By Marlo Glass, MarketsFarm
WINNIPEG, Sept. 11 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Wednesday, bouncing back after six consecutive sessions of lower trade.
One trader said there’s little in the market they would deem as decisive, as markets have clung to the bottom end of chart support for the past two and a half months.
Cool, wet temperatures may threaten harvest activity to the point that some experts are concerned that crops may be damaged before coming off the fields.
Statistics Canada will release its field crop estimates on Thursday, which will provide some direction to markets.
There were 14,394 contracts traded on Wednesday, which compares with Tuesday when 17,354 contracts changed hands. Spreading accounted for 8,416 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, correcting downward from gains earlier this week.
There is some speculation that trade relations with China may improve after United States National Security advisor John Bolton was fired yesterday. Bolton was seen as hawkish against China and may have contributed to previous animosity between the two countries.
Ahead of trade talks next month, China has exempted over a dozen American-made products from previously-imposed tariffs. This move is seen as a gesture of goodwill, however, tariffs remain in place for U.S. farm products, including soybeans, corn, and pork.
China announced a new trade partnership with Argentina yesterday; the country will now accept Argentine soybean meal.
Late developing corn and soybean crops should benefit from warm temperatures forecast in some key growing regions this week.
However, rain forecast for the upper Midwest could further delay harvest season.
CORN futures were stronger on Wednesday. Ahead of the World Agricultural Supply Demand Estimates (WASDE), released by the United States Department of Agriculture tomorrow, some traders are expecting world carryout stocks for corn to be around 329 million tonnes.
WHEAT futures were lower on Wednesday, due to burgeoning world stocks. Experts anticipate world wheat stocks to rise slightly to approximately 284 million tonnes for new crop, and 274 million tonnes for old crop. In particular, high wheat production numbers from France and Ukraine are expected to boost numbers.
The U.S. spring wheat harvest is about 70 per cent complete, lagging behind the four-year average of 87 per cent.