WINNIPEG – ICE Futures canola contracts were weaker at the end of trading on Wednesday, as tensions between Canada and China has continued to weigh on values.
Canadian Prime Minister Justin Trudeau said on Tuesday he will consider sending a high-level delegation to China to discuss the ongoing situation between the two countries. His announcement came after China banned Viterra from selling canola to the country.
China took the action against Viterra yesterday in the same fashion it banned canola shipments from Richardson International earlier this month – in that Chinese authorities alleged they found hazardous pests in the shipments.
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The dispute stems from the arrest of Huawei executive Meng Wanzhou by Canadian authorities in December at the request of United States authorities. Meng is now facing extradition to the U.S., where she faces fraud charges.
The Canadian dollar was down at 74.57 U.S. cents by mid-afternoon on Wednesday, which provided some support.
Support also came from canola now being more competitive with other vegetable oils and improvements in the crush margins.
About 13,555 contracts were traded on Wednesday, which compares with Tuesday when approximately 24,000 contracts changed hands.
SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday.
Trade talks between the United States and China are set for Thursday and Friday in China, with a Chinese delegation travelling to the U.S. next week for further negotiations. While a final deal is still expected by the end of April, there are indications it might be delayed. U.S. President Donald Trump wants a deal completed no later than the 2020 Presidential Election, which kicks off early next year.
There are indications that tariffs the U.S. and China have imposed on each other in their trade war will not cease immediately with a final agreement. Rather, the tariffs could be gradually eliminated.
The U.S. Department of Agriculture releases two reports on March 29, its Prospective Planting report and its Grain Stocks report. Traders have been positioning themselves ahead of Friday.
The American Farm Bureau has estimated there is US$76 billion of corn and soybeans in the Mississippi and Missouri River basins that could be at risk to flooding. The National Oceanic and Atmospheric Administration has forecast unprecedented flooding this spring in those basins.
CORN futures were also weaker on Wednesday, as Ukraine’s exports are up. As of March 21, Ukraine’s exports stand at 302.3 million tonnes for an increase of 22.7 per cent year-over-year.
WHEAT futures were stronger on Tuesday on news that Russia’s wheat exports were down. The country’s exports dell 5.2 per cent in 2018-19 compared to a year ago. Russia expects to export 486.1 to 499.7 million tonnes of wheat this marketing year.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was down 53 cents at US$59.41 per barrel.
In the afternoon, the Canadian dollar was trading around US74.55 cents, down from 74.70 cents the previous trading day. The U.S. dollar was C$1.3414.
Winnipeg ICE Futures Canada dollars per tonne.
Canola May 19 451.40s -0.30 -0.07%
Canola Jul 19 459.20s -0.60 -0.13%
Canola Nov 19 471.20s -0.80 -0.17%
Canola Jan 20 478.00s -1.00 -0.21%
Canola Mar 20 483.30s -1.00 -0.21%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.
Chicago
Soybean May 19 887-4s -13-2 -1.47%
Soybean Jul 19 901-0s -13-2 -1.45%
Soybean Aug 19 907-4s -12-6 -1.39%
Soybean Sep 19 913-2s -12-0 -1.30%
Soybean Nov 19 923-2s -11-4 -1.23%
Soybean Meal May 19 304.4s -6.6 -2.12%
Soybean Meal Jul 19 308.3s -6.5 -2.06%
Soybean Meal Aug 19 310.0s -6.3 -1.99%
Soybean Oil May 19 28.82s +0.17 +0.59%
Soybean Oil Jul 19 29.14s +0.16 +0.55%
Soybean Oil Aug 19 29.27s +0.16 +0.55%
Corn May 19 373-6s -3-4 -0.93%
Corn Jul 19 383-4s -3-4 -0.90%
Corn Sep 19 390-4s -2-6 -0.70%
Corn Dec 19 398-0s -2-2 -0.56%
Corn Mar 20 408-2s -2-0 -0.49%
Oats May 19 269-6s -3-2 -1.19%
Oats Jul 19 268-2s -2-0 -0.74%
Oats Sep 19 263-0s +0-2 +0.10%
Oats Dec 19 256-4s -1-2 -0.48%
Oats Mar 20 255-2s +0-4 +0.20%
Wheat May 19 469-4s +0-2 +0.05%
Wheat Jul 19 475-0s +0-4 +0.11%
Wheat Sep 19 483-2s +0-6 +0.16%
Wheat Dec 19 497-4s +0-4 +0.10%
Wheat Mar 20 509-6s -0-2 -0.05%
Minneapolis
Spring Wheat May 19 567-6s +0-4 +0.09%
Spring Wheat Jul 19 566-6s +0-2 +0.04%
Spring Wheat Sep 19 571-4s +1-2 +0.22%
Spring Wheat Dec 19 582-2s +1-6 +0.30%
Spring Wheat Mar 20 594-0s +2-6 +0.47%
Kansas City
Hard Red Wheat May 19 444-4s +1-2 +0.28%
Hard Red Wheat Jul 19 452-2s +1-2 +0.28%
Hard Red Wheat Sep 19 464-0s +1-0 +0.22%
Hard Red Wheat Dec 19 484-0s +1-2 +0.26%
Hard Red Wheat Mar 20 500-6s +1-2 +0.25%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 19 126.250s -0.650 -0.51%
Live Cattle Jun 19 119.600s -1.125 -0.93%
Live Cattle Aug 19 116.650s -0.925 -0.79%
Feeder Cattle Mar 19 142.125s -0.625 -0.44%
Feeder Cattle Apr 19 145.900s -0.325 -0.22%
Feeder Cattle May 19 149.525s -0.275 -0.18%
Lean Hogs Apr 19 81.325s +1.600 +2.01%
Lean Hogs May 19 86.675s +0.025 +0.03%
Lean Hogs Jun 19 94.800s -0.525 -0.55%
