Weaker dollar limits canola, soybean losses

The ICE Futures canola platform were weaker at market close following soybeans. However, the weaker Canadian dollar limited losses for the market.

Chicago Board of Trade (CBOT) soybean, oil and meal contracts were weaker also.

Seasonal harvest pressure weighed on the market. It is expected farmer deliveries should slow down soon, however there is concern about the quality of the crop that is coming off the fields.

Canola is still relatively overpriced compared to other oilseeds.

Trading was choppy today, as traders positioned themselves ahead of month end tomorrow.

About 21,992 canola contracts traded, which compares with Monday when 20,923 contracts changed hands. Spreading accounted for 11,886 of the contracts traded.

Yesterday’s crop progress report from the United States Department (USDA) showed that the U.S. soybean harvest is 72 percent done, up 19 percent from last week. However, it is still behind the five-year average. Illinois, Indiana, Kentucky and North Carolina are ahead of their normal pace though.

The USDA has reported a sale of 120,000 tonnes of soybeans to unknown destinations. U.S. soybeans are currently trading at a 25 per cent discount compared to Brazil.

There is more concern about the U.S. China trade war. The U.S. threatened to place more tariffs on China last night if the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping doesn’t go good.

CBOT corn prices finished the day weaker.

The corn harvest in the U.S. is in line with the five-year average. The USDA reported yesterday that it is 63 per cent done yesterday. States in the east were mostly ahead of normal while those in the western Corn Belt were lagging. Harvest progress however could be slowed over the next few days in the eastern Midwest as storms move across the area.

European Union corn imports for the 2018/19 crop year are estimated to be at 5.6 million tonnes, up 14 per cent from year ago levels.

Wheat futures in the U.S. finished the day lower.

Winter wheat seeding in the U.S. increased by just six per cent last week and is now sitting at 78 per cent done, which is behind the five-year average, according to the USDA. Only Indiana and Idaho are slightly ahead of normal. The USDA also said that is emergence at 63 per cent, which is behind the five-year average.

Egypt’s Ministry of Supply announced Monday that the country’s strategic reserves of wheat are enough to cover needs until the beginning of March next year at least.

 

OUTSIDE MARKETS

Light crude oil nearby futures in New York was down 86 cents at US$66.18 per barrel.

In the afternoon, the Canadian dollar was trading around US76.14 cents, down from 76.23 cents the previous trading day. The U.S. dollar was C$1.3133.

 

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 18 481.20s -0.70 -0.15%

Canola Jan 19 488.60s -1.60 -0.33%

Canola Mar 19 495.70s -2.00 -0.40%

Canola May 19 501.80s -2.10 -0.42%

Canola Jul 19 505.80s -2.50 -0.49%

 

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 Nov 18 833-4s -5-4 -0.66%

Soybeans Jan 19 847-0s -5-2 -0.62%

Soybeans Mar 19 860-4s -5-0 -0.58%

Soybeans May 19 874-2s -5-0 -0.57%

Soybeans Jul 19 886-4s -4-6 -0.53%

 

Soybean Meal Dec 18 305.1s -3.1 -1.01%

Soybean Meal Jan 19 307.1s -2.9 -0.94%

Soybean Meal Mar 19 307.9s -2.6 -0.84%

 

Soybean Oil Dec 18 28.00s +0.11 +0.39%

Soybean Oil Jan 19 28.22s +0.11 +0.39%

Soybean Oil Mar 19 28.48s +0.10 +0.35%

 

Corn Dec 18 364-6s -2-0 -0.55%

Corn Mar 19 377-2s -2-0 -0.53%

Corn May 19 385-2s -2-0 -0.52%

Corn Jul 19 391-0s -2-0 -0.51%

Corn Sep 19 393-2s -2-0 -0.51%

 

Oats Dec 18 279-6s -6-6 -2.36%

Oats Mar 19 276-2s -4-4 -1.60%

Oats May 19 278-0s -5-2 -1.85%

Oats Jul 19 279-6s -5-6 -2.01%

Oats Sep 19 277-0s -7-6 -2.72%

 

Wheat Dec 18 499-6s -7-4 -1.48%

Wheat Mar 19 517-4s -8-4 -1.62%

Wheat May 19 530-0s -8-2 -1.53%

Wheat Jul 19 536-4s -8-2 -1.51%

Wheat Sep 19 548-6s -7-4 -1.35%

 

Minneapolis

Spring Wheat Dec 18 571-4s -6-0 -1.04%

Spring Wheat Mar 19 581-6s -4-2 -0.73%

Spring Wheat May 19 590-4s -3-6 -0.63%

Spring Wheat Jul 19 598-4s -3-2 -0.54%

Spring Wheat Sep 19 606-0s -2-4 -0.41%

 

Kansas City

Hard Red Wheat Dec 18 494-6s -6-6 -1.35%

Hard Red Wheat Mar 19 520-4s -7-2 -1.37%

Hard Red Wheat May 19 534-4s -7-2 -1.34%

Hard Red Wheat Jul 19 543-0s -7-6 -1.41%

Hard Red Wheat Sep 19 558-2s -7-2 -1.28%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Oct 18 113.900s -0.400 -0.35%

Live Cattle Dec 18 116.800s -0.450 -0.38%

Live Cattle Feb 19 122.300s -0.500 -0.41%

 

Feeder Cattle Nov 18 152.175s -1.725 -1.12%

Feeder Cattle Jan 19 148.100s -1.725 -1.15%

Feeder Cattle Mar 19 146.575s -1.400 -0.95%

 

Lean Hogs Dec 18 59.000s +0.150 +0.25%

Lean Hogs Feb 19 66.950s +0.050 +0.07%

Lean Hogs Apr 19 71.750s -0.075 -0.10%

 

About the author

Ashley Robinson - MarketsFarm's recent articles

Markets at a glance

explore

Stories from our other publications