By Marlo Glass, MarketsFarm
WINNIPEG, Dec. 18 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished weaker on Wednesday, taking back gains made earlier in the week.
Weakness in the soy complex on the Chicago Board of Trade weighed on canola values. Soybean prices were lower after posting gains for four consecutive days.
Vegetable oil markets were lower today due to weakened Malaysian palm oil futures. According to one company, price rationing is lowering demand for palm oil.
However, one trader said, canola remains competitively priced compared to other vegetable oils.
Read Also
North American Grain/Oilseed Review: Canola, CBOT grains down
Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange started the week lower. Despite easing away from heavier…
Canola values were supported by strong trade activity and profit-taking ahead of the holidays. Grain markets have been pushing higher throughout the month, and are expected to hang on to gains into the New Year.
The Canadian dollar was steady at around 76 U.S. cents at midday, keeping some pressure on canola values.
On Tuesday, 50,260 contracts were traded, which compares with Tuesday when 52,996 contracts changed hands. Spreading accounted for 43,244 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, taking back gains made earlier in the week.
Vegetable oil markets were lower today due to weakened Malaysian palm oil futures. According to one company, price rationing is lowering demand for palm oil. Soybean prices were lower after posting gains for four straight days.
The new trade agreement between the United States and China may see U.S. exports to China double over the next two years. In the past, China has purchased around US$24 billion in agriculture goods per year. Some industry experts don’t believe doubling that amount to US$40 to US$50 per year is logistically possible.
“[China] will only buy what they need, when they need it, and at a competitive market price,” said Mike Jubinville of MarketsFarm.
CORN futures finished slightly lower today. One private company estimated planted acreage for corn in 2020 will be around 94.1 million acres. In 2019, planted corn totalled 89.9 million acres.
China may resume purchasing U.S. ethanol under the new trade deal, in order to meet its spending commitments. That would give ethanol values a boost, as prices have been suffering due to tariffs and lowered demand.
Estimates for Argentina’s corn crop are shrinking, due to poorly-timed dry weather. Some estimates are as low as 48 million tonnes.
WHEAT futures were weaker on Wednesday, giving back some double-digit gains made earlier in the week.
One private company estimates that U.S. wheat planted in 2020 will total 44.3 million acres. That’s 1.3 million acres lower than in 2019, and almost 10 per cent lower than the five-year average.
World Grain reported that Ukrainian wheat planting is 10 per cent lower than the previous year due to drought conditions in the fall.
Export demand provided some support for wheat values. Japan issued an international wheat tender for 148,405 tonnes of wheat. Of that, 53,801 tonnes will be sourced from the U.S.
