WINNIPEG, Sept. 25 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were mixed on Wednesday, as market activity remained largely range-bound.
Forecasts across the Prairies are turning unseasonably cold and rainy later this week, with instances of snow in some regions. That’s likely to inject a weather premium back into markets, as harvest continues to be delayed.
On Wednesday, 15,011 contracts were traded, which compares with Tuesday when 29,875 contracts changed hands. Spreading accounted for 11,242 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were mostly lower on Wednesday, due mostly to a stronger greenback and a lack of a trade deal between the United States and China.
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Yesterday, the United States Department of Agriculture (USDA) reported a private export sale of 581,000 tonnes of soybeans for delivery to China, one of many sales seen as a gesture of goodwill ahead of an official trade deal.
Soybean crop conditions are rated as 54 per cent good to excellent, which is the same rating as last week.
CORN futures were slightly lower today, based on low ethanol output. The U.S. Energy Information Administration said ethanol production dropped last week to the lowest output levels since April 2016. Production averaged 943,000 barrels per day, which is a decline of 60,000 barrels on the week.
There is currently no timeline in place for the promised release of a biofuels reform package.
WHEAT futures were mixed on Tuesday. Forecasted rain in key growing regions has significantly delayed the spring wheat harvest, which buoyed prices, while bids in Chicago and Kansas lagged.
Experts expect U.S. wheat production numbers to be slightly lower than originally anticipated, at around 1.968 billion bushels. That’s about 12 million bushels lower than previous estimates.
Japan and the U.S. have reached a preliminary trade deal. Approximately $7 billion worth of U.S. agriculture products will be open for trade between the two countries. Tariffs on beef and pork will be reduced. Further details of the agreement are to be announced in days to come.
