By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 3 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were steady to lower on Tuesday, as bids wobbled up and down, according to a trader.
He commented there is nothing to break canola, and other oilseeds, from being range-bound.
While rain over the Labour Day long weekend slowed the harvest, frost has yet to strike on the Prairies. Nighttime lows this week will remain in the single digits, with Thursday being the coolest night. Daytime highs will be in the low to mid 20s Celsius. Also, there will be rain across parts of the Prairies, with the northern growing areas likely to receive more precipitation than the southern parts.
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There were 13,654 contracts traded on Tuesday, which compares with Friday when 10,978 contracts changed hands. Spreading accounted for 3,696 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 447.50 dn 0.50
Jan 455.60 dn 0.50
Mar 462.60 dn 0.60
May 469.10 dn 0.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were steady on Tuesday, as the funds were unwilling to expand their short position.
The United States/China trade war saw more tariffs kick-in over recent days. China’s top trade negotiator, Vice-Premier Liu He, told a pair of U.S. Senators that his country doesn’t want a trade war, adding it’s bad for the global economy. No date has been announced for the resumption of negotiations.
The U.S. Department of Agriculture (USDA) reported soybean exports of 1.281 million tonnes, as of August 29, of which nearly 780,000 tonnes were destined for China.
Ahead of the USDA’s crop progress report trade expectations are for the soybean crop to be 56 per cent good to excellent condition. That would be down one point from the previous week and below the five-year average of 67 per cent. The report is scheduled to be released at 3 pm Central.
Soybean and Corn Advisor’s Dr. Michael Cordonnier kept his estimate of U.S. soybean yields at 46 bushels per acre.
Brazil’s soybean exports amounted to 5.328 million tonnes for August, down by more than 34 per cent from this time last year, according to the country’s trade ministry.
CORN futures were weaker on Tuesday, as demand has been weakening ahead of the U.S. harvest.
Hurricane Dorian is expected to hit Florida today and make its way up the U.S. East Coast. Presently at Category 3, Dorian could damage corn crops in its path.
Market predictions have called for corn conditions to be 58 per cent good to excellent, up a point from last week, but behind the average of 69 per cent.
The USDA’s weekly export inspections included 355,400 tonnes of corn shipped as of August 29. That’s down 25 per cent from this time last year.
Cordonnier left his U.S. corn yield estimate at 162 bushels per acre.
Brazil’s corn exports of 7.653 million tonnes in August, were more than double to exports in August 2018.
WHEAT futures were lower on Tuesday, as the U.S. dollar increased in value, making U.S. wheat less competitive.
Trade expectations for spring wheat to be 69 per cent good to excellent, the same as last week. That would be above the average of 62 per cent. The spring wheat harvest was predicted to be 59 per cent complete, up from 38 per cent last week. However, the harvest is almost 20 points back of the five-year average.
The USDA stated that about 526,000 tonnes of wheat was shipped during the week ended August 29, which was over 28 per cent that time last year.
