By Glen Hallick, MarketsFarm
WINNIPEG, May 25 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Tuesday, including the July contract, which pulled an about-face after hitting its limit up earlier in the session.
Rain over the Victoria long weekend brought some temporary relief to crops across the Prairies, but the dry conditions are expected to continue. The threat of overnight frosts over the coming few days has farmers across the region nervous.
Declines in Chicago soybeans and soymeal weighed on canola values, but those declines were tempered by strong gains in soyoil. European rapeseed applied pressure to canola, but was countered by increases in Malaysian palm oil.
Read Also
North American Grain/Oilseed Review: Canola, CBOT grains down
Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange started the week lower. Despite easing away from heavier…
Interest in the July contract continued to wane early this crop year as tight supplies have driven the trade’s focus to the November contract.
At mid-afternoon the Canadian dollar was relatively steady, with the loonie at 82.93 U.S. cents compared to Friday’s close of 82.91.
There were 20,613 contracts traded on Tuesday, which compares with Friday when 19,711 contracts changed hands. Spreading accounted for 4,516 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 878.00 dn 5.20
Nov 697.30 dn 9.50
Jan 693.50 dn 9.40
Mar 683.20 dn 8.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Tuesday, along with sharp declines in soymeal.
In the weekly crop progress report, the United States Department of Agriculture (USDA) reported soybean planting was at 75 per cent complete as of May 23, for a gain of 14 points on the week. The five-year average is 54 per cent. Soybeans emerged more than doubled to 41 per cent and were 16 points ahead of the average.
The USDA reported export inspections of soybeans were 193,912 tonnes for the week ended May 20, for a drop of 37.5 per cent from the previous week. Year-to-date soybean exports total 56.22 million tonnes and are just over 60 per cent of inspections this time last year.
The National Oceanic and Atmospheric Administration (NOAA) forecast rain over the coming days across much of the major growing areas in the U.S.
Brazil said its daily soybean exports were nearly 843,000 tonnes for the week ended May 21. That’s down from the previous week’s 880,000 tonnes.
CORN futures were weaker on Tuesday, with the nearby July contract hitting the down limit of 40 cents per bushel during the session, before stepping back.
The USDA reported corn planted reach 90 per cent finished, gaining 10 points from the previous week and ahead of the five-year average by the same amount. Corn emerged was at 64 per cent, rising 23 points from the previous week and was 10 points up on the average.
The department said corn export inspections totaled 1.73 million tonnes and were down nearly 12.9 per cent from the previous week. The year-to-date shipments abroad amount to 48.87 million tonnes, and are almost 78 per cent ahead of those a year ago.
A federal judge in Mexico ruled on May 24 that the country’s government can proceed with its proposed ban on genetically modified corn and glyphosate beginning in 2024.
Soybean and Corn Advisor’s Dr. Michael Cordonnier lopped two million tonnes off of his call on Brazil corn production due to continuing dryness in the country. That now brings Cordonnier’s estimate for 2020/21 down to 95 million tonnes.
Year-to-date corn exports from Ukraine were reported to be 20.4 million tonnes, which was closing in on the country’s goal of 24 million tonnes.
Global top 10 corn producer South Africa stated its 2020/21 corn crop to be 16.41 million tonnes, up seven per cent from the previous year.
WHEAT futures were lower on Tuesday, with double-digit declines for Kansas City, while Minneapolis and Chicago incurred more moderate losses.
U.S. winter wheat conditions dipped one point from the previous week at 47 per cent good to excellent. The USDA indicated 67 per cent of the crop has emerged, which is up 14 points from the previous week and two points short of the average.
Meanwhile, spring wheat planted hit 94 per cent done, up nine points on the week and also nine ahead of the average pace. The USDA said 66 per cent has emerged, which is 19 points better than a week ago and 10 points ahead of average. The USDA’s first ratings for 2021 put spring wheat at 45 per cent good to excellent.
The department reported wheat exports of 573,912 tonnes, for a drop of 13.1 per cent from the previous week. Year-to-date movements come to 24.95 million tonnes and are 2.3 per cent ahead of those a year ago.
Despite a 15.25 per cent drop from last year’s record wheat harvest, IKON has projected Australia to reap 29.5 million tonnes this year, which still would make for one of the country’s largest ever wheat crops.
Ukraine reported about 15.6 million tonnes of wheat has been exported, keeping the country on pace to reach 17.5 million tonnes in 2020/21.
Japan has been seeking to purchase more than 124,600 tonnes of wheat from Canada and the U.S. for July shipment. In other international purchases Indonesia has tendered for 180,000 tonnes of feed wheat, while Algeria and Bangladesh respectively issued tenders for 50,000 tonnes of wheat.
