By Ashley Robinson, Commodity News Service Canada
Winnipeg, Dec. 31 (CNS Canada) – The ICE Futures canola contacts were weaker at market close, with trade having been choppy throughout the day.
Chicago Board of Trade soybean and meal contracts were down, while soyoil contracts were up. Optimism over a weekend tweet from United States President Donald Trump mentioning how he had talked with Chinese President Xi Jinping waned early in the trading session. Many had mused this was just Trump trying to get the markets to end the year on a high note.
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Trade volume was very light throughout the day, as end of the year and the holidays led to lack of interest.
The markets will be closed tomorrow for the New Year’s Day holiday.
About 4,181 canola contracts traded, which compares with Friday when 14,446 contracts changed hands. Spreading accounted for 2,074 of the contracts traded.
There are concerns about dryness in Brazil. Scattered rains fell throughout the dry areas of southern Brazil over the weekend. The forecast for much of Brazil looks dry or dryer than previously reported.
Analysts are lowering their Brazilian soybean production estimates because of the dryness. Estimates now range from 115 to 120 million tonnes, down from 123 to 126 million tonnes earlier.
CBOT corn prices finished the day mixed.
There is talk India may import up to one million tonnes of corn due to shortages and rising prices.
The ethanol report released Friday showed U.S. production was down by 4,000 barrels per day from the week before as ethanol margins continue to weaken. Ethanol stocks fell by 800,000 barrels to 23.1 million barrels.
Wheat futures in the U.S. finished the day weaker.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) went into effect this weekend for six of the 11 countries, including Canada. This could make Canadian and Australian wheat more competitive on the world export market.
Russia is supposedly thinking about offering rail subsidies from February through June to attract wheat deliveries to port. The Russian ruble is still weaker than the U.S. dollar, which is attractive for exports.
Argentina is forecasted to get heavy rains this week, which will impact the final 20 per cent of their harvest. The quality of the wheat still in the fields could be impacted.
