By Marlo Glass, MarketFarm
WINNIPEG, March 31 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished mixed on Tuesday, with strength in nearby contracts due to short covering.
Earlier in the day, rumours swirled regarding China increasing its Canadian canola imports. However, the Western Producer confirmed that China will continue to block shipments from Richardson International and Viterra Inc.
Canola seed shipments from other companies will continue to be delivered to China, with a lowered dockage rate of one per cent.
“We’ve seen promising signs of positive relations on specific issues,” Canadian Prime Minister Justin Trudeau told reporters when asked about progress on canola trade with China.
“We’re going to continue working to try and ensure that our farmers, our manufacturers, our exporters, continue to have access to the markets around the world even in this difficult time.”
Strength in the Canadian dollar weighed on canola values. The dollar started the day under 70 U.S. cents, but increased by nearly a penny at midday.
On Tuesday, 40,578 contracts were traded, which compares with Monday when 25,028 contracts changed hands. Spreading accounted for 30,562 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Tuesday, following prospective planting estimates from the United States Department of Agriculture (USDA).
Soybean acreage is expected to be 10 per cent higher this year, totalling 83.5 million acres. That’s slightly lower than market expectations, and was supportive of soybean values.
The USDA also released grain and oilseed stocks as of March 1. Soybean stocks have dropped by 17 per cent to total 2.25 billion bushels, which was higher than market expectations.
CORN futures were slightly weaker on Tuesday.
This morning, the USDA announced a sale of 113,000 tonnes of corn, purchased by Japan.
The USDA said corn stocks are at 7.95 billion bushels, which was lower than trade expectations.
WHEAT futures were mixed on Tuesday, with Chicago May wheat showing small losses while Kansas City and Minneapolis gained strength.
Marketing year to date wheat shipments are ahead of last year’s pace by approximately 1.6 million tonnes.
The USDA called for planted wheat acres to slip one per cent in 2020 to 44.66 million. That’s the lowest amount since 1919.
The USDA pegged total wheat stocks at 1.41 billion bushels, which is 11 per cent lower than the previous year and on par with average market prediction of 1.43 million.