By Ashley Robinson, Commodity News Service Canada
Winnipeg, Jan. 16 (CNS Canada) – The ICE Futures canola contacts finished the day stronger, bouncing back from Tuesday’s losses.
Chicago Board of Trade soybean contracts were mixed, oil contracts were slightly weaker and meal contracts stronger. The soy complex had been stronger earlier in the day, but retreated towards unchanged following Tuesday’s comments from United States Trade Representative Robert Lighthizer who said there has been no significant progress actually made on the U.S./Chinese trade issues.
Demand for canola continues to be soft. There are still concerns the ongoing tensions between China and Canada are affecting canola exports to China.
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The Canadian dollar was stronger in value today. According to a Winnipeg-based trader this isn’t impacting canola contracts anymore, as the market has already priced in the higher valued dollar.
About 14,894 canola contracts traded, which compares with Tuesday when 15,341 contracts changed hands. Spreading accounted for 10,074 of the contracts traded.
In the U.S. traders are feeling uneasy over the latest China news and the continuing government shutdown. With the U.S. Department of Agriculture (USDA) still partially closed there is no data to show what, if any business China has been making in regards to buying U.S. agriculture products.
The dry weather affecting most of Brazil’s soybean areas in December could continue for at least the next two weeks, with fairly spotty rains forecasted.
CBOT corn prices finished the day in the green, regaining some of Tuesday’s lost ground.
The weekly U.S. ethanol production report released Wednesday morning, showed an increase in production last week to 51,000 barrels per day. This pushed stocks higher and caused ethanol prices to drop.
South Korean importers bought 266,000 tonnes of optional origin corn overnight.
Indonesia has a tender out for 30,000 tonnes of corn, which will likely be sourced from South America.
Wheat futures in the U.S. finished the day mixed.
There are concerns that the Southern U.S. Plains will not have enough snow cover to protect the winter wheat crop from this week’s cold snap.
Russia’s Agriculture Ministry is estimating the total grain harvest for 2019 at 114.3 million tonnes, which would be larger than last year’s crop.
