By Glen Hallick, MarketsFarm
WINNIPEG, April 13 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Monday, as sharp drops in Chicago soyoil and soymeal weighed on values.
There was some support from the spread trade, according to a trader.
The weather on the Prairies is expected to improve this week, with slowly improving temperatures in Alberta starting on Tuesday. Saskatchewan and Manitoba are not expected to warm up until Thursday.
The Canadian dollar was higher mid-afternoon Monday at 72.09 U.S. cents, compared to Thursday’s close of 71.51.
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There were 18,298 contracts traded on Monday, which compares with Thursday when 17,965 contracts changed hands. Spreading accounted for 16,514 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 459.80 dn 3.80
Jul 465.70 dn 3.20
Nov 471.70 dn 4.00
Jan 477.40 dn 3.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Monday, as concerns over declining restaurant demand for meat weighed on soyoil and soymeal values.
Smithfield Foods halted production at its South Dakota plant today, which added to a growing number of processing plant shutdowns in the U.S. As the number of shutdowns increase, there are growing concerns of spillover into feed prices.
The United States Department of Agriculture announced on Friday a private sale of 120,000 tonnes of soybeans to unknown destinations. On Monday, the department reported export inspections of 16.3 billion bushels of soybeans for the week ending April 9.
The U.S. Animal and Plant Health Inspection Service (APHIS) announced today that the H7N3 avian flu was found in a South Carolina turkey flock.
An agreement to slash global crude oil production was reached between OPEC, Russia and the G20 on Monday. OPEC and Russia agreed to cut their production by 9.7 million barrels per day (BPD) as of May 1. The G20, including Brazil, Canada, the U.S. will reduce their production by 3.7 million BPD, other oil-producing countries by 1.3 million. The markets are concerned the cuts may not be deep enough to offset a sharp drop in demand due to the COVID-19 pandemic.
CORN futures were steady to lower on Monday, as spillover from soybeans was countered by colder weather in main growing areas in the U.S.
The USDA reported export inspections of 40.5 billion bushels of corn.
The USDA attaché in China lowered that country’s 2020/21 corn production by 8 million tonnes. Meanwhile, the Chinese government increased its projections of corn imports also by 8 million tonnes.
The corn harvest in Argentina was reported to be 25 per cent complete. The country is expected to produce about 50 million tonnes this year. However, unusually lower water levels in the Parana River are making navigation more difficult and slowing exports.
WHEAT futures were mixed on Monday, as weaker demand pushed Chicago and Minneapolis prices lower. Meanwhile Kansas City incurred slight gains.
Freezing temperatures struck parts of the U.S. Southern Plains and the Midwest. The Central Plains and Upper Midwest are forecast to receive snow this week.
The USDA announced a private export sale on Monday of 120,000 tonnes of hard red winter wheat to unknown destinations. On Friday, the USDA announced a private sale of 165,000 tonnes of hard red winter wheat to China.
