WINNIPEG, Dec. 17 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished higher on Tuesday, following pricing trends set earlier in the week.
One Winnipeg-based trader said although soybeans are providing the most support to canola prices, technical short covering and high trade volumes are also “pushing positions forward.”
End-of-year profit taking accounted for some of the large trade volume.
Strong crush margins also favoured canola prices. According to the Canadian Oilseed Processors Association, the Canola Board Margin Index is over $118 for the January contract on Dec. 16.
Read Also
ICE Midday: Canola tumbles to start week
Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange opened the week’s trading with downward momentum, largely due…
The Canadian dollar was steady at around 76 U.S. cents at midday, preventing further gains for canola values.
The Canadian dollar was stronger to start the week. At 76.2 U.S. cents, the dollar kept a lid on gains for canola.
On Tuesday, 52,996 contracts were traded, which compares with Monday when 41,244 contracts changed hands. Spreading accounted for 48,760 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Monday, still riding the coattails of the trade agreement between the United States and China that was announced late last week.
White House advisor Larry Kudlow has said phase one of the trade deal has been “absolutely completed,” though specifics of the deal remain few and far between. The deal will reportedly be signed by early January. Kudlow also said U.S. exports to China would double, and negotiations for phase two of the trade deal would begin “pretty soon.”
Soybean export demand remains strong. For the marketing year, soybean exports are at 18.63 million tonnes, which is well above last year’s pace, according to the U.S. Department of Agriculture (USDA).
Brazil and China are also negotiating conditions for Brazilian soybeans to be exported to China.
CORN futures finished slightly higher, on reports of weak export demand on the year. For the marketing year, corn exports have totaled 7.2 million tonnes. That’s almost 10 million tonnes lower than at the same time in 2018.
However, corn exports have picked up recently. Last week, corn exports totaled 686,000 tonnes. That’s 40 per cent higher than the previous week.
The National Corn Yield Contest announced that the highest corn yield was grown on a Virginian farm, at 616.195 bushels per acre.
WHEAT futures were stronger on Tuesday. Last week, weekly export sales were higher than the week prior, at around 506,000 tonnes. Of the exported wheat, Kansas City Hard Red Wheat accounted for 43 per cent, or 217,614 tonnes. Hard Red Spring Wheat totaled approximately 25 per cent of the total.
Accumulated shipments for the marketing year are around 14 per cent ahead of last year’s pace, totaling 13.5 million tonnes.
END
