By Glen Hallick, MarketsFarm
WINNIPEG, July 30 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Tuesday, amid another session of lighter than normal volumes of trade.
For the most part canola has been range bound, with little to influence bids a great deal either way. Along with other commodities, the markets have continued to wait for the United States Department of Agriculture to release its numbers on corn, soybean and prevent plant acres, due August 12. That report will provide a clearer picture as what U.S. farmers have planted this year.
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There were 11,738 contracts traded on Tuesday, which compares with Monday when 9,394 contracts changed hands. Spreading accounted for 6,256 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 448.40 dn 1.00
Jan 456.50 dn 0.60
Mar 463.80 dn 0.50
May 469.20 dn 0.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Tuesday, losing between seven to seven and half cents per bushel.
Trade talks between the United States and China hit another bump with another tweet from U.S. President Donald Trump, who accused China of not buying more U.S. agricultural goods as expected.
Since the G-20 Summit in Japan, China has imported only 1 million tonnes of soybeans, according to the U.S. Department of Agriculture (USDA). However, China has claimed it has import more than what the department has said.
China has begun working with Argentina in developing a soymeal trading program.
The USDA issued its weekly crop progress report yesterday, and soybeans rated 54 per cent good to excellent, unchanged from the previous week. Also, 57 per cent of soybeans were blooming and 21 per cent were setting pods.
The markets have anticipated the U.S. Federal Reserve will announce an interest rate cut on Wednesday, the first cut in 10 years. Should there be a cut, the markets are expected to react positively.
The U.S. Soybean Export Council has targeted India and Ghana as potential customers to help counter the decline of exports to China.
CORN futures were weaker on Tuesday, down five and three-quarters cents to six cents per bushel, after getting caught up in spillover from soybeans.
In the crop progress report, the USDA said corn was 58 per cent good to excellent, up one point from last week. Also, corn was at 58 per cent silking and 13 per cent dough.
The western portion of the U.S. Corn Belt was forecast to receive limited rainfall over the next week, along with cooler temperatures.
Brazil’s safrinha corn harvest was reported as 76 per cent complete.
WHEAT futures were down on Tuesday, with losses of around three per bushel in Kansas City and Minneapolis and five to six cents in Chicago.
U.S. spring wheat came in at 73 per cent good to excellent this week, for a drop of three points from last week, according to the USDA. Approximately 97 per cent of the crop has headed.
The U.S. winter wheat harvest reached the three-quarter point, up from last week’s 69 per cent, and back of the five-year average of 86 per cent complete.
European Union soft wheat exports dropped 22 per cent year-over-over to 762,000 tonnes.
Also in the EU, Agritel has forecast the French wheat crop to be the country’s second largest on record at 39.16 million tonnes. Germany’s wheat crop is expected to rise 18 per cent to 23.80 million tonnes.
With the hot, dry weather Ukraine’s wheat crop will result in more milling quality, as much as 70 per cent, compared the previous estimate of 55 per cent.
Jordan has purchased 59,875 tonnes of hard milling wheat from optional origins with shipment scheduled for October.
Bangladesh bought approximately 100,700 tonnes of wheat from Russia with deliveries beginning in August.
