By Glen Hallick, MarketsFarm
WINNIPEG, April 25 (MarketsFarm) – ICE Futures canola contracts were stronger on Thursday, getting support from a number of factors in trading that had a good deal of volume.
One of those factors was spillover from soybeans on the Chicago Board of Trade, which were up four U.S. cents on Thursday. Another was a bounce from the Statistics Canada acreage report that was released yesterday.
Also, the Canadian dollar provided support. The loonie has moved very little and was at 74.13 U.S. cents at midafternoon on Thursday.
There were 35,492 contracts traded on Thursday, which compares with Wednesday when 36,896 contracts changed hands.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, correcting from Wednesday’s losses.
High-level trade talks between the United States and China will resume on April 30, with further negotiations in Washington on May 8.
In export data from the U.S. Department of Agriculture (USDA), China imported about 1.36 million tonnes of soybeans in March. The amount was approximately double compared to imports from the U.S. in February.
In the USDA’s weekly sales report, more than 651,000 tonnes of soybeans were exported for the week ended April 18. About 65 per cent was old crop.
Still looming in the background has been a large supply of soybeans on the global market, compounded by a huge South American harvest and a decline in demand from China. African swine fever has cut China’s demand by 17 per cent so far this year.
CORN futures were up slightly on Thursday, with some spillover from soybeans.
The USDA reported weekly sales were almost 780,000 tonnes of old crop corn and 3,000 tonnes of new crop corn.
The markets continue to wait for the anticipated rally from planting. Farmers in the U.S. are widely expected to plant less corn this year, switching to soybeans.
WHEAT futures were mixed on Thursday, with gains in Minneapolis and Chicago and steady at Kansas City.
Although the U.S. has been experiencing difficulties in a highly competitive global wheat market, sales improved last week. The USDA reported that more than 651,000 tonnes of wheat were sold, of which about 65 per cent was old crop.
The International Grains Council has projected global wheat production for the 2019/20 crop year to rise to 762 million tonnes. A larger wheat crop in Russia is expected.
Futures Prices as of April 25, 2019
Prices are in Canadian dollars per metric ton