By Marlo Glass, MarketsFarm
WINNIPEG, Jan. 29 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts ended steady to lower on Wednesday, retreating from gains earlier in the trading session.
Rebounding prices for Malaysian palm oil and soyoil on the Chicago Board of Trade provided some support to canola values.
Relative weakness to the Canadian dollar also gave canola boost, but it wasn’t enough to push values into the green. At midday, the dollar was around 75.73 U.S. cents.
Trading volumes were comparably lighter during the session compared to earlier in the week, suggesting that selling was “a bit overdone to the downside,” according to one Winnipeg-based trader.
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On Wednesday, 28,770 contracts were traded, which compares with Tuesday when 39,790 contracts changed hands. Spreading accounted for 20,548 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly lower on Tuesday, continuing the week’s pricing trends.
China has not made any new soybean purchases recently, despite signing the Phase One Trade Deal two weeks ago. On the day of the signing, China purchased 126,000 tonnes of soybeans, but has not made any purchases since then. However, the country is currently celebrating its Lunar New Year, and also dealing with an outbreak of a new coronavirus. So far, the virus has infected over 6,000 people.
This afternoon, United States President Donald Trump signed the United States-Mexico-Canada trade agreement, or USMCA. The trade deal will replace NAFTA after all three countries ratify the deal. The legislation was introduced to Canadian Parliament today.
CORN futures were weaker today, giving back some gains from earlier in the week.
Argentina’s first corn crop is about 11 per cent harvested, which is approximately twice as fast as the typical harvest rate. However, the rate of planting the second corn crop is well behind average.
Argentina is expected to produce between 46 and 50 million tonnes of corn, which is slightly lower than the previous year.
According to data from the Energy Information Administration, last week, ethanol production was down by 20,000 barrels, to total just over 1 million barrels per day.
WHEAT futures were lower on Wednesday.
A general strike in France has thrown a wrench in the country’s export supply chain. In particular, striking dock workers have resulted in some countries seeking alternative sellers.
Ukrainian wheat exports total 15.6 million tonnes so far this marketing year, which is a record high.
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