By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 28 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Monday, in choppy trading.
A trader commented there were a variety of factors that influenced the market today, including uncertainty over canola yields on the Prairies, uncertainty regarding crops in the United States, severe dryness in Brazil, and the belief that China is winding down its U.S. purchase spree.
Although Chicago soyoil was stronger today, the drop in soybeans and soymeal weighed on values. As did European rapeseed, but there were gains in Malaysian palm oil.
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At mid-afternoon, the Canadian dollar was slightly higher at 74.80 U.S. cents, compared to Friday’s close of 74.65.
There were 22,770 contracts traded on Monday, which compares with Friday when 32,054 contracts changed hands. Spreading accounted for 16,880 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 514.30 dn 4.00
Jan 521.50 dn 4.30
Mar 528.10 dn 4.20
May 531.90 dn 3.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Monday, due to favourable harvest conditions.
The United States Department of Agriculture (USDA) reported a private sale of 218,300 tonnes of soybeans to unknown destinations. Delivery is to be during the current marketing year.
The USDA reported that export inspections of soybeans were 1.21 million tonnes, down from 1.31 million the previous week.
Market expectations are for the weekly crop progress report to put the soybean harvest between 14 to 23 per cent complete.
Grain inspectors in Argentina went on a 24-hour strike following a breakdown in negotiations with the private port owners. The short strike was expected to create some turmoil in soymeal and feed shipments.
Dryness conditions in Brazil and Argentina could affect the planting of crops. No significant rainfall is forecast for either country during the next 10 days.
CORN futures were slightly higher on Monday, as the markets believe farmers are holding back their corn in hopes of a price rally.
The USDA said there were two private sales of corn today, one for 110,800 tonnes to Japan and 207,140 tonnes to unknown destinations. Delivery for both is to be made during the 2020/21 marketing year.
Also, the USDA said the cattle placement in feedlots increased by 2.06 million head during August, up nine per cent from August 2019.
Trade predictions slate the corn harvest to be 13 to 21 per cent finished.
COCERAL lowered its estimate of the 2020 European Union plus the United Kingdom corn crop by 2.8 per cent at 62.8 million tonnes, due to dry conditions during the growing period.
WHEAT futures were mixed on Monday, with small losses for Minneapolis, while Chicago and Kansas City had gains.
Export inspections of U.S. wheat were 563,000 tonnes.
The markets believe the planting of winter wheat will reach 32 to 39 per cent done.
COCERAL kept its estimate of EU and UK soft wheat production for 2020 at 129.2 million tonnes.
Despite dry conditions, Russian farmers have planted about 60 per cent of their winter wheat. Rains are in great need over the next few weeks to help establish the crop.
