By Marlo Glass, MarketFarm
WINNIPEG, May 12 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were steady to higher on Tuesday, following the World Agriculture Supply Demand Estimates (WASDE) report from the United States Department of Agriculture (USDA).
One Winnipeg-based trader said the WASDE wasn’t likely to shake canola markets too drastically.
Demand for canola for exports and crush margins have provided to the firm tone for canola prices.
Relative strength in the Canadian dollar prevented further gains for canola prices. The dollar was at 71.4 cents at midday.
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On Tuesday, 14,272 contracts were traded, which compares with Monday when 17,075 contracts changed hands. Spreading accounted for 7,446 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Tuesday following the World Agriculture Supply Demand Estimates (WASDE) from the United States Department of Agriculture (USDA).
According to the WASDE, U.S. soybean production is expected to increase by almost 16 per cent in 2020 to total 4.1 billion bushels. Soybean acreage is expected to be 83.5 million acres, which is almost 10 per cent higher than last year.
Soybean carryover is expected to drop by over 30 per cent to total 405 million bushels.
CORN futures were slightly stronger today, as the dismal outlook predicted by the report wasn’t quite as bleak as anticipated.
Corn production is expected to total just under 16 billion bushels, which is a 17 per cent increase compared to last year’s production.
As ethanol demand has been decimated by the COVID-19 pandemic, corn carryover is expected to rise by over 52 per cent to total 3.2 billion bushels. Trade expectations ahead of the report were for carryover to total 3.4 billion bushels.
WHEAT futures were mostly lower today. Kansas City and Chicago July wheat observed losses while Minneapolis spring wheat saw slight gains.
Wheat production is expected to total 1.86 billion bushels in the coming marketing year, which is down from the 1.92 billion bushels produced in 2019.
However, that’s higher than market predictions ahead of the report, which was 1.84 billion bushels in the US.
Wheat ending stocks are expected to be higher than previously predicted, at 909 million bushels.
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