.10%

Live Cattle Jun 20 116.025s -0.300 -0.26%

 

Feeder Cattle Jan 20 141.850s -0.925 -0.65%

Feeder Cattle Mar 20 139.675s -0.850 -0.60%

Feeder Cattle Apr 20 142.500s -0.975 -0.68%

 

Lean Hogs Feb 20 67.225s -1.275 -1.86%

Lean Hogs Apr 20 73.450s -1.900 -2.52%

Lean Hogs May 20 79.975s -1.800 -2.20%

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