By Ashley Robinson, Commodity News Service Canada
Winnipeg, Nov. 2 (CNS Canada) – The ICE Futures canola platform were weaker at market close, seeing a correction following yesterday’s large gains for the oilseeds markets.
Chicago Board of Trade (CBOT) soybean contracts were up while oil and meal contracts were down. Yesterday saw oilseed markets jump in value after United States President Donald Trump tweeted that he talked with China about trade. Markets saw a correction today and soybeans are currently overpriced compared to their crush value according to a trader.
Read Also
North American grain/oilseed review: Canola falls Friday
ICE Futures canola market was weaker on Friday, settling at its weakest levels in two weeks. Speculative selling was a…
Farmer deliveries for canola were big once again last week. According to the Canadian Grain Commission data there was almost 500,000 tonnes of canola delivered for the week ended Oct. 28, this was way above average for this time of year.
The Canadian dollar was weaker at canola market close, which limited losses for canola contracts.
About 22,470 canola contracts traded, which compares with Thursday when 27,864 contracts changed hands. Spreading accounted for 14,490 of the contracts traded.
The U.S. Department of Agriculture (USDA) released its long-term agricultural projections today. U.S. soybean acres are expected to fall next year to 82.5 million acres from 89.1 million acres this year. Current acreage won’t be reached again during the next 10 years.
The USDA reported yesterday that processors crushed 169.3 million bushels of soybeans in September. This was two million less than expected based on data previously released by the National Oilseed Processors Association. The total was down slightly from August but still a record for the month.
CBOT corn prices closed in the green Friday.
Corn acres are also expected to rise next year in the U.S., according to the USDA. Next year’s acreage will rise to 90.2 million acres from 89.1 million acres this year. Acreage will increase the year after and is expected to be above 90 million acres for most of the next 10 years.
The Buenos Aires Grain Exchange has estimated that Argentina’s corn planting 36 per cent done, having only advanced two per cent last week.
Wheat futures in the U.S. finished the day mostly higher.
The USDA is predicting wheat acreage to grow in the next 10 years. Acreage will increase to 51.0 million acres next year, from 47.8 million acres this year.
New net bookings last week for the U.S. totaled 21.4 million bushels, which was the most for September. Japan bought 4.4 million bushels, the most of all buyers. Total sales and shipments have reached 62 per cent of USDA’s forecast for the 2018 crop so far, which is ahead of average.
There is news that Russia could suspend exports at two key regions due to quality concerns.
