By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 9 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished higher on Monday after trading lower for most of the session.
Support came from gains in the Chicago soy complex along with increases in the front months of European rapeseed. Meanwhile, Malaysian palm oil was steady to higher.
A trader said the earlier declines were likely the result of profit-taking. He noted there was also positioning ahead of tomorrow’s supply and demand estimates from the United States Department of Agriculture.
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At mid-afternoon, the Canadian dollar was stronger at 77.01 U.S. cents, compared to Friday’s close of 76.69.
There were 19,201 contracts traded on Monday, which compares with Friday when 22,912 contracts changed hands. Spreading accounted for 11,806 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 548.50 up 2.60
Mar 552.80 up 2.60
May 553.50 up 2.60
Jul 552.20 up 2.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Monday, ahead of tomorrow’s supply and demand report from the United States Department of Agriculture (USDA).
The markets widely expect soybean yields and production numbers to be lower in the World Agriculture Supply and Demand Estimates (WASDE). Market expectations place soybean yields at 51.6 bushels per acres (BPA), down from the USDA’s October estimate of 51.9. Production is forecast to be 4.25 billion bushels with a carryout of 243.9 million bushels. The WASDE, along with crop production report, are to be released at 11 am CST.
The USDA announced a private sale of 123,000 tonnes of soybeans to unknown destinations. Delivery is to be during the current marketing year.
The department reported soybean export inspections of nearly 2.5 million tonnes as of Nov. 5. That makes for eight consecutive weeks of inspections being 2 million tonnes or greater.
The USDA releases its weekly crop progress report later this afternoon. Industry forecasts are calling the soybean harvest to be 93 per cent complete, up six points from the previous week.
All of the markets were on the upswing on news of a potential COVID-19 vaccine being developed by Pfizer. The company said that early test results were very positive, with more testing to come. It’s highly unlikely the vaccine would be ready before the end of 2020.
SAFRAS reported the planting of soybeans in Brazil is just over 54 per cent complete, which is two points ahead of the average pace.
CORN futures were slightly higher on Monday, also due the coming supply and demand estimates.
As with soybeans, corn yields and production are widely expected to be reduced in tomorrow’s WASDE. The average prediction is for yields to decline from the 178.4 BPA estimated by the USDA in October to 177.7. The corn carryover is expected to be cut by about 120 million bushels, to almost 2.05 billion.
Export inspections of U.S. corn came to 690,079 tonnes, with China as the top destinations in taking 29 per cent of the shipments.
Trade predictions put the corn harvest at 92 per cent complete, up 10 points from the previous week.
WHEAT futures were lower on Monday, with the markets expecting no change for U.S. wheat ending stocks, remaining at 883.0 million bushels in tomorrow’s WASDE.
U.S. wheat export inspections amounted to 304,239 tonnes.
Market predictions slot the planting of winter wheat at 93 per cent finished, up four points from the previous week. Crop conditions are expected to improve to 45 per cent good to excellent, up two from the previous week.
