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North American Grain/Oilseed Review

By Marlo Glass, MarketsFarm

WINNIPEG, Sept. 9 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker Monday, as a strong Canadian dollar and weaker soy oil values weighed on prices.

The Canadian dollar has hovered around 76 U.S. cents for the past few days, which has made canola less attractive to buyers.

A Winnipeg-based trader explained that speculative long traders bailing out of contracts could cause canola values to hit lower than C$440.

Statistics Canada will release its field crop estimates on Thursday, which will provide some direction to markets.

There were 12,052 contracts traded on Monday, which compares with Friday when 15,417 contracts changed hands. Spreading accounted for 6,024 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were steady to slightly lower on Monday, as markets wait for direction. The United States Department of Agriculture (USDA) World Agriculture Supply Demand Estimates (WASDE) will be released on Thursday.

Some analysts are calling for a decline in yield of approximately 1.3 bushels per acre, which would be supportive for values. However, large seeded acreage in Brazil could counter that support.

According to a recent report, soybean exports increased by nearly 10 per cent in August. Deliveries consisted of mostly old-crop contract soybeans.

Approximately 906,000 tonnes of soybeans were exported last week. That’s down nearly 30 per cent from the previous week, and 2.3 per cent lower than this week last year.

CORN futures were steady on Monday, recovering after hitting fresh contract lows last week.

The USDA reported an export sale of 651,670 tonnes of corn to Mexico this morning. Most of that order is for the 2019/2020 crop, with 60,000 tonnes ordered for the 2020/2021 crop.

Corn demand remains in flux, as the U.S. biofuel industry has seen over 15 plants close or drastically cut production.

WHEAT futures were steady to higher on Monday, despite large worldwide stocks keeping a lid on values. A recent report pegged carryout volumes at the end of May to be above 1 billion bushels.

Though global wheat stocks remain very large, Australia’s wheat crop may be threatened by a drought.

Wheat futures found some strength from traders covering short positions ahead of the WASDE on Thursday.

The USDA reported wheat shipments of approximately 402,486 tonnes last week. That’s a drop of 27.94 per cent from the previous week, and about nine per cent lower than this week last year.

END

Commodity Future Prices

Canola
Price Change

Prices are in Canadian dollars per metric ton

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