By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 21 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts continued upward on Wednesday with some months witnessing new highs.
As the expiry for the November contract approaches, traders are still rolling out and into the January contract.
Improved demand has also been providing support to canola. Exports are up nearly 50 per cent compared in 2020/21 to this time in 2019/20, according to the Canadian Grain Commission.
At mid-afternoon, the Canadian dollar wasn’t providing much influence on canola prices. The loonie was relatively steady at 76.18 U.S. cents, compared to Tuesday’s close of 76.12.
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Manitoba Agriculture issued its seasonal summary and the overall harvest across the province stood at 98 per cent finished as of Oct. 20. The canola harvest reached 99 per cent complete.
There were 44,941 contracts traded on Wednesday, which compares with Tuesday when 46,326 contracts changed hands. Spreading accounted for 32,846 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 548.70 up 10.70
Jan 548.80 up 7.10
Mar 550.10 up 3.70
May 547.50 up 2.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Wednesday, due to weather concerns.
Snow and rain across the United States High Plains and Midwest has slowed the remaining harvest. Dry conditions in Brazil have stymied soybean planting there, but a report stated that seeding could reach 60 per cent complete over the next two weeks.
In Argentina, negotiations between the country’s labour ministry and the union representing oilseed workers are at a standstill. That led to the workers returning to the picket lines.
CORN futures were higher on Wednesday, also due to weather delaying the U.S. harvest.
The U.S. Bioenergy Statistics quarterly report said yesterday that 4.58 billion bushels of corn were used for ethanol production in 2019/20. That was nearly 35 per cent of all corn consumed in the U.S. during the year, marking the lowest level since 2008/09. The reduction was due to the COVID-19 pandemic driving down demand.
The Energy Information Administration (EIA) reported ethanol production for the week ended Oct. 16 averaged 913,000 barrels per day (BPD). That was down 24,000 BPD from the previous week. Ethanol stocks in the U.S. stood at 19.72 million barrels.
Despite the markets thinking corn production in China would be lower due to damage caused by typhoons, reports stated the damage was minimal and that production remains forecast to be greater this year than last year.
WHEAT futures were mixed on Wednesday, with gains for Minneapolis and losses for Chicago and Kansas City.
Dry conditions in Russia and Ukraine remain a problem for each country’s wheat production. As well, dryness across the U.S. South Plains has been hampering the emergence of winter wheat.
The USDA attaché in Australia reported that country’s 2020/21 wheat crop is to come in at 28 million tonnes. The attaché said the 80 per cent jump in production was due to drought ending rains and an excellent growing season. Australia wheat exports were projected to be 18.5 million tonnes.
