WINNIPEG, Nov. 27 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished higher on Wednesday, recovering from losses earlier in the week.
One Winnipeg-based trader said canola was “due for a bounce” after incurring losses over several days. Canola prices are expected to be mostly range-bound for the next few weeks.
The price rebound was supported by small gains in soy oil on the Chicago Board of Trade, though markets in the United States are quiet ahead of the Thanksgiving holiday.
The announcement that CN Rail Employees will return to work after a weeklong strike provided some optimism to canola prices. A prolonged strike could have impacted canola supply chains to export markets.
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A slightly stronger Canadian dollar kept a lid on canola prices. The dollar was around 75.28 U.S. cents at midday.
On Wednesday, 14,133 contracts were traded, which compares with Tuesday when 22,485 contracts changed hands. Spreading accounted for 10,180 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, as there is still no concrete deal for Phase One of the trade agreement between the United States and China. The delay may be due to the fact that U.S. President Donald Trump has said Washington stands with protesters in Hong Kong, who have been demonstrating against mainland China for months.
“We’re in the final throes of a very important deal, I guess you could say one of the most important deals in trade ever. It’s going very well but at the same time we want to see it go well in Hong Kong,” President Trump said in press conference.
Soybeans were also pressured by competitive global prices. A lower Brazilian currency has supported their export markets significantly, and the United States Department of Agriculture (USDA) expected total soybean exports from Brazil to total 76 million tonnes.
CORN exports from Brazil are also expected to be 80 per cent higher than the previous year, totaling 41 million tonnes, according to a private grain exporting group.
U.S. corn futures were weaker, despite increased demand for both exports and ethanol.
The USDA reported that South Korea purchased 69,000 tonnes of corn earlier this week.
Last week, ethanol production was higher for the tenth consecutive week at 1.059 million barrels per day. Ending stocks were at just over 20 million barrels.
WHEAT futures were lower on Wednesday, pressured by competitive global prices.
The weekly crop progress report showed the winter wheat crop is 87 per cent emerged, which is just slightly behind the average rate.
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