By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 20 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker Friday, due to downward pressure from the Chicago soy complex.
The complex dropped as United States President Donald Trump said China must do more than buy more U.S. farm goods to get a trade deal. He also stated an interim trade deal is now off the table for next month’s top-level negotiations.
The Prairie canola harvest has continued at slow pace. According to this week’s crop reports, Manitoba farmers were 40 per cent complete, while Alberta and Saskatchewan growers were at six per cent. A turn of good weather for next week should result in great improvements.
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The Canadian Grain Commission reported that 32,000 tonnes of canola was exported for the week ended Sept. 15. That was a 70 per cent drop from the previous week’s exports.
The Canadian dollar was lower at mid-afternoon Friday at 75.32 U.S. cents after closing yesterday at 75.42.
There were 16,987 contracts traded on Friday, which compares with Thursday when 26,716 contracts changed hands. Spreading accounted for 10,914 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 447.40 dn 3.50
Jan 455.80 dn 3.80
Mar 464.00 dn 4.30
May 471.70 dn 4.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Friday, due to developments in the United States/China trade war.
Trade talks between deputy negotiators from the U.S. and China continued with most of the discussions devoted to agriculture. Meanwhile, President Donald Trump stated China needs to do more than buy U.S. farm goods to get a trade deal. Furthermore, Trump has ruled out an interim agreement for October’s top-level negotiations and said he doesn’t need a deal prior to the 2020 U.S. elections. In turn, the Chinese trade delegation cut short its tour of farms in the Midwest.
A report from the U.S. Department of Agriculture (USDA) stated that farm debt has climbed to nearly US$416 billion, for the highest levels since the early 1980s.
Precipitation from Tropical Storm Imelda has been forecast to dump heavy rain on the U.S. Midwest, while the eastern Corn Belt is expected to remain dry.
There have been reports that estimated the 2020 U.S. soybean crop to be 85.0 million acres, up from this year’s 80.0 million.
CORN futures were lower on Friday on spillover from soybeans.
Reports estimated the 2020 U.S. corn crop to be 95.0 million acres, up from this year’s 91.7 million.
A Taiwan trade delegation signed an agreement with the U.S. to purchase 5 million tonnes of corn and 500,000 tonnes of dried distillers grains over the next two years.
Corn yields in Ukraine were reported to be 95.0 bushels per acre, up eight per cent from last year.
WHEAT futures were mixed on Friday, with losses for Chicago and Kansas City and gains for Minneapolis.
With the wet conditions across the Northern Plains, the U.S. spring wheat harvest has been delayed, which has created concerns the crop could lose its quality.
Cocreal increased its estimate of the European Union wheat crop to 143.3 million tonnes for a gain of 3.0 million.
IKAR has maintained its estimate of Russia’s wheat production at 75.0 million tonnes. The most recent report from the USDA put Russian wheat at 72.5 million tonnes.
