By Marlo Glass, MarketsFarm
WINNIPEG, Jan. 30 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts ended lower on Thursday, breaking through past support to the downside.
The World Health Organization has declared the coronavirus outbreak in China to be an international public health emergency. The rapidly-spreading virus has spooked financial markets. The skittish mood has spilled over into commodity prices.
A weaker tone for soyoil on the Chicago Board of Trade kept pressure on canola prices. Last week, soyoil export sales totaled just over 29,000 tonnes, which was on the lower end of trade expectations.
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Relative weakness to the Canadian dollar wasn’t enough to push values into the green. At midday, the dollar was around 75.6 U.S. cents.
On Thursday, 21,737 contracts were traded, which compares with Wednesday when 28,770 contracts changed hands. Spreading accounted for 13,860 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) finished lower on Thursday, plagued by quiet export demand.
Last week, soybean export sales totaled just under 470,000 tonnes, which was on the lower end of trade expectations. Export sales were down 41 per cent compared to the previous week, and 11 percent lower than the prior four-week average.
Soybean cake and meal sales totaled approximately 438,000 tonnes, which was on the higher end of trade expectations.
One meteorologist said key growing regions in northern Brazil are experiencing wet weather during a critical point in the season. Brazil is in the middle of its soybean harvest, and is expected to produce a record-high amount this year.
Yesterday, United States President Donald Trump signed the U.S.-Mexico-Canada trade deal, or USCMA. Once all three countries ratify the deal, it will replace NAFTA. Canadian Parliament has also begun the ratification process.
CORN futures were weaker today, despite consistent export demand.
Last week, export sales were over 1.23 million tonnes. That was on the higher end of trade expectations. Corn exports were up by 23 per cent from the previous week, and almost 100 per cent higher than the prior four-week average.
Reduced travel activity to regions of China has weighed on fuel demand, which has resulted in lower prices for both crude oil and biofuels such as ethanol.
WHEAT futures were mostly lower on Thursday, staying mostly lower despite steady export demand. Minneapolis spring wheat showing pallid gains.
Last week, wheat export sales, totaled just over, 646,000 tonnes. That’s on the higher end of trade expectations, but 7 per cent lower than the week prior.
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