By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 22 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished slightly higher on Wednesday, regaining some of the values lost yesterday.
Support came from improved Chicago soyoil prices, as well as from stronger European rapeseed.
However, lower Malaysian palm oil prices and the South American soybean harvest, which is just underway, weighed on values.
The extradition hearing for Huawei executive Meng Wanzhou continues in a Vancouver courtroom. The hearing has been highlighting the strained relations between Canada and China.
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By mid-afternoon Wednesday, the Canadian dollar was up by almost a half cent to 76.06 U.S. cents.
There were 13,014 contracts traded on Wednesday, which compares with Tuesday when 11,450 contracts changed hands. Spreading accounted for 9,526 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Mar 477.90 up 1.10
May 486.80 up 1.20
Jul 491.40 up 1.40
Nov 495.00 up 1.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, drifting while waiting for China to ramp up its purchases.
At the World Economic Forum in Davos, Chinese Vice-Premier Han Zheng reassured China’s export partners that the Phase One trade deal with the United States wouldn’t affect its purchases from them. However, there were reports that Chinese importers were recently ordered to prioritize U.S. purchases.
In another report, there was a forecast from Progressive Ag Marketing that projected CBOT soybean prices to hit US$10.75 per bushel by August 1. Yet another report said China will begin purchasing large amounts of U.S. soybeans come February.
Argentine soybean processor Vicentin stopped its crushing operations as the financially-troubled company continues to re-organize.
There have been reports stating that 30,000 tonnes of Malaysian palm oil are waiting to be unloaded in Indian ports. India banned palm oil imports from Malaysia for criticizing India’s new citizenship law. It’s widely believed the legislation will discriminate against Muslims.
In international purchases, Algeria issued a tender for 30,000 tonnes of soymeal.
CORN futures were steady to higher on Wednesday, also looking for direction.
With the Martin Luther King Jr. holiday, the weekly ethanol production report from the U.S. Energy Information Administration has been delayed to Thursday.
The federal Liberal government in Canada said it will introduce legislation to ratify the U.S.-Mexico-Agreement on Jan. 29. However, the opposition Conservatives said on Wednesday that they want to study the trade pact before voting on it. Canada will be the last of the trio to ratify the agreement, which replaces NAFTA.
In international corn purchases, Algeria issued a tender for 20,000 tonnes and South Korea issued two tenders for approximately 340,400 tonnes in total.
WHEAT futures were lower on Wednesday, as U.S. exports have struggled.
In international purchases, Algeria bought 400,000 tonnes of optional origin wheat, and South Korea acquired 200,000 tonnes of soft wheat from Russia.
