By Marlo Glass, MarketsFarm
WINNIPEG, March 12 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished in the red on Wednesday, erasing modest gains made earlier in the week.
Significant uncertainty posed by the COVID-19 coronavirus and its subsequent impact on global markets has sidelined many market participants. Spreading has been lighter than usual due to weaker buying activity.
The Canadian dollar remains around 72 U.S. cents, which is the lowest point in several years.
However, a weaker tone for the Chicago soy complex weighed on canola prices.
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On Thursday, 20,881 contracts were traded, which compares with Wednesday when 25,698 contracts changed hands. Spreading accounted for 10,776 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) finished lower on Wednesday, pressured by low demand.
Last week, according to the United States Department of Agriculture (USDA), soybean export sales totaled just over 302,000 tonnes. That was 12 per cent lower than the previous week and 34 per cent lower than the prior four-week average. It’s also a new low for the 2019/2020 marketing year.
China has canceled over 90,000 tonnes of soybean sales.
Soybean cake and meal sales totaled almost 172,000 tonnes, which was 42 per cent lower than the previous week and 22 per cent behind the four-week average. Soy oil sales totalled just under 25,000 tonnes, which was in line with trade expectations.
CORN futures were weaker on Thursday, despite positive export sales data.
Last week, export sales totalled 1.47 million tonnes, which was an increase of 91 per cent from the prior week. It’s also a 12-week high. Market participants were expecting corn exports to be between 600,000 and 800,000 tonnes.
WHEAT futures were lower on Wednesday.
Wheat export sales totaled 452,000 tonnes last week. That’s down by 17 per cent from the previous week and 6 per cent lower than the prior four week average.
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