By Marlo Glass, MarketsFarm
WINNIPEG, Dec. 29 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Wednesday, walking back some of the gains made earlier in the week.
Canola prices are expected to gain strength in the weeks to come in order to temper demand. Some market participants are concerned of tight carryout stocks in the spring.
Chicago soyoil was slightly stronger on the day, which prevented further losses for canola. Nearby contracts were up by about a fifth of a cent on the day.
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Continual strength in the Canadian dollar also kept pressure on prices. The loonie was around 78.4 U.S cents.
Today, 18,775 contracts were traded, which compares with Tuesday when 43,496 contracts changed hands. Spreading accounted for 10,600 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) closed stronger on Wednesday, maintaining multi-year highs following the Christmas holidays.
Market participants are watching South American growing conditions and their impact on crop production. According to ANEC, a representative for Brazilian grain exporters, December corn exports from Brazil were four per cent lower than anticipated. Exports fell by 6.3 million from previous forecasts to total 167.7 million bushels.
The port strike in Argentina has reportedly ended after considerable negotiations between parties. Dock workers will see their salaries increase by 25 per cent by August 2021, with additional raises expected after that to align with the country’s rate of inflation. The strike delayed at least 162 grain cargoes at Argentine ports, costing nearly $1.5 billion in lost shipping revenues.
CORN futures were also stronger today.
Ethanol production data will be released today by the United States Energy Information Administration. Ethanol usage is expected to see a boost due to holiday travel.
Brazil’s corn exports are forecast to reach 4.42 million tonnes in December, up from the previous forecast of 4.26 million tonnes.
WHEAT futures were also higher today.
Rain is forecast for the southern plains, which has eased concerns about the condition of the hard red winter wheat crop.
The United States Department of Agriculture’s export sales report tomorrow is expected to show 200,000 to 600,000 tonnes of new crop wheat bookings.
