By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 18 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished steady to higher on Monday, as support from Chicago soyoil edged out a stronger Canadian dollar.
The Canadian dollar was slightly higher mid-afternoon Monday at 75.69 U.S. cents, after closing Friday at 75.58.
Meanwhile soyoil at the Chicago Board of Trade gained approximately a fifth of a cent.
A Winnipeg-based trader stated the market is expected to remain range bound for the time being. He also noted that the Commitment of Traders indicated speculators have a sizeable short covering at this point.
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Hot on the heels of Canadian National Railway having announced the layoffs of 1,600 workers across North America on Friday, the company could see 3,200 workers in Canada go on strike. After six months of negotiations without reaching a new deal, the members of the Teamsters Canada Rail Conference gave their notice over the weekend of their intention to hit the picket lines as early as Tuesday.
There were 14,904 contracts traded on Monday, which compares with Friday when 12,334 contracts changed hands. Spreading accounted for 12,392 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 463.50 up 1.00
Mar 472.20 up 0.80
May 480.40 up 0.60
Jul 487.50 up 0.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Monday, due to the pending United States/China trade deal.
The markets needed clarity in regards to the deal. As Phase One remains unsigned, negotiators have been discussing matters. The U.S. wants China to stick with a set volume of agricultural purchases. Also, President Donald Trump threatened not to roll back tariffs as previously agreed to. China said it’s concerned that such a provision could hurt its trading relations with other countries. The lack of a trade deal will reportedly plunge the global economy into a recession.
The U.S. Department of Agriculture (USDA) reported soybean export inspections were 1.532 million tonnes for the week ended Nov. 14. That’s up from the 1.110 million tonnes this time last year. So far in the current marketing year, soybean export inspections were at 12.436 million tonnes, almost 12.15 per cent ahead of the pace last year.
CORN futures were lower on Monday, due to technical selling and demand worries.
The USDA said export inspections were a little short of 637,400 tonnes. That’s well below the 845,960 tonnes at this time last year. To date, inspections have reached 4.980 million tonnes, almost 58.5 per cent below last year’s pace.
Ukraine’s Agriculture Ministry reported that it has exported 5.8 million tonnes of corn so far in 2019/20.
WHEAT futures were mixed on Monday, while moderate gains for Chicago, small gains for Kansas City and slight losses for Minneapolis.
Export inspections of wheat tallied a little more than 449,300 tonnes for the week, which was about 90,000 tonnes under the amount for the same period last year. Overall, inspections hit 11.920 million tonnes, which was 21.4 more than this time last year. However, U.S. wheat is still confronted with strong global competition and has lost out on several contracts.
Ukraine said its wheat exports reached 12.6 million tonnes in 2019/20, for an increase of about 8.4 million last year.
