By Ashley Robinson, Commodity News Service Canada
Winnipeg, Jan. 9 (CNS Canada) – The ICE Futures canola contacts closed slightly weaker Wednesday, as contracts continued to lag on the soy complex.
Chicago Board of Trade (CBOT) soybean, oil and meal contracts were all stronger. The soy complex found support from positive news out of the China and United States trade talks. The talks wrapped up today after three days of negotiations. China released a vague statement pledging to buy a ‘substantial amount’ of U.S. goods.
Oilseed contracts are still finding support from South American crops. AgRural cut its Brazilian soybean estimate to 116.9 million tonnes from 121.4 million tonnes, due to the hot and dry weather. Conab releases its new numbers Thursday morning. There is also still concern about how the rain Argentina has received is affecting the crop there.
About 12,752 canola contracts traded, which compares with Tuesday when 8,645 contracts changed hands. Spreading accounted for 6,186 of the contracts traded.
Brazil received better than expected rains overnight, with parts of Parana, Rio Grande do Sul, and Paraguay regions receiving precipitation.
Departamento de Economia Rural (DERAL) in Brazil is reporting that the soybean harvest in the Parana region is five per cent done, which is a record pace. Conditions are rated at 58 per cent good, 30 per cent average and 12 per cent bad, all of which are down from last year.
CBOT corn prices finished the day in the green.
The U.S. weekly ethanol report is still being released despite the shutdown. Today’s report showed ethanol production was at one million barrels per day this week, down 11,000 barrels from the previous week. Stock rose to 23.3 million barrels from 23.2 million barrels.
DERAL is reporting that Brazil’s Parana first crop corn condition is down to 74 per cent good, 24 per cent fair, and two per cent poor.
Wheat futures in the U.S. finished the day mixed.
Egypt has two wheat tenders out today, one for Feb. 20 to 28 shipment, and one for March 1 to 10 shipment.
Algeria bought 550,000 tonnes of wheat at US$261 per tonne and it likely was from Argentina and France.
FranceAgriMer has lowered its estimate for French wheat exports this year to 8.7 million tonnes from 8.8 million tonnes, with ending stocks up 100,000 tonnes to 2.8 million tonnes.