By Marlo Glass, MarketFarm
WINNIPEG, May 13 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were on either side of unchanged on Wednesday, as planting activity gets under way across the Canadian Prairies.
In Manitoba, all crops are approximately nine per cent planted. Canola crop planting progress ranges from just beginning to 15 per cent complete, depending on the region.
Considerable weakness in Chicago’s soy complex prohibited significant gains for canola. Nearby soy oil contracts were down by over a third of a cent.
Relative weakness in the Canadian dollar was supportive of canola prices. The dollar was just under 71 cents at midday.
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On Wednesday, 18,293 contracts were traded, which compares with Tuesday when 14,272 contracts changed hands. Spreading accounted for 10,924 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were broadly lower on Wednesday despite positive export activity.
This morning, the United States Department of Agriculture (USDA) reported a sale of 396,000 tonnes of soybeans purchased by China. About half of that is due for delivery for the 2019-2020 marketing year, and half is due the following marketing year.
Yesterday, the USDA’s World Agriculture Supply Demand Estimates (WASDE) forecast U.S. soybeans to total over 2 billion bushels this marketing year. China is expected to be responsible for 61 per cent of all new crop soybean exports.
CORN futures were weaker today.
According to data from the Energy Information Administration, ethanol production averaged 617,000 barrels per day last week. That was 19,000 barrels per day higher than the week prior.
Ethanol stocks were lower by 1.42 million barrels on the week which is the second-largest weekly drop on record. The USDA has cut ethanol corn demand by another 100 million bushels from previous estimates.
WHEAT futures were broadly lower on Wednesday.
Globally, wheat production is expected to total 768 million tonnes in 2020. The USDA forecasted U.S. wheat exports to total just under 26 million tonnes, which is approximately 14 per cent of the global total.
Key growing regions of the US are expected to get considerable rain over the next few days.
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