By Glen Hallick, MarketsFarm
WINNIPEG, March 2 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts stronger on Monday, benefitting from gains in the Chicago soy complex and European rapeseed.
Of note, there was a jump of almost C$3 per tonne in the final minutes of today’s session.
Support also came from a lack of farmer selling and increased short covering. Declines in Malaysian palm oil weighed on values.
By mid-afternoon Monday, the Canadian dollar was higher at 74.88 U.S. cents, having gained approximately a half cent since Friday’s close.
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There were 18,048 contracts traded on Monday, which compares with Friday when 18,185 contracts changed hands. Spreading accounted for 9,930 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 463.00 up 6.70
Jul 470.60 up 6.60
Nov 480.20 up 5.00
Jan 486.90 up 5.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Monday, due increased buying interest after being oversold.
The World Bank said it might step in to help stabilize the global economy as the number of reported cases and deaths from the COVID-19 coronavirus continues to increase. As of today, the number of cases world-wide exceeded 90,000 with more than 3,000 deaths. Fears have been that COVID-19 will stymie global demand.
The United States Department of Agriculture (USDA) reported today export inspections of almost 670,610 tonnes of soybeans for the week ended Feb. 27. That’s a gain of more than 74,330 tonnes from the previous week. To date in the current marketing year, soybean export inspections have amounted to 29.56 million tonnes.
Today marked the first day of China offering tariff exemptions on a wide variety of U.S. agriculture products, including soybeans, corn and wheat. The U.S./China Phase One trade deal outlines the latter is to purchase US$40 billion in such goods in 2020.
In South America, the soybean harvest in Brazil reached approximately 43 per cent on Feb. 28. Although that’s 13 points behind the pace last year, it’s still within the five-year average. Brazil is on pace to produce a record soybean crop of about 125 million tonnes. Meanwhile, Argentina temporarily ceased soy exports, as the federal government implements its new 33 per cent export tax on soybeans.
CORN futures were higher on Monday, due to spillover from the soy complex.
The USDA said export inspections of corn were around 896,200 tonnes. That’s about 30,600 tonnes more than the previous week. So far this marketing year nearly 14.12 million tonnes have been shipped from the U.S., which was down almost 46.0 per cent from last year.
The Argentine government said it will decrease the export tax on corn. The move is reportedly to persuade farmers to plant more corn acres and fewer soybean acres next year.
WHEAT futures were mixed on Monday, with slight losses for Chicago soft wheat, while hard wheat in Minneapolis and Kansas City were steady to higher.
Export inspections of wheat were close to 654,100 tonnes, an increase of almost 50 per cent from the previous week. Total export inspections tallied 18.83 million tonnes, more than 10.5 per cent ahead of this time last year.
In international sales, Morocco issued a tender for 354,000 tonnes of wheat and Egypt issued a tender for 200,000 tonnes.
