By Glen Hallick, MarketsFarm
WINNIPEG, July 10 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Wednesday, which saw the weather and the Canadian dollar weigh on values.
Southern Manitoba received 65 to 140 millimeters of rain Tuesday into Wednesday morning. The Prairie weather forecast has called for rain over parts of Saskatchewan and Alberta, with the system moving into northern Manitoba on Thursday.
The Canadian dollar has been moving upward, with the loonie at 76.45 U.S. cents.
Losses were tempered by gains in the soy complex at the Chicago Board of Trade.
Read Also
ICE canola retreats
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange took a step back of Wednesday morning amidst mixed sentiment…
There were 8,583 contracts traded on Wednesday, which compares with Tuesday when 11,842 contracts changed hands. Spreading accounted for 2,550 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 445.80 dn 3.00
Jan 452.90 dn 2.60
Mar 459.50 dn 2.40
May 465.00 dn 2.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Wednesday, ahead of tomorrow’s World Agricultural Supply and Demand Estimates (WASDE) from the United States Department of Agriculture (USDA).
New crop contracts picked up eight and a half cents per bushel today.
For the WASDE report, the markets estimated the 2018/19 soybean carryout to be approximately 28.75 million tonnes, a drop of about 380,000 tonnes from June’s report. The markets also predicted new crop ending stocks to be almost 22.60 million tonnes, a decline of about 5.85 million tonnes compared to last month. Also, expectations have called for soybean acres of 78.10 to 83.20 million acres, with yields of 47 to 51 bushels per acre.
While the Trump administration wants China to import more U.S. agricultural goods, the Asian superpower still has 5.44 million tonnes of old crop soybeans in the U.S. waiting to be shipped. Reports stated that China would make additional the purchases if the U.S. eased its restrictions on technology giant Huawei.
CORN futures were up on Wednesday by two and a half cents bushel on spillover from soybeans.
Market expectations in tomorrow’s supply and demand report are for 76.2 million to 84.3 million acres of corn, with yields of 162 to 167 bushels per acre.
There is a discrepancy between the USDA and the U.S. attaché’s estimate of China’s corn crop. The USDA projected 254.0 million tonnes, but the attaché pegged it at 230.0 million tonnes. This could indicate China might need to import more corn, according to a report. However, the amount may not as much as expected as African swine fever has reduced China’s demand.
WHEAT futures were higher on Wednesday, with gains of at least two cents per bushel for Chicago, Kansas City and Minneapolis bids.
The markets projected a wheat carryout of 28.25 million tonnes, down by more than 925,000 tonnes from the USDA’s previous report.
After three years of drought, Australia’s wheat crop is expected to bounce back somewhat. After producing 17.2 million tonnes last year, the country is poised to harvest 21.5 million tonnes in 2019.
