By Marlo Glass, MarketFarm
WINNIPEG, July 20 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Monday, thanks to strength in comparable vegetable oils.
Support came from strength in comparable vegetable oils, including Chicago soyoil and Malaysian palm oil.
Turmoil from outside markets was a limiting factor for canola. Crude oil prices have been lower due to concerns that a spike in COVID-19 cases will cause stay-at-home orders to be reinstated, causing demand to sink.
Gains in the Canadian dollar also kept a lid on canola values. The loonie was around 73.8 United States cents for most of the day.
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On Monday, 25,074 contracts were traded, which compares with Friday when 24,120 contracts changed hands. Spreading accounted for 8,384 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Monday, due to strength in comparable vegetable oils.
Malaysian palm oil gained strength due to tightened supplies, labour shortages, and steadily improving demand.
The Chicago soy complex was stronger due to consistent export demand. This morning, the United States Department of Agriculture (USDA) announced a sale of 132,000 tonnes of soybeans, purchased by unknown destinations.
Last week, soybean export inspections totalled 16.6 million bushels. China accounted for almost 20 per cent of the week’s total bean shipments. Egypt and The Netherlands were also top destinations for last week’s soybean shipments.
CORN futures were weaker on Monday.
According to the weekly export inspection report from the USDA, corn export inspections totalled over one million tonnes last week, which was more than double the previous week.
Brazil’s second corn crop harvest is wrapping up, and is reportedly 75 to 80 per cent complete.
The USDA expects better corn yields out of Mexico this year, due to good growing weather in the region.
WHEAT futures were lower today due to seasonal harvest pressure.
Last week, wheat export inspections totalled 500,000 tonnes, which was down by about 25 per cent from the previous week.
A USDA attache has increased estimates for Australia’s wheat crop, totalling 27 million tonnes. That’s about a million tonnes higher than initial forecasts.
