By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 20 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished higher on Wednesday, as bids continued to receive support from stronger Chicago soyoil and a lower Canadian dollar.
Soyoil at the Chicago Board of Trade gained almost a quarter of a cent today. A shortage of palm oil due to dry conditions in Indonesia and Malaysia has pushed up prices, with spillover onto soyoil.
The loonie was weaker at mid-afternoon Wednesday at 75.13 U.S. cents, after closing Tuesday at 75.55.
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The strike by 3,200 workers at Canadian National Railway is in its second day. Already there have been reports of Canadian manufacturers cutting back on their production with less rail transportation. Included in the manufacturers are canola crushers, according to the Canadian Oilseed Processors Association.
Marie-Claude Bibeau retained the agricultural portfolio in today’s swearing in of Prime Minister Justin Trudeau’s new federal cabinet. Trudeau added rural economic development to Maryam Monsef’s duties, and Jim Carr received the non-cabinet position of special representative for the Prairies.
There were 17,618 contracts traded on Wednesday, which compares with Tuesday when 18,937 contracts changed hands. Spreading accounted for 9,872 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 466.50 up 1.30
Mar 475.30 up 1.20
May 482.90 up 1.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Wednesday, due to a negative turn in United States/China trade talks.
There are reports that Phase One will not being signed by the two countries come Dec. 31. As negotiations for a comprehensive deal continue, the U.S. demanded China stick with the set amount of U.S. agricultural purchases. China retorted that could harm its trading relations with other countries, and officials are displeased with U.S. comments regarding the ongoing pro-democracy demonstrations in Hong Kong. U.S. President Donald Trump warned he will hike tariffs on Chinese imports come Dec. 15 if China doesn’t sign an agreement.
As impeachment hearings continue in the U.S. House of Representatives, Republicans raised the issue of the U.S.-Mexico-Canada Agreement not being ratified by Congress and accused the Democrats of stalling the deal. Democrats stated they’re prepared to pass the agreement when they have assurances U.S. workers will be better protected.
Ahead of the U.S. Department of Agriculture’s (USDA) weekly export sales report due out Thursday, trade expectations for soybeans were at 800,000 to 1.400 million tonnes. Soymeal was at 100,000 to 450,000 tonnes, with soyoil at 5,000 to 25,000 tonnes.
Rain has been forecast for Brazil and Argentina, with the former said to receive up to four inches in the next seven to 10 days. This will help alleviate dry conditions for soybean planting and could see increased production estimates.
CORN futures were lower on Wednesday, due to spillover from soybeans.
Market predictions for corn export sales were 450,000 to 700,000 tonnes.
The U.S. Energy Information Administration reported that ethanol production was up by 3,000 barrels per day (BPD) for the week ended Nov. 15. That meant production was at 1.033 million BPD.
WHEAT futures were mixed on Wednesday, with small gains for Chicago and Kansas City, while Minneapolis slipped backwards a little.
Market predictions for wheat export sales were 200,000 to 500,000 tonnes.
ABARE reported that Australian wheat production will sink to a 10-year low, due to drought conditions. Australian farmers are expected to produce 16.7 million tonnes.
