By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 6 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Tuesday, as trading resumed following the Terry Fox/Civic Day long weekend.
A Winnipeg-based trader stated speculators were buying canola today and selling oil, which provided support for bids.
As was the Canadian dollar, which was down at 75.26 U.S. cents mid-afternoon Tuesday.
The canola market fared better than the Chicago Board of Trade, which took a beating on Monday from China devaluating its yuan. Bids in Chicago were still down on Tuesday, but not as severe.
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There were 10,469 contracts traded on Tuesday, which compares with Friday when 13,094 contracts changed hands. Spreading accounted for 2,942 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 444.50 up 3.70
Jan 454.10 up 4.00
Mar 464.00 up 3.70
May 469.50 up 2.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Tuesday, as the effects of China devaluating the yuan were still felt.
With that devaluation, China sent the United States markets into a steep decline yesterday, with some markets having incurred their largest losses so far in 2019. China’s move came as its trade war with the U.S. heated up again, following the announcement by U.S. President Donald Trump’s threat to hike tariffs on Chinese imports by 10 per cent on September 1. In response to the yuan falling by more than seven to one to the greenback, the U.S. indicated it will take the matter to the International Monetary Fund.
China also stated it will halt all purchases of U.S. agricultural goods. No indicated was provided as to China’s remaining soybean purchases still in the U.S. awaiting shipment.
In the U.S. Department of Agriculture’s crop progress report issued on Monday, soybeans were unchanged at 54 per cent good to excellent condition. Approximately 72 per cent of soybeans were blooming, 15 points ahead of the previous week, but 15 back of the five-year average. About 37 per cent were setting pods, well behind the average of 63 percent.
The U.S. topsoil moisture conditions nation-wide were nine per cent very short, 28 short, 57 adequate and six per cent surplus. Subsoil moisture conditions were six very short, 23 short, 65 adequate and six surplus.
CORN futures were lower on Tuesday, due to the lower yuan.
Rain forecast for dry areas of the U.S. Corn Belt put pressure on values.
In its crop progress report, the USDA said corn was 57 per cent good to excellent, down one point from the previous week. Corn silking was 78 per cent, 15 points behind the five-average. Corn dough hit 23 per cent, a little over half of where it should be.
UkrAgroConsult raised its estimate of Ukraine’s corn crop to 34.2 million tonnes, up 1.2 million.
WHEAT futures were down on Tuesday, as U.S. wheat remained uncompetitive on the global market.
Less expensive wheat from the European Union and the Black Sea Region has been beating the U.S. at sales. One case in point was Egypt’s latest wheat purchase, with 240,000 tonnes from Russia, 115,000 from Ukraine and 60,000 from Romania, as the U.S. declined to tender.
The USDA report the winter wheat harvest reached 82 per cent completed, up seven points from the previous week, but 10 behind the five-year average. The spring wheat harvest was underway at two per cent, compared to 12 per cent this time last year and with the average at 14 per cent. Spring wheat conditions were unchanged at 73 per cent good to excellent.
The French agriculture ministry increased the country’s soft wheat harvest to 38.2 million tonnes, up by 1.2 million from July’s estimate.
