Posted Oct. 14th, 2020 by MarketsFarm Team
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WINNIPEG, Oct. 14 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were slightly stronger on Wednesday, recovering from losses earlier in the week.
Strong trade activity in front months was a feature in trading, as speculative buyers positioned ahead of the November contract’s expiry.
Canola found support from a stronger tone in comparable vegetable oils. Nearby Chicago soyoil contracts were up by about a quarter of a cent.
Strength in the Canadian dollar limited the upside for canola, as the dollar was around 76 U.S. cents at midday.
Harvest activity across the Canadian Prairies kept pressure on canola prices. According to the province’s most recent crop report, Manitoba’s canola crop is approximately 98 per cent harvested.
On Wednesday, 49,524 contracts were traded, which compares with Tuesday when 36,168 contracts changed hands. Spreading accounted for 41,706 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Wednesday, due to continued export demand.
This morning, the USDA announced a sale of 264,000 tonnes of soybeans, purchased by China.
Analysts expect 155.2 million to 167 million bushels of beans were crushed in September. The National Oilseed Producers Association (NOPA) will release the official numbers tomorrow.
The U.S. soybean harvest is 61 per cent complete, which is 14 points higher than the average rate. Dry weather in key growing regions has facilitated a quick harvest.
Some workers at ports in Argentina are striking, which may be causing some strength to soybean prices on a global level.
CORN futures were also stronger today, due to strong export demand.
This morning, the USDA announced a sale of 420,000 tonnes of corn, purchased by China.
The corn harvest is abut 41 per cent complete, according to the most recent crop progress report. Nationally, the corn crop is rated as 61 per cent good to excellent.
Globally, Taiwan purchased 65,000 tonnes of corn from Brazil, and South Korea’s corn tender for 60,000 tonnes was also filled from South America.
WHEAT futures were higher on Wednesday.
Winter wheat planting progressed 16 percentage points from last week; with 68 per cent of the 2021 crop planted, the crop is seven points ahead of average.