By Marlo Glass, MarketsFarm
WINNIPEG, Feb. 19 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts ended lower on Wednesday, giving back gains made during the previous day’s trading session.
A lower tone for Malaysian palm oil in overnight trade sparked considerable selling activity on the canola market. Weakness in soy oil also failed to give canola a boost, as markets wait for stimulus from Chinese buying to rev up the economy again.
The Canadian dollar has been steady this week, around 75.58 U.S. cents, failing to sway canola in any significant way.
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On Wednesday, 28,659 contracts were traded, which compares with Tuesday when 55,330 contracts changed hands. Spreading accounted for 24,188 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) finished stronger on Wednesday due to strong demand for crushing.
As the end of the month draws near, many traders are liquidating their March contracts in favour of May positioning, keeping some pressure on soybeans prices.
Also weighing down soybeans is an ever-growing Brazilian soybean crop. One private firm has increased estimates to total 125.6 million tonnes.
A weaker local currency in Brazil is also making the country’s exports more attractive to buyers around the world.
CORN futures were weaker on Wednesday.
Last week’s ethanol data from the Energy Information Association will be released tomorrow due to the President’s Day Holiday on Monday. However, an ethanol pricing report from the United States Grains Council showed that prices for ethanol in the Gulf of Mexico increased by approximately one per cent week over week.
Brazil’s second corn crop is 32 per cent planted, lagging behind the average pace of 40 per cent planted at this time in a typical year.
WHEAT futures were slightly lower today, giving back some of the double-digit gains observed in yesterday’s trading session.
Russia’s agriculture ministry has projected the country’s 2020 wheat crop to be between three and five per cent higher, year over year. The U.S. Department of Agriculture projected the 2019/2020 Russian wheat crop at 73.5 million tonnes.
Swarms of locusts have been reported in India and Pakistan, but measures to control the outbreak are well under way, and crops likely will not be impacted.
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