WINNIPEG, Oct. 15 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Tuesday, supported by strong soy oil prices.
Soy oil is trading at multi-month highs, boosted mainly by positive trade talks between the United States and China.
Canola values are currently competitively priced compared to its vegetable oil counterparts, with strong crush margins a feature.
As of today, there is no weather premium in canola prices, despite the significant snow in most areas of Manitoba late last week. The trader said a weather premium may be introduced depending on how harvest progress continues over the next few weeks.
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A relatively stronger Canadian dollar also put pressure on canola values. The dollar is currently around 75.7 U.S. cents.
On Tuesday, 53,845 contracts were traded, which compares with Friday when 37,605 contracts changed hands. Spreading accounted for 42,210 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were mostly lower on Tuesday, despite positive trade sentiments between the United States and China.
Following negotiations in Washington, Chinese officials have said they’re prepared to start purchasing more U.S. agriculture products, including pork and soybeans, in exchange for relief from the next round of tariffs.
Experts expect soybean harvest progress to be around 25 per cent complete, while typical harvest progress is around 50 per cent done.
CORN futures were slightly lower today, due to continually quiet demand.
A recent export report from the USDA showed approximately 470,000 tonnes of corn were inspected for export last week. That brought year-to-date corn exports to 2.496 million tonnes, which is almost 64 per cent below exports at this time last year.
Market participants expect the corn harvest to be around 22 per cent complete, slightly behind the average of 35 per cent complete.
Drier weather in key growing areas of the Corn Belt will allow for some harvest progress this week.
WHEAT futures were lower on Tuesday, due to competitively priced global competition.
Last week, the USDA reported approximately 462,000 tonnes of wheat was inspected for export. About 30 per cent of that was hard red wheat.
Total wheat exports this year are around 8.9 million tonnes, which is 17 per cent ahead of last year’s exports.
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