By Glen Hallick, MarketsFarm
WINNIPEG, May 6 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were steady to higher on Wednesday, as the Canadian dollar was retreating due to declines in crude oil prices.
The loonie was at 70.80 U.S. cents at mid-afternoon, compared to Tuesday’s close of 71.27.
Statistics Canada will release its crop area report on Thursday. The report was postponed from April 24 to May 7 because of the COVID-19 pandemic. Analysts are split when it comes to increases and decreases in major crops.
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MarketsFarm is projecting canola acres to slip by 2.5 per cent from 2019 at 20.42 million. Soybean acres are forecast fall 4.7 per cent from last year at 5.45 million.
There were 15,043 contracts traded on Wednesday, which compares with Tuesday when 13,806 contracts changed hands. Spreading accounted for 10,340 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 465.40 up 1.10
Nov 472.30 up 0.80
Jan 478.00 up 0.40
Mar 484.10 up 0.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, due to a lack of fresh buying, continuing concerns over the global economy and gains in the United States dollar.
The U.S. Department of Agriculture (USDA) reported today that soybean exports for March amounted to 2.57 million tonnes. That’s well down from March 2019 when a record 3.72 million tonnes were exported. Soymeal exports topped 1.21 million tonnes and soyoil exports were almost 145,500 tonnes.
China warned the U.S. today, not to use new tariffs as a weapon in trade relations between the two countries. U.S. President Donald Trump has threatened to impose new tariffs on Chinese imports.
CORN futures were lower on Wednesday, following soybeans.
The U.S. Energy Information Administration reported today that daily ethanol production averaged 598,000 barrels per day (BPD) for the week ended May 1 for a total of 4.19 million barrels. Although that’s an increase of 11 per cent from the previous week, it’s 42 per cent drop from this time last year.
The USDA said March corn exports were 4.62 million tonnes, for the best month of the 2019/20 marketing year. So far this year more than 20.34 million tonnes have been shipped.
There were more reports today stating dry conditions will cut Brazil corn production in 2020 to about 95.0 million tonnes. Initially, there had been hopes the Safrinha crop would have topped 100.0 million tonnes.
WHEAT futures were lower on Wednesday, in sympathy with soybeans and corn.
The USDA reported wheat exports for March were 1.83 million tonnes.
Despite the pandemic, the Oklahoma wheat tour went ahead and projected yields to be 33.16 bushels per acre. The Kansas wheat tour was cancelled for this year.
The Buenos Aires Grain Exchange (BAGE) forecast Argentina wheat acres for 2020/21 to be 16.56 million acres. The planting of wheat in the country is expected to start within a couple of weeks.
