WINNIPEG, Dec. 2 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished lower on Monday, following pricing trends set last week.
Canola values were dragged down by lower prices for Malaysian palm oil and soybeans on the Chicago Board of Trade. One trader said “the shine has come off of the vegetable oil complex.” Canola prices have been lower in order to remain globally competitive.
The Canadian dollar has remained steady recently, at around 75.2 U.S. cents, providing some support to canola values.
Trade relations remain strained between China and Canada. Recently, China’s ambassador to Canada visited Huawei executive Meng Wanzhou. The ambassador has called for Canada to release Meng. It would appear that China won’t be importing canola directly from Canada any time soon, though there are reports that Canadian canola has come into China via the United Arab Emirates.
On Monday, 24,313 contracts were traded, which compares with Friday when 14,688 contracts changed hands. Spreading accounted for 14,318 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Monday.
Export data from the United States Department of Agriculture (USDA) was mostly positive. Last week, 1.5 million tonnes of soybeans were exported. Over a million tonnes were shipped to China.
U.S. President Donald Trump said signing legislation in support of protestors in Hong Kong has not helped trade talks with mainland China. He said China still wants a deal with the U.S., but did not indicate when a deal might be finalized. Some U.S. officials have said a deal could possibly happen before the end of the year. Phase one of the trade deal was supposed to be signed in November.
CORN futures finished slightly higher, despite reports indicating perpetually lower export rates. Total exports so far for the marketing year are around 6 million tonnes, which compares to this time last year, when they were around 14 million tonnes.
WHEAT futures were lower on Monday. Export sales were lower last week, at around 245,000 tonnes.
The Australian government has cut the expected wheat production for 2019/2020 by 18 per cent to 15.85 million tonnes, due to prolonged dry weather.
Also, France and the United Kingdom expected acreage for next year’s wheat crops to be lower, due to a particularly rainy fall. The heavy autumn rain came after an unexpectedly dry summer hampered rapeseed yields and delayed winter wheat and barley planting.