By Marlo Glass, MarketsFarm
WINNIPEG, March 11 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished in the red on Monday, as trading activity was muted due to continued uncertainty in financial markets.
Canadian Prime Minister Justin Trudeau has pledged C$1 billion in response to the COVID-19 coronavirus. C$500 million will go to provinces and territories to fund critical healthcare system needs. The United States has not announced any concrete economic stimulus plans yet.
The Canadian dollar remains below 73 U.S. cents for the first time in several years, which provided some support to canola values.
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However, a weaker tone for the Chicago soy complex weighed on canola prices.
On Wednesday, 25,698 contracts were traded, which compares with Tuesday when 14,606 contracts changed hands. Spreading accounted for 9,588 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) finished lower on Wednesday, pressured by large global stocks.
The February World Agriculture Supply Demand Estimates (WASDE) was released by the United States Department of Agriculture (USDA) yesterday. The report increased world soybean ending by 3 million tonnes due to large South American crops.
Argentina’s farmers are striking this week in protest of a three percentage point increase to export taxes on soy and soy products.
This morning, the USDA announced a private export sale of 194,000 tonnes of soybeans, purchased by unknown destinations.
CORN futures were weaker on Wednesday.
The Energy Information Administration said ethanol production averaged just over 1 million barrels per day last week. That was lower by 35 thousand barrels per day week over week. Ethanol prices were 5 per cent lower when compared to the same week last year.
The COVID-19 coronavirus may provide support to ethanol prices, as denatured ethanol is the main ingredient in hand sanitizer.
Brazil’s agriculture ministry has lowered the country’s corn production estimates by 400,000 tonnes to total just over 1 million tonnes.
WHEAT futures were lower on Wednesday.
The WASDE predicted Russian wheat production to be higher this year. Exports from the country are also expected to increase.
Russia’s price war with Saudi Arabia has devalued the country’s currency considerably.
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