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Weaker dollar boosts canola

Winnipeg (CNS Canada) – ICE Futures Canada canola contracts were stronger on Thursday, as weakness in the Canadian dollar helped the market recover from earlier declines.

The Canadian dollar lost more than half a cent relative to its United States counterpart, boosting crush margins and making exports more attractive to international buyers.

Ideas that recent losses were looking overdone also contributed to the rebound higher, according to participants.

However, relatively favourable Prairie crop conditions and continued weakness in Chicago Board of Trade soybeans put some pressure on canola.

Uncertainty over world trade was also overhanging the grains and oilseeds, with the U.S. possibly set to impose tariffs on China as early as Friday.

About 27,830 canola contracts traded, which compares with Wednesday when 34,181 contracts changed hands. Spreading accounted for 15,524 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were lower on Thursday, as concerns over looming U.S tariffs on Chinese goods and the resulting likelihood of reciprocal tariffs from China weighed on values.

Weekly U.S. soybean export sales came in at about 500,000 tonnes for old crop and nearly 300,000 tonnes new crop, with China notably absent from the list of buyers.

However, the trade war concerns have been an issue for some time now and may be priced into the market.

CORN was also lower, with chart-based speculative selling contributing to the declines as prices neared major technical support.

Midwestern weather conditions are generally favourable for crop development.

Weekly U.S. corn export sales came in above expectations at about 940,000 tonnes old crop and 240,000 tonnes new crop.

WHEAT futures were all lower, with strength in the U.S. dollar index behind some of the weakness as the rising currency should cut into export demand.

Seasonal harvest pressure also weighed on prices.

However, persistent production concerns in a number of wheat growing regions of the world, including Australia and Russia, provided some underlying support.

Weekly U.S. wheat export sales of about 300,000 tonnes were in line with market expectations.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up 25 cents at US$66.89 per barrel.

In the afternoon, the Canadian dollar was trading around US76.34 cents, down from 77.07 cents the previous trading day. The U.S. dollar was C$1.3099.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Jul 18 517.30s +2.80 +0.54%

Canola Nov 18 507.70s +1.80 +0.36%

Canola Jan 19 513.60s +1.90 +0.37%

Canola Mar 19 517.40s +1.60 +0.31%

Canola May 19 519.90s +1.70 +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

Soybeans Jul 18 927-2s -8-6 -0.93%

Soybeans Aug 18 933-2s -8-4 -0.90%

Soybeans Sep 18 939-6s -8-4 -0.90%

Soybeans Nov 18 950-0s -8-6 -0.91%

Soybeans Jan 19 958-2s -8-6 -0.90%

 

Soybean Meal Jul 18 343.2s -4.5 -1.29%

Soybean Meal Aug 18 345.2s -4.3 -1.23%

Soybean Meal Sep 18 346.9s -4.3 -1.22%

 

Soybean Oil Jul 18 30.14s +0.06 +0.20%

Soybean Oil Aug 18 30.26s +0.05 +0.17%

Soybean Oil Sep 18 30.43s +0.07 +0.23%

 

Corn Jul 18 363-0s -13-0 -3.46%

Corn Sep 18 372-6s -12-6 -3.31%

Corn Dec 18 384-4s -12-4 -3.15%

Corn Mar 19 394-0s -12-2 -3.02%

Corn May 19 400-4s -11-6 -2.85%

 

Oats Jul 18 230-0s -3-0 -1.29%

Oats Sep 18 235-0s -2-4 -1.05%

Oats Dec 18 238-6s -5-0 -2.05%

Oats Mar 19 244-2s -4-4 -1.81%

Oats May 19 247-0s -4-4 -1.79%

 

Wheat Jul 18 501-4s -15-0 -2.90%

Wheat Sep 18 517-2s -15-4 -2.91%

Wheat Dec 18 540-0s -16-0 -2.88%

Wheat Mar 19 560-0s -15-0 -2.61%

Wheat May 19 571-6s -14-4 -2.47%

 

Minneapolis

Spring Wheat Jul 18 577-4s -7-0 -1.20%

Spring Wheat Sep 18 589-6s -7-4 -1.26%

Spring Wheat Dec 18 603-6s -7-4 -1.23%

Spring Wheat Mar 19 618-2s -7-6 -1.24%

Spring Wheat May 19 627-4s -6-4 -1.03%

 

Kansas City

Hard Red Wheat Jul 18 522-2s -16-6 -3.11%

Hard Red Wheat Sep 18 538-2s -16-6 -3.02%

Hard Red Wheat Dec 18 562-0s -16-0 -2.77%

Hard Red Wheat Mar 19 578-0s -15-4 -2.61%

Hard Red Wheat May 19 588-0s -15-2 -2.53%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Jun 18 106.250s -1.675 -1.55%

Live Cattle Aug 18 101.875s -2.025 -1.95%

Live Cattle Oct 18 104.800s -2.125 -1.99%

 

Feeder Cattle Aug 18 143.675s -1.975 -1.36%

Feeder Cattle Sep 18 144.800s -1.875 -1.28%

Feeder Cattle Oct 18 144.775s -1.675 -1.14%

 

Lean Hogs Jun 18 81.175s +0.175 +0.22%

Lean Hogs Jul 18 81.625s -1.150 -1.39%

Lean Hogs Aug 18 78.600s -1.050 -1.32%

 

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By Phil Franz-Warkentin Commodity News Service Canada's recent articles

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