By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 18 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Monday, amid light volumes due to the United States Markets being closed for the Martin Luther King Jr. holiday.
When the U.S. markets are closed canola either becomes very swingy or hardly budges, according to a trader. He said there was some profit-taking today as well.
The trader noted that canola needs to become much more expensive in light of tight ending stocks. In that higher prices are required in order to sharply curtail demand.
At mid-afternoon the Canadian dollar was lower at 78.41 U.S. cents after closing Friday at 78.57.
There were 8,178 contracts traded on Monday, which compares with Thursday when 26,502 contracts changed hands. Spreading accounted for 5,286 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Canola Mar 684.70 dn 3.10
May 666.00 dn 2.80
Jul 648.70 dn 3.50
Nov 550.30 dn 3.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were closed on Monday for the Martin Luther King Jr. holiday.
With the holiday, the United States Department of Agriculture (USDA) postponed its weekly export inspections report to Tuesday.
Despite dry conditions that hampered the planting of South American soybean crops as well as their growth, Brazil remains projected to harvest a record crop of 133 million tonnes. While Argentina won’t produce a record soybean crop, it’s expected to reap 47 million tonnes.
Three soy traders in Brazil – CJ Selecta, Caramuru and Imcopa – will halt trading soybeans grown on land that was deforested after August 2020.
Also in Brazil, independent truck drivers could go on strike as early as Feb. 1, according to Dr. Michael Cordonnier. The association representing about 4,500 drivers said fuel prices are too high. However, drivers in the agricultural areas are said to be leery about the strike just as the country’s soybean harvest is underway. In 2018, more than 20,000 drivers walked off the job for 10 days.
China said it imported a record amount of sorghum in 2020, at 4.8 million tonnes.
CORN futures were closed on Monday.
China reported that its 2020 corn imports hit a record 11.3 million tonnes. Reuters noted that one corn importer in China said the country could increase its 2021 imports to as high as 30 million tonnes.
WHEAT futures were closed on Monday.
SovEcon said that Russia could see its wheat exports for the current marketing year increase, despite the incoming export tax on wheat. Those farmers could sell more wheat ahead of the tax being implemented on Feb. 15. SovEcon expects wheat exports to be 37 million to 38 million tonnes, exceeding its previous projection of 36.3 million tonnes.
China reported its 2020 wheat imports hit a record 8.4 million tonnes, along with 8.1 million tonnes of barley.