By Marlo Glass, MarketsFarm
WINNIPEG, Dec. 16 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished higher on Monday, following pricing trends set last week.
The Canadian dollar was stronger to start the week. At 76.2 U.S. cents, the dollar kept a lid on gains for canola.
Canola values were supported by higher prices for Malaysian palm oil and soybeans on the Chicago Board of Trade. Malaysian palm oil exports have been lower, but imports from India expect to be stronger in the new year.
Read Also
North American Grain/Oilseed Review: Canola, CBOT grains down
Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange started the week lower. Despite easing away from heavier…
One Winnipeg-based trader said, historically, gains in canola lag behind that of the soybean market, as traders go short on canola and long on soybeans.
On Monday, 41,244 contracts were traded, which compares with Friday when 40,615 contracts changed hands. Spreading accounted for 32,786 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Monday, following announcements of a trade agreement between the United States and China.
The deal included the U.S. reducing tariff rates on US$120 billion of Chinese imports, while maintaining a 25 per cent tariff on about US$250 billion worth of Chinese goods. Beyond that, details of the deal are few and far between. The deal has not officially been signed yet.
The National Oilseed Processors Association said that 164.9 million bushels of soybeans were crushed in November. That’s 10 million bushels lower than the prior month. The five-year monthly average for soybean crushing is 161.7 million bushels.
According to the United States Department of Agriculture (USDA), soybean exports for last week totalled 1.259 million tonnes. That’s lower than the week prior, but 28 per cent higher than the same week in 2018.
CORN futures finished slightly higher, on reports of strengthening export volumes. Last week, corn exports totaled 686,000 tonnes. That’s 40 per cent higher than the previous week, but 22 per cent lower than the same week last year.
Argentina’s new leader, President Alberto Fernandez, has increased export taxes on Argentine corn, wheat, and soybeans. Argentina is the world’s third-largest corn and soybean exporter. On Dec. 14, taxes on soybeans, soyoil, and soymeal increased from 25 per cent to 30 per cent. Taxes on corn and wheat increased from seven per cent to 12 per cent. Some growers have said production and employment will be negatively affected by the new tariffs.
WHEAT futures were stronger on Monday. Export sales were higher last week, at around 506,000 tonnes. Accumulated shipments for the marketing year are around 14 per cent ahead of last year’s pace, totaling 13.5 million tonnes.
Dry weather in Argentina, Australia, and the southern U.S. have caused concern for wheat production, which supported prices.
