By Ashley Robinson, Commodity News Service Canada
WINNIPEG, Sep. 18 (CNS) – The ICE Futures canola platform
continued its downward slide Tuesday, as trade war tensions
between the United States and China spilled over.
Soybean contracts at the Chicago Board Trade hit new
contract lows, dragging canola down with it. U.S. President
Donald Trump placed new tariffs yesterday on US$200 billion on
Chinese goods, China fired back Tuesday morning by placing US$60
billion worth on U.S. goods.
Cold and wet weather conditions are still affecting harvest
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The Manitoba canola crop is 85 per cent harvested,
according to yesterday’s provincial crop report. Harvest
progress was halted in parts of the province last week due to
cold and wet weather.
Statistics Canada will be releasing its updated production
estimates using satellite imagery tomorrow.
About 20,273 canola contracts traded, which compares with
Monday when 7,774 contracts changed hands. Spreading accounted
for 8,640 of the contracts traded.
In the U.S. CBOT soybean futures ended lower Tuesday, hitting
new contract lows. Soyoil and meal contracts were also down.
Trump imposed new tariffs on a list of $200 billion in Chinese
goods on Monday. The new tariffs come into effect on Sep. 24 and
will start at 10 per cent, before rising to 25 per cent by the end
of the year. China fired back Tuesday morning by announcing it would
impose tariffs on $60 billion worth of U.S. goods. The latest trade
war developments weighed on the oilseeds market.
The weekly crop progress report from the U.S. Department of
Agriculture (USDA) on Monday pegged the U.S. soybean harvest at
six per cent complete, which is ahead of the five-year average
of three per cent.
The corn market finished the day lower.
The USDA put the U.S. corn harvest at nine per cent
complete in its crop progress report. That is ahead of the five-
year average of six per cent.
The early harvest progress could come to a halt though in
parts of the Corn Belt this week due to wet weather in the
forecast. A storm which moved through the upper Mississippi
River Valley on Tuesday could see wet conditions plague the area
for the next few weeks.
Wheat futures in the U.S. finished the day higher.
U.S. winter wheat seeding is 13 per cent complete,
according to the USDA’s crop report. The spring wheat harvest is
97 per cent done.
In Manitoba, the spring wheat harvest is 95 per cent
complete, according to Monday’s provincial crop report.
Egypt announced another wheat tender for shipment from
Nov. 1 to 10. Last week Egypt bought 235,000 tonnes of Russian
wheat. Jordan and Ethiopia also have tenders out for wheat this
week.
