By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 9 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Wednesday, giving up a large chunk of yesterday’s big gains. Weakness in Chicago soyoil and European rapeseed, along with a stronger Canadian dollar weighed on values.
At mid-afternoon, the Canadian dollar was at 76.01 U.S. cents, compared to Tuesday’s close of 75.81.
Support for canola came from a risk premium following two nights of frost across most of the Prairies.
“The frost has really thrown a wrench in the production estimate,” stated a Winnipeg-based trader.
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Manitoba Agriculture reported 22 per cent of the province’s canola has been harvested for a jump 15 points from last week’s report. However, the pace is far behind the three-year average of 57 per cent complete.
There were 23,126 contracts traded on Wednesday, which compares with Tuesday when 35,699 contracts changed hands. Spreading accounted for 14,930 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 505.40 dn 5.50
Jan 512.20 dn 5.60
Mar 517.50 dn 5.10
May 521.30 dn 5.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Wednesday, due to export demand.
The United States Department of Agriculture (USDA) released the report of its attaché in China. The attaché said China plans to increase its soybean imports in 2021 by 4.4 per cent to 95.0 million tonnes.
The USDA announced two flash sales of soybeans, with the first for 238,000 tonnes to China and the other for 132,000 tonnes to unknown destinations. Delivery for both is to be during the current marketing year.
The USDA issued its weekly crop progress report yesterday, with soybeans down one point to 65 per cent good to excellent condition. Soybeans dropping leaves was at 20 per cent, for a gain of 12 from the previous week and ahead of the five-year average of 16 per cent.
The USDA will release its World Agricultural Supply and Demand Estimates (WASDE) along with its crop production, world agriculture production, plus its grains and oilseeds reports on Sept. 11. Market expectations for soybean yields are 50.8 to 52.9 bushels per acre.
CORN futures were slightly lower on Wednesday, as the markets await for Friday’s S&D report.
Trade predictions for corn yields this year range from 175.4 to 181.0 bu/ac.
The USDA reported corn conditions were down one point to 61 per cent good to excellent. Corn dough was at 94 per cent, corn dented at 65 per cent and corn mature at 25.
U.S. President Donald Trump said he’s not in favour of retroactive exemptions for small oil refineries from Renewable Fuel Standard blending requirements. His comments are seen as him trying to improve his support among U.S. farmers.
Strong winds and heavy rains in northeast China have threatened the region’s corn production. Nearly 39 per cent of China’s corn is grown in the northeast.
WHEAT futures were on either side of steady on Wednesday, with small losses for Chicago and Minneapolis as Kansas City nudged upward.
The USDA said 83 per cent of spring wheat harvest was completed, up 13 points from the previous week, but four back of the five-year average. The planting of winter reached five per cent finished.
Market predictions place wheat stocks at 900.0 million to 978.0 million bushels.
Egypt announced on Wednesday that its own commodity exchange for wheat, sugar, rice and oil will begin trading in early 2021. Egypt is the world’s largest importer of wheat.
Russia said it exported 15.0 million tonnes of wheat from January to July. That’s an increase of 10.3 per cent from the same period in 2019.
