By Marlo Glass, MarketsFarm
WINNIPEG, Nov. 25 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts closed slightly higher on Wednesday, regaining some of the losses incurred in yesterday’s trade.
Positioning ahead of the United States Thanksgiving holiday was a feature in trade, as market activity is expected to be quiet for the rest of the week. U.S. markets are closed tomorrow.
Gains in Chicago soyoil were supportive of canola, as market participants rolled out of the December contract and into January. Nearby contracts were up by about a tenth of a cent.
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Strength in the Canadian dollar kept a lid on further gains for canola. The loonie was around 76.9 U.S cents, hitting recent highs.
On Wednesday, 18,090 contracts were traded, which compares with Tuesday when 32,634 contracts changed hands. Spreading accounted for 12,662 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, amid light trading activity ahead of the Thanksgiving holiday. Market activity is expected to be subdued for the rest of the week.
China imported 124.9 million bushels of U.S. soybeans in October, which is nearly three times higher when compared to the same time a year ago. Rising hog and poultry herds in China contributed to the country’s rising soybean demand.
However, reports indicate some Chinese soybean importers are looking to cancel soybean shipments booked for December and January due to lower crush margins. The cancelled shipments indicate Chinese demand may be slowing.
Stalled contract talks between Argentina’s oilseed workers and export companies could threaten another worker strike in the country, which would impact soybean export activity.
CORN futures were also lower today, after hitting 16-month highs earlier in the week.
Ethanol production data released later today by the Energy Information Administration (EIA) will likely show continued declines, as a fresh round of COVID-19 restrictions are put in place across the country in order to combat the spread of the virus.
Ukraine has estimated their corn crop could total 30 million tonnes this year, compared to 35.9 million tonnes last year. The USDA’s current estimate is 28.5 million tonnes.
WHEAT futures were also lower today, pressured by rain in key growing regions.
A private firm has raised their estimate of Russia’s wheat exports for the coming year by one million tonnes, to 40.8 million tonnes. The USDA estimate is at 39.5 million tonnes.
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