By Glen Hallick, MarketsFarm
WINNIPEG, May 25 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Monday amid light volumes of trading.
Most of the United States markets were closed today for Memorial Day, including the Chicago Board of Trade. Trading is scheduled to reopen at 7 p.m. Central.
A trader said the drop in Chicago soyoil on Friday pulled down canola.
Lower Malaysian palm oil and European rapeseed also weighed on values.
Agriculture and Agri-Food Canada (AAFC), on Friday forecast the canola carryover in 2019/20 to drop 600,000 tonnes at 2.6 million. The carry for 2020/21 is expected to fall to 2.3 million tonnes.
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The trader believes that the carryover could slip under 2.0 million tonnes as he speculated there could be less canola planted. Statistics Canada projected 20.6 million acres to be sown, but the slow pace of seeding on the Prairies could result in less canola acres. In turn, that could lead to reduction in the carryover.
The federal agency reported on Monday that more than 845,000 tonnes of canola were crushed in April, along with approximately 162,000 tonnes of soybeans.
The Canadian dollar was slightly higher at 71.48 U.S. cents at mid-afternoon, compared to Friday’s close of 71.35.
There were 6,532 contracts traded on Monday, which compares with Friday when 23,323 contracts changed hands. Spreading accounted for 3,320 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 460.20 dn 3.30
Nov 469.70 dn 2.70
Jan 476.30 dn 2.60
SOYBEAN futures were not traded at the Chicago Board of Trade (CBOT) on Monday as it was closed for the Memorial Day holiday. Trading is scheduled to reopen at 7 p.m. Central.
With the long weekend, the United States Department of Agriculture (USDA) will issue its weekly crop progress report on Tuesday. Market expectations are for soybean planting to be 60 to 65 per cent complete.
The war of words between the U.S. and China took another step for the worse today, as China’s foreign minister accused the Trump administration of trying to start another Cold War. The White House has been critical of China over its handling of pro-democracy protests in Hong Kong, as well as the threat China poses to the continued independence of Taiwan. Also, the Trump administration has repeatedly blamed the COVID-19 pandemic entirely on China.
CORN futures won’t be traded until Monday evening.
Trade predictions put the pace of U.S. corn planting at 90 to 95 per cent finished.
Despite the tensions between the U.S. and China, there has been market speculation that China will make a large purchase of U.S. corn.
Ukraine reported that 96 per cent of its crops have been planted for 2020/21, including 12.85 million acres of corn.
France reported that 93 per cent of its corn crop has been planted for 2020/21. It rated 86 per cent good to excellent, for a drop of one point from the previous week.
WHEAT futures will resume on Monday evening.
The markets projected the planting of U.S. spring wheat to be 60 to 65 per cent complete. However, North Dakota is thought to be 55 to 60 per cent finished.
Also, the market forecast the condition of U.S. winter wheat to either remain at 52 per cent good to excellent, or to improve slightly.
The soft wheat crop in France rated 57 per cent good to excellent for a gain of two points from the previous week.
