By Glen Hallick, MarketsFarm
WINNIPEG, Dec 24 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Christmas Eve, correcting from yesterday’s losses.
Concerns over tight canola supplies remain a supportive feature in trading.
With low volumes expected next week, volatility should very likely become a feature. Especially with profit-taking and scale-up farmer hedging.
There was support from Chicago soyoil and Malaysian palm oil. European rapeseed was narrowly mixed on the day.
At mid-afternoon the Canadian dollar was regaining recent lost strength. The loonie was at 77.93 U.S. cents, compared to Wednesday’s close of 77.78.
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With Christmas and Boxing Day, the Canadian markets and ICE Futures will be closed until Dec. 29.
There were 17,110 contracts traded on Thursday, which compares with Wednesday when 46,403 contracts changed hands. Spreading accounted for 11,006 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 630.90 up 7.00
Mar 628.40 up 7.60
May 616.10 up 6.00
Jul 601.60 up 5.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Thursday, as South America issues guide prices.
Moderate rains are in the forecast for Argentina in the coming days, while Brazil is expected to see heavy rain.
The Buenos Aires Grain Exchange (BAGE) reports that 77 per cent of Argentina’s soybean crop is in the ground. There are doubts as to how much the remaining 9.6 million acres will be seeded due to dry conditions.
The strike by grain inspectors and oilseed workers in Argentina is unlikely to be resolved anytime soon, according to reports. The two-week-old labour dispute has slowed Argentina’s farm exports to trickle as scores of vessels are backlogged waiting to be loaded.
The markets in the United States will be closed for Christmas on Friday and will reopen Monday, Dec. 28.
CORN futures were higher on Thursday, will spillover from soybeans.
China said its corn imports during November were about 1.2 million tonnes. That’s a whopping 1,142 per cent jump from November 2019. China has imported more than nine million tonnes of corn so far in the 2020/21 marketing year, for a 122 per cent increase over 2019/20.
The BAGE reported that 61 per cent of Argentina’s corn has been planted. Its condition was 24 per cent good to excellent.
WHEAT futures were mixed on Thursday, with gains for Minneapolis and Kansas City, but a loss for Chicago.
The wheat-growing areas of the U.S. received snowfall that will help alleviate the dry conditions. More precipitation is in the forecast over the next two weeks.
Winter crops in the Black Sea region continue to be hampered by cold temperatures and by limited snow cover.
