By Glen Hallick, MarketsFarm
WINNIPEG, June 6 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Thursday, after showing some independent strength and with spillover from soyoil on the Chicago Board of Trade.
The July canola contract rose by C$4.50 at C$454.70 per tonne. The November contract gained C$4.20 at C$467.10 per tonne.
While Alberta has been getting rain today, Saskatchewan’s hopes for precipitation were largely dashed, with only light showers expected. Manitoba was to receive light showers as well today. Persistent dry conditions pushed up prices.
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There were 22,111 contracts traded on Thursday, which compares with Wednesday when 14,009 contracts changed hands. Spreading accounted for 11,060 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 454.70 up 4.50
Nov 467.10 up 4.20
Jan 473.20 up 4.20
Mar 478.80 up 4.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday on technical selling.
In the United States Department of Agriculture’s (USDA) weekly export sales report, old crop soybean exports were slightly above market expectations at 510,000 tonnes. New crop sales were at the low end of market expectations at 73,700 tonnes.
A private analytical firm projected U.S. soybean production for the 2019/20 crop year to be close to 117.40 million tonnes, with almost 85.0 million acres planted.
In a recently signed deal, Russia will increase its exports of soybeans, rapeseed and other grains to China.
CORN futures were stronger on Thursday, due technical buying and spillover from a bounce in wheat bids.
The USDA reported cancellations of old crop corn sales led to exports of minus 8,800 tonnes, very far below the low end of market expectations of 500,000 tonnes. New crop sales at 23,500 tonnes were also well back of expectations.
The private analytical firm estimated U.S. corn production in 2019/20 to exceed 344.30 million tonnes on nearly 85 million acres.
WHEAT futures were stronger on Thursday due to dry conditions in major wheat producing countries in the world, such as Australia, Canada and Russia.
The USDA reported old crop wheat sales were minus 26,000 tonnes, due to cancellations, but were within expectations. New crop sales exceeded expectations at 511,000 tonnes.
The private firm predicted U.S. winter wheat production to be approximately 35.0 million tonnes, with spring wheat production short of 50.5 million tonnes.
Russia reported its spring wheat planting will be more than 26.6 million acres this year, an increase of almost 35 per cent from last year.
Farmers in Argentina are projected to plant 16.8 million acres of wheat in 2019, the country’s largest amount of acres in almost 20 years.
