By Ashley Robinson, Commodity News Service Canada
Winnipeg, Dec. 27 (CNS Canada) – The ICE Futures canola contacts finished the day mixed, with most contracts stronger. The canola market spent most of the trading session playing catch-up to the soybean market following the two-day holiday break.
Chicago Board of Trade (CBOT) soybean contracts finished the day mostly weaker, soyoil contracts were also down and meal contracts were stronger. United States markets were open Boxing Day and soybean contracts suffered double digit losses during the trading session.
According to a Winnipeg-based trader there isn’t any real direction for the oilseed markets currently. The canola market could see year end money “flushing out” over the next few days.
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The oilseed market undertones are currently neutral to bearish and are not attracting a lot of buying interest, according to participants.
About 22,246 canola contracts traded, which compares with Monday when 10,663 contracts changed hands. Spreading accounted for 21,162 of the contracts traded.
U.S. Department of Agriculture (USDA) soybean inspection numbers released yesterday were disappointing to traders, coming in at only 651,181 tonnes.
A U. S. trade team is set to travel to Beijing during the second week of January to hold trade talks with Chinese officials. There have been consultations held over the phone between the two countries regarding trade, these will continue until the face-to-face meetings.
Farmers in Brazil are concerned hot, dry weather this month could impact soybean yields. However parts of the country are receiving moisture this week, which could help crops. The country is predicted to harvest a record soybean crop this year.
CBOT corn prices finished the day in the green. Corn contracts had also dropped in value yesterday.
USDA corn inspections yesterday were at 996,098 tonnes, which was above pre-report estimates.
The European Commission has raised its estimate for 2018/2019 corn production in the European Union to 67.5 million tonnes, up 4.6 million tonnes from its previous estimate. Corn imports were left unchanged at 18.5 million tonnes.
Ukrainian corn exports dropped by more than 25 per cent last week to 395,000 tonnes.
Wheat futures in the U.S. finished the day weaker. Wheat futures were also down yesterday.
USDA wheat inspections released yesterday fell right in the middle of pre-report estimates at 543,126 tonnes.
China sold 5,266 tonnes of imported 2013 wheat from their state-owned reserves overnight.
The Russian State Statistics Service is reporting its final numbers for the 2018 Russian grain harvest. Wheat production came in at 72.1 million tonnes and the total grain harvest was at 112.9 million tonnes. These were all below the record 2017 harvest numbers.
