By Marlo Glass, MarketFarm
WINNIPEG, May 28 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Thursday, due to a lack of supportive news from outside markets.
After a British Columbian judge ruled the extradition case against Huawei executive Meng Wanzhou could continue, China accused Canada of acting as an “accomplice” to the United States.
China’s imports of Canadian canola have decreased by about 60 per cent compared to years prior, and there are rumours they will decrease further.
Continued strength in the Canadian dollar kept pressure on canola prices. The dollar was around 72.6 U.S.cents at midday.
On Thursday, 14,439 contracts were traded, which compares with Wednesday when 17,774 contracts changed hands. Spreading accounted for 10,290 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday, due to a lack of support from low export demand.
There are reports that China is purchasing Brazilian soybeans instead of U.S. soybeans due to cheaper prices and weakness in Brazil’s currency. However, Brazil has been hit hard by the COVID-19 pandemic, and may be forced to close shipping ports in order to stop the spread of the virus.
CORN futures were stronger today, as economies re-open and demand for ethanol returns.
Data from the Energy Information Administration showed higher production and lower stocks last week. Ethanol stocks totalled just over 23 million barrels, which is the smallest stockpile since January.
WHEAT futures were mixed on Friday.
The European Commission has lowered wheat production forecasts for the European Union by over 4 million tonnes, to total 121 million tonnes.
The Commission also cut exports from the E.U. to total 26.5 million tonnes. The May World Agriculture Supply Demand Estimates (WASDE) expected exports from the EU to total 28 million tonnes.
Ukraine’s wheat crop is expected to total 26.7 million tonnes, which is slightly below previous predictions from the USDA.