By Glen Hallick, MarketsFarm
WINNIPEG, June 5 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Wednesday, due to planting progress in the United States, according to a Winnipeg-based analyst.
The July canola contract fell C$2.90 at C$450.20 per tonne. The November contract dropped C$3.40 at C$462.90 per tonne.
With a window of a few rain-free days, U.S. farmers were trying to plant as much as they could. That forced prices down on the Chicago Board of Trade and in turn spilled over to canola.
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Agriculture and Agri-Food Canada’s Drought Monitor reported 37 per cent of Western Canada is in a moderate to extreme drought. Over the last six months, Western Canada received only 60 per cent of its normal precipitation. Those dry conditions provided support, along with the technical bias, which was pointing to the upside.
There were 14,009 contracts traded on Wednesday, which compares with Tuesday when 13,725 contracts changed hands. Spreading accounted for 7,836 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 450.20 dn 2.90
Nov 462.90 dn 3.40
Jan 469.00 dn 3.40
Mar 474.40 dn 3.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were down on Wednesday as farmers in the U.S. Midwest and Plains have taken advantage of a few rain-free days to plant as much as possible.
An estimate from private consultant Dr. Michael Cordonnier projected the 2019 U.S. soybean crop to be 98 million to 103 million tonnes, on 84 million acres.
The U.S. Department of Agriculture releases its supply and demand report on June 11.
China still has 7 million tonnes of soybeans it has purchased that have not been shipped out of the U.S., due to transportation difficulties in the U.S. and the trade war between the two countries. Reports stated the soybeans will be stored for the meantime.
CORN futures were down on Wednesday, also due to planting progress.
Ethanol production in the U.S consumed about 11.18 million tonnes of corn in May.
Mexico, as a precaution against possible tariffs imposed by the U.S., purchased almost 2.27 million tonnes of corn from Brazil.
The USDA reported Ukraine’s corn crop should reach 33.0 million tonnes this year. That would be down from last year’s record harvest of 35.8 million tonnes.
WHEAT futures were also weaker on Wednesday due to spillover from soybeans and corn.
The International Grains Council estimated global wheat stocks for the 2019/20 crop year to reach 293.0 million tonnes. That’s up from the previous crop year’s 281.0 million tonnes.
Germany expects its wheat crop to rebound from last year’s severe drought. Expectations are for a 22 per cent increase in production to about 22.41 million tonnes.
