North American Grain/Oilseed Review: Canola finishes steady

By Glen Hallick, MarketsFarm

WINNIPEG, March 20 (MarketsFarm) – ICE Futures canola contracts posted very small gains at the end of trading on Wednesday.
The technical bias has continued to remain on the upside, and traders used the weakness in canola as a buying opportunity. Also, canola has become more competitive with vegetable oils.

A lack of fresh export demand and news will hamper any bounces in canola prices. Sagging exports of canola need to pick up, which requires that needs a resolution to tensions between Canada and China, said a trader.

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The Canadian dollar moved above 75 U.S. cents on Wednesday.

SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday.

A lack of progress on trade talks between the U.S. and China had the markets wary. U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin will travel to China next week in hopes for jump starting negotiations. Afterward, Chinese Vice-Premier Lui He will come to the U.S. for further negotiations.

CORN futures were steady on Wednesday. Wet conditions in the United States could see farmers there switch their planting intentions from corn to soybeans. There has been flooding in a number of states, and Nebraska has already incurred $1 billion in damages.

The U.S. Department of Agriculture is scheduled release its Prospective Planting and Grain Stocks report on March 29.

WHEAT futures were stronger on Wednesday. The U.S. and Brazil reached a trade deal yesterday, which will allow the U.S. to export 750,000 tonnes of wheat to Brazil, free of that country’s tariffs.

Russian wheat exports are reported to have slowed since the start of their marketing year. Exports have dropped from as high as 4.5 million tonnes at the start, to 2.0 million tonnes during January and February, to an estimated 1.8 million tonnes for March.

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