By Glen Hallick, MarketsFarm
WINNIPEG, July 15 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Wednesday, due to a stronger Canadian dollar and poor demand.
By mid-afternoon the Canadian dollar was at 74.03 U.S. cents, compared to Tuesday’s close of 73.44. An analyst said that’s largely due to weakness in the United States Dollar Index rather than any strength in the loonie.
Another analyst commented the demand for canola was currently weak from exporters and crushers.
Support for canola came from Chicago Board of Trade soyoil gaining about a third of a cent, as well as higher European rapeseed and Malaysian palm oil.
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The weekly Manitoba crop report stated crops throughout the province were in average to good condition.
There were 14,940 contracts traded on Wednesday, which compares with Tuesday when 10,895 contracts changed hands. Spreading accounted for 5,952 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 478.00 dn 1.20
Jan 485.30 dn 1.40
Mar 491.00 dn 1.00
May 495.10 dn 0.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Wednesday, largely due to a decline the United States Dollar Index.
The index saw the U.S. dollar slip by 0.16 per cent as the animosity continued between the U.S. and China. President Donald Trump announced today that the U.S. will end Hong Kong’s special trade status and will essentially treat it as country. China stated the move was meddling in their internal affairs. Also, China and the U.S. were at loggerheads over what comprises international waters in the South China Sea.
Despite the turmoil, the U.S. Department of Agriculture (USDA) announced a private sale of 389,000 tonnes of soybeans to China. Delivery was scheduled for the 2020/21 marketing year.
The National Oilseed Processors Association (NOPA) reported nearly 167.3 million bushels of soybeans were crushed in June. That’s above trade estimates of 162 million.
The National Oceanic and Atmospheric Administration (NOAA) forecast rain for the U.S. Central and Southern Plains in the coming days. The precipitation will help alleviate some dryness in the regions.
CORN futures were steady on Wednesday, as weather forecasts countered any benefit from the sale to China.
The USDA reported a private sale of 132,000 tonnes of corn to China. Delivery is to be during the coming marketing year.
Market forecasts peg old crop corn bookings at 600,000 to 1.3 million tonnes ahead of tomorrow’s export sales report from the USDA. New crop sales are projected to be 900,000 to 1.6 million tonnes.
Ukraine reported its corn crop will increase from 35.4 million tonnes to 36.6 million. Exports were forecast increase from 28.0 million to 29.0 million tonnes.
WHEAT futures were stronger on Wednesday, benefitting from weakness in the U.S. greenback and dry growing conditions in Europe and Argentina.
The Rosario Grain Exchange cut its projections for wheat production in Argentina from 698 million bushels to 661 million. Presently 87 per cent of the crop has been planted.
Projections for export sales put U.S. wheat at 250,000 to 650,000 tonnes.
