By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 28 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Monday, as increased amounts of canola have entered the commercial pipeline.
Approximately 1.3 million tonnes of canola have entered the commercial pipeline during the last two weeks, according to Canadian Grain Commission data. As the fall harvest presses on, more canola will follow.
About 80 per cent of canola across the Prairies has been harvested, according to the weekly provincial crop reports. Another analyst said it’s likely that part of the remaining 20 per cent still in the fields will be combined in the spring. As to how much remains uncertain.
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Canola also felt pressure from lower soyoil prices on the Chicago Board of Trade.
The Canadian dollar was steady at mid-afternoon Monday at 76.58 U.S. cents, after closing Friday at 76.55.
There were 25,895 contracts traded on Monday, which compares with Friday when 31,844 contracts changed hands. Spreading accounted for 20,312 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 452.40 dn 2.60
Jan 461.10 dn 2.30
Mar 470.40 dn 2.10
May 478.50 dn 1.90
May 484.40 dn 3.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were steady to higher on Monday, due to good export inspection data.
The United States Department of Agriculture’s (USDA) weekly inspections reported 1.57 million tonnes of soybeans were shipped during the week ended Oct. 24. That’s close to 18 per cent more than the previous week. Overall to date, 8.06 million tonnes have been exported and that’s almost 16 per cent ahead of this time last year.
Ahead of the USDA’s weekly crop progress report, market expectations are for the soybean harvest to reach 64 to 68 per cent complete. That would be behind the five-average of 76 per cent finished.
Despite numerous positive news reports regarding the partial deal, traders have become more impatient with the lack of a signed deal or some kind of hard results between the U.S. and China.
In the Brazilian state of Mato Grasso, soybean planting rose from 42 to 64 per cent complete as of last week. The average pace is 58 per cent.
The Philippines purchased 120,000 tonnes of U.S. soymeal and to be delivered between January and March of next year.
CORN futures were lower on Monday, getting spillover from losses in wheat and poor export data.
In the weekly USDA inspections, more than 380,600 tonnes of soybeans were shipped last week. That was a drop of more than 34 per cent from the previous week. To date, about 3.47 million tonnes have been shipped and that’s 60 per cent less than this time last year.
Market expectations are for the U.S. corn harvest to be 40 to 45 per cent complete. The five-average is 61 per cent done.
There’s uneasiness among Argentina farmers following the election of a center-left government on Sunday, as incoming president Alberto Fernandez had former president Cristina Fernandez de Kirchner as his running mate. During her eight years as president she enacted strict limits on corn and wheat exports that angered many farmers.
WHEAT futures were weaker on Monday, due poor export inspections.
About 523,260 tonnes of wheat were exported last week. To date 10.60 million tonnes have been shipped, down nearly 10 per cent from the previous week. However, it’s almost 33 per cent ahead of this time in 2018.
Trade estimates placed the planting of U.S. winter wheat at approximately 85 per cent complete. There has been speculation that the amount of acres could be at a 100-year low due to late soybean and corn harvesting.
The Buenos Aires Grain Exchange dropped its estimate for Argentina’s wheat production in 2019/20 from 21.0 million to 19.8 million tonnes. Some private firms believe production could fall to 18.5 million tonnes.
