By Glen Hallick, MarketsFarm
WINNIPEG, March 13 (MarketsFarm) – ICE Futures canola contracts were down for the most of trading on Wednesday, but rallied off of earlier lows to end the day at steady.
Increases in soybean prices and bargain hunting in canola provided support.
Continuing issues between Canada and China has led to a large carryover for 2018 and poor export demand, which weighed on values.
The Canadian dollar pushed above the 75 U.S. cents by midafternoon Wednesday.
SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday, on comments from United States Trade Representative Robert Lighthizer stating an end to the U.S./China trade war would mean trillions of dollars for U.S. agriculture.
A deal is expected to be signed by the end of the month.
However, that was tempered by bipartisan criticism leveled at President Donald Trump. In the president’s 2020 budget he has proposed a 15 per cent spending cut to the U.S. Department of Agriculture. Trump also commented that subsidies to U.S. farmers have been too generous. Republicans and Democrats rebuked Trump, stating those subsidies are actually crop insurance.
CORN futures were up on Wednesday. Trump said he plans to allow E15 ethanol to be sold, something the U.S. corn industry has been lobbying for. This was tempered by reports of U.S. corn being non-competitive on the global market.
WHEAT futures were down in trading on Wednesday, with losses from six to 10 cents per bushel in the Chicago, Kansas and Minneapolis wheat contracts.
This was a correction from Tuesday’s gains and there being large global supplies of wheat.