By Marlo Glass, MarketFarm
WINNIPEG, April 20 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished lower on Monday, dragged down by firmness in the Canadian dollar and a lower tone for Chicago soybeans.
One trader noted there aren’t any spring weather concerns just yet, but we may have challenges in a few weeks. The Red River crested north of the United States border today, but widespread flooding has not occurred.
Relative strength in the Canadian dollar kept pressure on values. The dollar was at 70.8 cents at midday.
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SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Monday.
The May contract has lost 31 cents per bushel in recent trading sessions, partially due to quiet demand. However, China is expected to import more soybeans soon, due to complications from the COVID-19 pandemic and African Swine Fever in hog herds.
One private estimate forecast soybean imports to total 92.48 million tonnes this year.
China’s pork imports are also expected to increase by approximately 33 per cent to total 2.8 million tonnes in 2020.
CORN futures were weaker on Monday due to the prolonged lack of demand for ethanol.
Last week, money managers increased their net short position in nearby corn futures and options to total over 137 thousand contracts, compared to 110 thousand a week earlier, according to data from the United States Commodity Futures Trading Commission.
Argentina’s corn harvest is 33 per cent complete, according to reports.
WHEAT futures were stronger on Monday, bouncing back from losses incurred in prior trading sessions.
One private firm has indicated that Russian wheat exports could be restricted between May and July if the remaining quota is hit.
Crude oil futures are considerably lower today despite massive cuts agreed to by OPEC, its allies, and other countries in the G20. Massive oil reserves, lack of storage space, and low demand due to the COVID-19 pandemic have weighed on futures. Earlier today, the nearby May contract for West Texas Intermediate dropped to negative levels for the first time ever, trading as low as -US$40 per barrel, as investors bail out of the front month. The losses were more subdued in the more deferred months, with the more active June contract trading at around US$21 per barrel.
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