By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Dec. 5 (MarketsFarm) – The ICE Futures canola market was stronger on Thursday, moving off of nearby lows as gains in Chicago Board of Trade soybeans and short-covering ahead of Friday’s Statistics Canada production report provided support.
After the government agency pegged the canola crop at 19.4 million tonnes in September, market opinions are divided on whether canola production will be up or down in the updated data.
With many fields unharvested this fall, investors are uncertain how farmers will count the crops they still intend to harvest in the spring. In addition, questions remain over how yield losses in some areas will be offset by better than expected crops elsewhere.
Continued strength in the Canadian dollar tempered the upside potential in canola.
About 29,355 canola contracts traded on Thursday, which compares with Wednesday when 30,544 contracts changed hands. Spreading accounted for 19,782 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Canola Jan 454.50 up 1.90
Mar 463.30 up 1.90
May 471.40 up 1.70
Jul 477.50 up 1.50
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, with good gains in soymeal pulling up the rest of the bean complex.
Weekly United States soybean export sales of 683,000 tonnes came in at the lower end of trade expectations, but additional private sales of 245,000 tonnes to unknown destinations reported separately by the U.S. Department of Agriculture provided some support.
Optimism over U.S./China trade talks was also supportive, although such optimism has come and gone in the past.
Large South American crop prospects tempered the upside in soybeans.
CORN was lower, as weekly U.S. corn export sales of just over half a million tonnes came in at the lower end of expectations. Losses in wheat also put some spillover pressure on the corn market.
WHEAT futures were lower, with the largest losses in the winter wheats.
Weekly U.S. wheat export sales of about 225,000 tonnes were below average trade expectations. However, total U.S. wheat exports during the marketing year to date are running ahead of last year’s pace.
A trade agreement between the U.S. and Japan was seen as supportive for U.S. wheat prices, as the deal should make U.S. wheat more competitive with Canadian and Australian wheat into the country.
Futures Prices as of December 5, 2019
Prices are in Canadian dollars per metric ton