WINNIPEG, Sept. 26 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Thursday, as market activity remained largely range-bound.
Without any news to support a rally, one trader said speculative buying is sidelined. That, combined with slow-but-steady harvest progression, is weighing on values.
About 17 per cent of Saskatchewan’s canola has been harvested, along with 58 per cent of Manitoba’s crop.
Forecasts across the Prairies are turning colder this weekend, with more rain and some snow predicted in certain regions. That could inject a weather premium back into markets.
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On Thursday, 15,616 contracts were traded, which compares with Wednesday when 15,011 contracts changed hands. Spreading accounted for 9,810 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were mostly lower on Thursday, due to heightened geopolitical tensions.
The United States Department of Agriculture (USDA) reported a private export sale of approximately 275,000 tonnes of soybeans for delivery to China. Last week, a total of 1.038 million tonnes of soybeans were sold. That’s down by nearly 40 per cent from the week prior, but up by 20 per cent from a year ago.
Soymeal sales were around 164,000 tonnes last week, and 34,500 tonnes for soyoil.
Due to African Swine Fever rapidly spreading through parts of Asia, China has purchased more U.S. pork. As the disease is fatal to hogs, there is currently a supply shortage in the region. That will be harmful to future soybean demand.
CORN futures were slightly lower today, based continually low demand. The USDA reported about 494,00 tonnes of corn were sold last week, which was below trade expectations. It’s also a 66 per cent drop from the week prior, and a 71 per cent drop from last year.
One private company estimated world corn carryout to be around 286 million tonnes.
WHEAT futures were mixed on Thursday. Forecasted rain in key growing regions has significantly delayed the spring wheat harvest, which buoyed prices, while bids in Chicago and Kansas lagged.
U.S. wheat export sales were around 283,000 tonnes last week, which is slightly lower than the previous week. Japan bought 103,500 tonnes of wheat this week. The newly signed trade agreement between the U.S. and Japan is expected to improve Japan’s access to U.S. wheat.
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