By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 8 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Tuesday, as a weaker Canadian dollar and gains in Chicago soyoil provided support.
A trader commented that overnight frosts across the Prairies didn’t cause severe damage to the region’s canola, as much has been swathed. He said there was some pockets severe damage, such as those in the central and northern growing areas of Saskatchewan where temperatures reportedly fell to minus seven Celsius.
At mid-afternoon, the Canadian dollar was at 75.62 U.S. cents, compared to Friday’s close of 76.40.
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In today’s trading, soyoil at the Chicago Board of Trade jumped a half cent per pound. On the downside, European rapeseed and Malaysian palm oil were lower.
There were 35,699 contracts traded on Tuesday, which compares with Friday when 23,774 contracts changed hands. Spreading accounted for 20,040 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 510.90 up 7.20
Jan 517.80 up 7.30
Mar 522.60 up 6.90
May 526.30 up 5.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Tuesday, benefitting from increased demand.
The United States Department of Agriculture (USDA) reported two private sales of soybeans to China, one for 400,000 tonnes and the other for 264,000 tonnes. Delivery is to be during the 2020/21 marketing year.
Ahead of this afternoon’s weekly crop progress report from the USDA, market expectations are for the good to excellent ratings for soybeans and corn to drop by one to two points.
The department is scheduled to issue its next monthly supply and demand report on Sept. 11. The markets are expected to be positioning themselves for the rest of the week. Predictions for the 2020/21 crop year include soybean yields of 52.1 bushels per acre and ending stocks of about 465.0 million bushels.
Consultancy Safras increased its forecast of the 2020/21 Brazil soybean crop by almost 0.4 per cent to nearly 132.2 million tonnes.
Strategie Grain forecast the European Union and the United Kingdom to produce 17.1 million tonnes of rapeseed in 2020. That’s down 1.3 per cent from last year. Exports are expected to rise 1.6 per cent to 6.2 million tonnes.
Australia estimated its 2020 canola production to be 3.4 million tonnes.
CORN futures were higher on Tuesday, due to spillover from soybeans.
The USDA reported a private sale of 101,600 tonnes of corn to unknown destinations, with delivery during the 2020/21 marketing year.
Trade forecasts peg corn yields in Friday’s supply and demand report to be 178.3 bu/ac. and a carryout of 2.45 billion bushels. Losses from last month’s derecho wind storm are expected to have wiped-out 200 million to 400 million bushels of corn.
Safras projected the Brazil corn crop at 115.0 million tonnes.
China said it imported 9.6 million tonnes of soybeans in August. The year-to-date total is nearly 64.75 million tonnes.
Consultancy ProAgro raised its estimate of Ukraine corn exports for 2020/21 by 500,000 tonnes to 29.8 million.
WHEAT futures were lower on Tuesday, as the U.S. Dollar Index moved closer to 93.50 points, gaining strength on other major global currencies.
The markets expect the spring wheat harvest to be 80 to 83 per cent complete and winter wheat planting to be about four per cent complete.
Australia bumped up its estimate of its 2020 wheat crop by 8.4 per cent to 28.9 million tonnes. The country’s barley crop is expected to come in at 11.3 million tonnes.
Turkey issued a tender for 500,000 tonnes of wheat, and Pakistan issued a tender for 170,000 tonnes.
