By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 19 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished higher on Tuesday with support from Chicago soyoil and a lower Canadian dollar.
The loonie was down mid-afternoon Tuesday at 75.37 U.S. cents, after closing Monday at 75.68.
Soyoil on the Chicago Board of Trade gained almost a third of a cent.
A Winnipeg-based trader noted canola remains range-bound despite recent gains.
Shortly after midnight on Tuesday, 3,200 members of the Teamsters Canada Rail Conference went on strike at Canadian National Railway. The conductors, train workers and yard workers have been without a contract since July. As talks between the union and CN are ongoing there has been speculation that if the strike last more than a few days the federal government could put forth back-to-work legislation.
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There were 18,937 contracts traded on Tuesday, which compares with Monday when 14,904 contracts changed hands. Spreading accounted for 13,454 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 465.20 up 1.70
Mar 474.10 up 1.90
May 481.90 up 1.50
Jul 488.90 up 1.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly higher on Tuesday, as buying increased in the market.
The soybean harvest in the United States reached 91 per cent, according to the weekly crop progress report issued by the U.S. Department of Agriculture (USDA) on Monday. It was a six-point gain from the previous and was four points back of the five-year average. Also, progress for the week ending Nov. 17 was on par with the same time last year.
AgRural reported soybean planting in Brazil reached 67 per cent complete. That was three points below the average and 15 behind last year.
CORN futures were higher on Tuesday, taking its cue from soybeans.
The crop progress report said the U.S. corn harvest was at 76 per cent complete, which was a gain of 10 points from the previous week. However, it was 16 behind the five-year average of 92 per cent complete. This time last year the harvest was 89 per cent finished.
North Dakota, which was at 15 per cent done last week, made it to 23 per cent. The state’s five-year average was 85 per cent complete. Michigan, South Dakota and Wisconsin were also well behind, ranging from 39 to 53 per cent finished.
A propane shortage has affected eight U.S. states. The governors of Iowa, Illinois, Indiana, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin declared states of emergency. Farmers needing propane for their grain dryers have been faced stiff competition from home heating demands.
The USDA announced a sale of 191,000 tonnes of corn to unknown destinations on Tuesday.
Corn planting in Argentina was 44 per cent complete, according to the Buenos Aires Grain Exchange.
WHEAT futures were steady to higher on Tuesday, with gains for Chicago and Kansas City while Minneapolis was unchanged.
The planting of winter wheat hit 95 per cent done, according to the USDA. That was an improvement of three points from the previous report and is on pace with the average. Approximately 83 per cent of the crop has emerged, for a gain of five from last week and was three under the pace. The condition rated as 52 per cent good to excellent, a decline of two points from last week.
Japan is on its way in ratifying its trade deal with the U.S. Japan’s lower house of parliament passed the deal and it now goes to the upper chamber, where it’s expected to be approved as well. Once ratified, the agreement will shave off US$7 billion in tariffs on U.S. agricultural goods, including wheat.
