WINNIPEG, Nov. 6 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished steady on Wednesday, after trading higher earlier in the day.
Though China has begun importing Canadian pork and beef again, relations remain chilly regarding canola imports. China’s hog population decreased by nearly 40 per cent due to African Swine Fever, necessitating pork imports from other countries.
The Canadian dollar dipped below 76 U.S. cents on Wednesday afternoon, providing some support to canola values.
Malaysian palm oil prices have been stronger this week due to reduced supply and tightening world stocks. That’s also given some strength to canola prices.
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The United States Department of Agriculture (USDA) World Agriculture Supply Demand Estimates (WASDE) will be released on Nov. 8. Some experts are anticipating soybean production to be revised slightly downward, which would be supportive of canola values.
On Wednesday, 20,542 contracts were traded, which compares with Tuesday when 15,330 contracts changed hands. Spreading accounted for 11,168 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday ahead of the World Agriculture Supply Demand Estimates (WASDE) from the United States Department of Agriculture (USDA).
Some market participants expect soybean production to be revised slightly downward in the report, which will be released on Friday. That would provide an upside to the soybean complex.
Traders are estimating soybean export sales to be between 600,000 and 1.2 million tonnes during the week ended Oct. 31.
Though phase one of a trade deal between the U.S. and China was expected to be signed by mid-November the two leaders may not be able to agree on where to sign it, delaying the deal until December. Two U.S. locations were proposed and subsequently ruled out. Locations in Asia and Europe are being considered, with no date in place. The trade war has dragged down both countries’ economies.
CORN futures were lower today due to quiet export demands. Traders are estimating weekly export sales to range from 300,000 to 650,000 tonnes for the week prior.
The National Corn Growers Association has urged its members to tell Congress to prioritize the USMCA ratification. The trade deal would replace the North American Free Trade Agreement between the U.S., Canada, and Mexico. In 2018, Canada and Mexico imported over 21 million tonnes of U.S. corn and corn products, totaling over US$4.5 billion dollars.
WHEAT futures were mixed on Wednesday, with Chicago wheat in the green and Kansas City Hard Red and Minneapolis Spring showing losses.
Wheat export sales for the week ended Oct. 31 were between 350 and 550 thousand tonnes.
The European Union has raised its wheat production estimate to 147 million tonnes, up from their previous estimate of 145 million tonnes.
Market analysts expect world ending stocks to be around 287 million metric tonnes.
