WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished mostly higher on Wednesday, following pricing trends set earlier in the week.
One Winnipeg-based trader said canola is supported by strong crush margins.
Although China’s Vice Premier will be in Washington next week to sign phase one of the U.S./China trade deal, there is no fresh news regarding trade negotiations between China and Canada.
A weaker Canadian dollar also boosted canola prices. At midday, the dollar was at 76.3 U.S. cents, which is about half a cent lower compared to last week.
On Thursday, 23,720 contracts were traded, which compares with Wednesday when 26,735 contracts changed hands. Spreading accounted for 17,038 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday, giving back some gains from earlier in the week.
Trade estimates ahead of the weekly export sales report from the United States Department of Agriculture (USDA) have soybean sales ranging from 400,000 to 800,000 tonnes last week. The export sales report was delayed due to inclement weather shutting down some government offices earlier in the week.
Brazil’s latest prediction for the country’s soybean crop is just over 122 million tonnes, which would set a record for the country’s soybean output.
In the World Agricultural Supply Demand Estimates (WASDE) report tomorrow, market participants are expecting Argentina’s soybean crop estimates to be lower by about 200,000 tonnes.
CORN futures finished slightly lower today. Export sales are expected to range from 350,000 to 700,000 tonnes.
Market participants also expect the WASDE to lower corn production volumes. The corn crop is estimated to total about 13.5 billion bushels.
WHEAT futures were stronger on Thursday. Estimates ahead of the weekly export sales report range from 200,000 to 550,000 tonnes.
Analysts expect the WASDE to show reduced ending stocks for wheat in both the U.S. and the world. Estimates ahead of the report peg U.S. wheat ending stocks to be around 970.5 million bushels, and world wheat ending stocks at 287.8 million tonnes.