WINNIPEG, Oct. 17 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Thursday, remaining mostly range-bound and following trends set earlier in the week.
Harvest progress has put pressure on canola prices, as regions of the Prairies that didn’t receive significant snow are almost finished harvesting canola.
Manitoba’s canola harvest is 80 per cent complete, along with 58 per cent of Saskatchewan’s canola crop. Alberta’s crop report will be released Friday afternoon.
A stronger tone for the soy complex on the Chicago Board of Trade failed to give canola prices a boost. Soybeans were stronger due to rumours of positive trade sentiments between the United States and China. However, Chinese officials wouldn’t say how much U.S. agriculture goods would be purchased, or when negotiations will continue.
A comparatively stronger Canadian dollar also put pressure on canola values. The dollar was just over 76.14 U.S. cents on Thursday.
On Thursday, 37,436 contracts were traded, which compares with Wednesday when 23,406 contracts changed hands. Spreading accounted for 34,930 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, bolstered by positive trade sentiments between the United States and China.
Trade estimates ahead of the weekly export sales report from the United States Department of Agriculture (USDA) are between 900,000 and 1 million tonnes of soybeans, which is well-behind last week’s sales of over 2 million tonnes. However, traders are also expecting this week’s soybean meal export sales to be higher than last week, when soybean meal sales totaled about 364,000 tonnes.
The USDA will re-survey farmers in North Dakota and Minnesota to see how the snowstorm last weekend impacted corn and soybean crops. Any changes to harvested acres will be reported in the USDA’s crop production report on November 8.
According to the most recent crop progress report, 16 per cent of soybeans in North Dakota have been harvested, along with 19 per cent of Minnesota’s soybean crop. That’s significantly behind the average harvest rate.
CORN futures were slightly stronger today, thanks to an increase in daily ethanol production last week. Approximately 970,000 barrels per day were produced during the week of Oct. 11. Ethanol stocks also rose to just over 22 million barrels.
Corn export sales are expected to be between 400,000 and 800,000 metric tonnes for this week.
WHEAT futures were stronger on Thursday, due to snow and inclement weather in key growing regions raising concerns of quality.
Estimates for wheat exports are between 250,000 and 500,000 tonnes for last week.
Futures Prices as of October 17, 2019
Prices are in Canadian dollars per metric ton