By Marlo Glass, MarketsFarm
WINNIPEG, March 9 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished lower on Monday, as plummeting crude oil values brought havoc to stock and commodity markets alike.
The Organization of Petroleum Exporting Countries and Russia have backed away from prior agreements to cut crude oil production, sending crude oil futures into freefall. Global stock indices were also impacted. Canola has been less sensitive to the mayhem than comparable vegetable oils, and didn’t drop as significantly as Chicago soyoil.
The Canadian dollar was at its weakest point in three years at midday. The dollar was at 73.87 U.S. cents, which provided a bit of support to canola values.
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On Monday, 21,131 contracts were traded, which compares with Friday when 15,124 contracts changed hands. Spreading accounted for 14,402 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) finished lower on Monday, dragged down by a tumultuous financial sector and persistently low export demand.
Last week, U.S. soybean sales to China were the lowest in almost six months, totaling just over 6,000 tonnes. However, this morning, the United States Department of Agriculture (USDA) announced a sale of 123,000 tonnes of soybeans, purchased by unknown destinations.
CORN futures were weaker on Monday.
Ahead of the World Agriculture Supply Demand Estimates (WASDE) from the USDA, market participants expect U.S. corn ending stocks to total 1.88 billion bushels, which is lower than February’s estimate of 1.89 billion bushels.
Global corn stocks are expected to be high due to large South American production levels. Also, Brazil’s corn exports were lower by 78 per cent last month when compared to February of last year.
WHEAT futures were mixed to start the week, with Chicago’s May contract posting modest gains and Kansas City and Minneapolis remaining in the red.
Trade estimates peg U.S. wheat ending stocks to total approximately 25.7 million tonnes, which is higher than February’s estimate of 25.5 million tonnes.
Ukraine’s wheat exports have totalled 16.7 million tonnes so far this marketing year, and grain exports have risen by 24 per cent overall.
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