By Ashley Robinson, Commodity News Service Canada
WINNIPEG, Sep. 17 (CNS) – The ICE Futures canola platform
finished lower Monday, following the lead of Chicago soybeans.
There are thoughts that canola is over-priced compared to
soybeans, according to a Winnipeg-based trader. There isn’t a
firm answer why it is priced so high but it could be due to the
wet, cold weather on the Prairies, demand or speculators playing
long canola spreads and short soy spreads.
The latest crop report from Alberta, released on Friday,
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halted in parts of the province after snow fell during the week.
The Canadian dollar was stronger which weighed on canola.
Statistics Canada will be releasing its updated production
estimates using satellite imagery on Wednesday.
About 7,774 canola contracts traded, which compares with
Friday when 7,566 contracts changed hands. Spreading accounted
for 3,298 of the contracts traded.
In the United States soybean futures on the Chicago Board of Trade
ended slightly lower Monday, soyoil and meal contracts were also
down.
According to reports, U.S. President Donald Trump is planning
to impose a 10 per cent tariff on a list of US$200 billion in
Chinese goods as soon as today or tomorrow. This would escalate
the tensions between the two countries.
The latest tariff news comes just days after the U.S. had
invited the Chinese for a new round of trade talks. However
those talks are now in doubt.
The corn market finished the day lower.
Farmers in the U.S. Midwest experienced dry conditions over
the last week which allowed for an early harvest, but that could
change. The area may experience some after-effects of Hurricane
Florence moving through the eastern parts of the Corn Belt which
will bring above average precipitation for the rest of the week.
Wheat futures in the U.S. finished the day mixed. The
market in Chicago was weaker, while Minneapolis was higher and
Kansas City bounced around in trade, finishing the day lower.
U.S. wheat exports could see a boost due to the latest
purchase of 23.1 million bushels of wheat by Saudi Arabia.
Canada is excluded from this purchase due to the ongoing
tensions between the two countries.
The Alberta crop report, released on Friday, pegged the
spring wheat harvest at 29 per cent complete.
Cold temperatures in Australia over the weekend could
bring some support for the wheat markets this week. Parts of
Western Australia dipped to 0 C with frost reported.
