By Glen Hallick, MarketsFarm
WINNIPEG, May 6 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Monday, for a seventh consecutive session of losses.
ICE and the Chicago Board of Trade dropped today following a tweet by U.S. President Donald Trump, in that he would hike tariffs on imports from China. Trump accused China of dragging out trade negotiations and unless the pace picked-up he would slap on more tariffs.
A Winnipeg-based trader stated the markets had “a giant overreaction.” However, the lack other fresh news, the ongoing Canada/China dispute, the strong likelihood of more soybean acres in the U.S. and the huge South American soybean harvest continued to weigh on values.
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On Tuesday, Statistics Canada will release its report on grain and oilseed stocks as of March 31. Expectations are for the report to have little impact on prices.
There were 22,218 contracts traded on Monday, which compares with Friday when 14,952 contracts changed hands.
SOYBEAN, soyoil and soymeal futures at the Chicago Board of Trade (CBOT) were all weaker on Monday, as a tweet by United States President Donald Trump had a negative effect on prices.
In a May 5 tweet, Trump accused China of dragging out trade negotiations between the two countries and he threatened to hike tariffs on Chinese imports from 10 to 25 per cent. Also, Trump said he would impose new tariffs on Chinese imports that so far have been exempt.
Soybean bids for July and November lost about 12 U.S. cents per bushel on Monday. Soyoil was down 0.22 of a cent and soymeal slipped US$1.60 per hundredweight.
Abiove revised its forecast of the Brazilian soybean harvest upward to by 0.6 per cent to 117.6 million tonnes and with a carryout of 5.63 million tonnes.
The European Union has imported more than 12.4 million tonnes of soybeans as of May 5, for a nine per cent increase year-over-year.
CORN futures were down on Monday, having been caught in the collateral damage from soybeans. July corn dropped 6.5 cents per bushel.
The U.S. Department of Agriculture is scheduled to release its planting progress report Monday afternoon. Market expectations are for an increase to 25 per cent complete for corn from the previous week’s 15 per cent.
EU corn imports dropped 38 per cent year-over-year, at 20.5 million tonnes.
WHEAT futures were mixed on Monday, with the July contracts Minneapolis and Chicago both losing 0.75 of a cent per bushel. The July contract in Kansas City picked up 1.5 cents per bushel.
Ahead of the USDA’s report, expectations are for spring wheat planting to reach 24 per cent complete.
EU soft wheat exports are down four per cent at about 17.1 million tonnes.
