By Marlo Glass, MarketsFarm
WINNIPEG, Jan. 27 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Monday, as the outbreak of a coronavirus in China hampered financial markets by calling future demand needs into question.
The trader noted that although canola values dropped significantly, canola is doing rather well compared to United States markets. But canola “can’t resist being dragged lower” by soybean weakness.
Relative weakness to the Canadian dollar provided some support to canola values. The dollar was at 75.85 cents at midday.
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On Monday, 35,462 contracts were traded, which compares with Friday when 27,115 contracts changed hands. Spreading accounted for 23,982 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) started the week lower, pressured by concerns of “when and how many” soybeans China may buy. The recent viral outbreak has exacerbated that uncertainty.
The coronavirus outbreak in China has called future demand levels into question. These concerns were compounded by record-high soybean production levels in Brazil.
According to the United States Department of Agriculture (USDA), last week, soybean export inspections totaled just over 1 million tonnes. That’s slightly lower from the previous week, but is almost 10 per cent higher when compared to the same time last year.
Marketing year-to-date soybean shipments are at just over 25 million tonnes, which is about 5 million tonnes higher when compared to the same time last year.
CORN futures finished lower today, due to concerns of a global economic slowdown tied to China’s coronavirus.
This morning, the USDA reported a private export sale of just over 111,000 tonnes of corn, purchased by Japan.
In the Grain Inspections update for last week, the USDA reported that corn exports totaled just over 668,000 tonnes. That’s almost 69 per cent higher than the previous week.
Marketing year-to-date corn shipments total approximately 10 million tonnes, which is approximately half of last year’s pace.
The USDA supply demand report increased U.S. corn production numbers to total 13.692 billion bushels. In last month’s report, the projected total was 13.661 billion bushels.
WHEAT futures were mixed on Monday, weighed down by similar economic outlook concerns. Minneapolis Hard Red Wheat ended slightly higher while winter wheats incurred losses.
The USDA’s weekly export inspections report showed wheat exports totaled almost 224,000 tonnes last week.
Marketing year-to-date shipments were at 16.2 million tonnes, which remains ahead of last year’s pace.
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