By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 4 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower Wednesday, due to the continuing general downward pressure on canola and other oilseeds, according to a trader.
For the most part canola has remained range-bound, said the trader, noting there’s nothing on the horizon that could shake up the market. He said it’s unlikely Statistics Canada’s upcoming grain stocks report and its production estimates would provide that kind of jolt.
The Bank of Canada announced this morning it has continued the freeze on interest rates, boosting the Canadian dollar in excess of a half cent. By mid-afternoon Wednesday, the loonie was at 75.63 U.S. cents.
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In Manitoba, the canola harvest was reported as being behind pace with just under 20 per cent of the province’s 3.2 million acres completed. The five-year average is 53 per cent complete.
There were 9,645 contracts traded on Wednesday, which compares with Tuesday when 13,654 contracts changed hands. Spreading accounted for 3,200 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 446.50 dn 1.00
Jan 454.50 dn 1.10
Mar 461.50 dn 1.10
May 467.90 dn 1.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Wednesday, making gains on the United States Department of Agriculture’s (USDA) crop progress report released yesterday.
In the report, for the week ended Sept. 1, soybeans were unchanged at 55 per cent good to excellent condition. Soybeans blooming registered at 96 per cent, up two points from the previous week, and a little behind of the five-year average of 100 per cent. Soybeans setting pods came in at 86 per cent, up seven points from last week, but 10 behind the average.
The USDA’s fats and oils report, also released on Tuesday, stated 5.39 million tonnes of soybeans were crushed in July, up from 4.74 million in June, and slightly more than in July 2018.
It’s expected the CBOT soy complex will remain range-bound at least until the USDA releases its next supply and demand report, scheduled for Sept. 12.
The Brazilian government announced today that the country’s soybean acres for 2020 were projected to increase by 1.1 per cent, for the slowest expansion in 13 years. The country’s soybean farmers are expected produce far excess of 120 million tonnes next year.
Political instability in Argentina will very likely lead to more soybeans planted, as the cost of growing the crop is 30 per cent less than corn, according to a report.
CORN futures were lower on Wednesday, setting new contract lows for a second day.
The USDA reported corn was 58 per cent good to excellent, an increase of a point from last week. Corn dough rose from 71 to 81 per cent, with the five-year average at 93 per cent. Corn dented improved from 27 to 41 per cent, but still below the average of 63 per cent. Corn mature registered for the first time this crop year at six per cent, about half of the average.
Also, the USDA reported in its grain crushing report, issued Tuesday, that 11.451 million tonnes were used for fuel alcohol in July, down by almost 6.5 per cent from the same month last year.
As with soybeans, corn is expected to stay range-bound until the Sept. 12 supply and demand report from the USDA.
WHEAT futures were stronger on Wednesday, getting a bounce from the USDA’s crop progress report and the amount of exports.
The USDA reported the spring wheat harvest reached 55 per cent complete, up from 38 per cent the previous week, but behind the five-year average of 78 per cent. Spring wheat was 67 per cent good to excellent, a drop of two points from the previous week.
Drought has taken a toll on Australia’s wheat crop for a third consecutive year. Trade expectations have projected a 10 per cent drop in production in 2019.
