North American Grains and Oilseeds Review: Canola drops down

By Ashley Robinson, Commodity News Service Canada
Winnipeg, Dec. 11 (CNS Canada) – The ICE Futures canola platform closed weaker, retreating from yesterday’s rally.
Chicago Board of Trade (CBOT) soybean, oil and meal contracts all finished the day stronger. Soybeans found support from reports that China and the United States talked over the phone about trade. U.S. President Donald Trump also tweeted saying there had been “very productive conversation going on with China,” and people should “watch for some important announcements.”
The United States Department of Agriculture (USDA) released its latest supply and demand report today and it was deemed mostly uneventful for trade. Brazil’s soybean production estimate was raised in the report. The USDA pegged Brazil’s soybean crop at a record 122 million tonnes, which is up from the November estimate by 1.5 million tonnes.

North American Grain/Oilseed Review: Canola rises, down day for grains

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Forecasts in Brazil are calling for hotter and drier weather. The soybean crop is off to a good start and this change in weather shouldn’t affect it much. This coupled with the USDA production estimate weighed on canola contracts.
About 27,727 canola contracts traded, which compares with Monday when 32,757 contracts changed hands. Spreading accounted for 20,894 of the contracts traded.
The USDA raised its global soybean ending stocks forecast for 2018/19 to 115.33 million tonnes, up from an earlier estimate of 112.08 million.
U.S. soybean ending stocks were left unchanged in the USDA report at 26.0 million tonnes, which is more than double last year’s carryout of 11.9 million tonnes.
CBOT corn prices finished the day stronger.

The USDA raised world corn ending stocks to 308.80 million tonnes, up from 307.51 million last month. Production estimates for Brazil, Argentina and the U.S. were all left unchanged.
China is set to potentially triple its current ethanol production capacity by 2020. Imports from the U.S. and/or Brazil are expected to be needed to meet blending requirements.
Wheat futures in the U.S. finished the day mixed.
The USDA also raised world wheat ending stocks for 2018/19 to 268.81 million tonnes, which is up from a previous estimate of 266.71 million. However, the carryout still comes in below last year’s 279.94 million tonnes.