By Ashley Robinson, Commodity News Service Canada
Winnipeg, Jan. 2 (CNS Canada) – The ICE Futures canola contacts rallied throughout the day to close stronger, following the lead of the soy complex.
Chicago Board of Trade (CBOT) soybean, oil and meal contracts finished the day stronger. The soybean market has been rallying as of late on expectations of Chinese soybean purchases, only to lose ground near market close as the partial United States government shutdown means there have been no export sales reported to confirm soybean purchases.
There is still concern about dryness in Brazil affecting the soybean crop, which is providing support for the oilseed markets. Many analysts are lowering their soybean production estimates for the country.
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About 7,790 canola contracts traded, which compares with Monday when 4,181 contracts changed hands. Spreading accounted for 4,710 of the contracts traded.
Officials from the U.S. and Chinese will meet face-to-face next week on Jan. 7 to talk about trade. The market is speculating China could purchase U.S. soybeans before the meeting.
U.S Department of Agriculture (USDA) soybean export inspections fell short of estimates at 677,679 tonnes on Monday.
CBOT corn prices finished the day mostly stronger, finding some spillover support from the soy complex. As of late corn futures have been trading below moving averages.
Weekly corn export inspections from the USDA released on Monday were in-line with estimates at 913,797 tonnes.
Wheat futures in the U.S. finished the day in the green.
USDA wheat export inspections came in on the lower end of the estimates at 376,281 tonnes.
Taiwan has tendered 111,650 tonnes of U.S. milling wheat.
The USDA winter wheat and canola seedings report is scheduled to be released next week on Jan. 11, along with the supply and demand report. However, the partial government shutdown has put the release of these reports into question.
