By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 29 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Tuesday, due to weakness in Chicago soyoil and European rapeseed.
Harvest progress across the Prairies also weighed on values. Rainfall across the region this week is expected to result in minor delays. Manitoba is scheduled to release its weekly crop report later this afternoon.
A trader cautioned that if November canola dropped to C$510.40 per tonne, it’s low from last week, such would’ve signaled a negative technical set up. He noted that canola appears vulnerable due to more selling.
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At mid-afternoon, the Canadian dollar was slightly lower at 74.68 U.S. cents, compared to Monday’s close of 74.75.
There were 35,148 contracts traded on Tuesday, which compares with Monday when 22,770 contracts changed hands. Spreading accounted for 18,542 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 512.00 dn 2.30
Jan 519.30 dn 2.20
Mar 526.10 dn 2.00
May 530.60 dn 1.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Tuesday, due to harvest pressure.
The United States Department of Agriculture (USDA) issued its weekly crop progress report yesterday. As of Sept. 27 the soybean harvest reached 20 per cent complete, which was a gain of 14 points from the previous week and was five points up on the five-year average. Soybean conditions gained one point to 64 per cent good to excellent.
The USDA reported a private sale of 100,000 tonnes of soybeans to Mexico. Delivery is to be during the current marketing year.
Ahead of Wednesday’s grain stocks report from the USDA, the markets have projected soybean stocks to be at 578.0 million bushels as of Sept. 1.
Dr. Michael Cordonnier of Soybean and Corn Advisor Inc. maintained his projection for U.S. soybean yields at 51 bushels per acre (bu/ac) and production at 4.23 billion bushels.
Although tonight’s debate between U.S. President Donald Trump and former Vice-President Joe Biden likely won’t affect the commodity markets directly, it could set the tone for the U.S. dollar during the rest of the election campaign.
CORN futures were slightly lower on Tuesday, due to harvest pressure as well.
The USDA reported the corn harvest was at 15 per cent complete, for a gain of seven points on the week and behind the five-year average by only a single point. Corn conditions remained at 61 per cent good to excellent.
The markets forecast corn stocks to be at 2.266 billion bushels in tomorrow’s USDA report.
Cordonnier kept his estimate of U.S. corn yields at 176.0 bu/ac and production at 14.68 billion bushels.
WHEAT futures were steady to lower on Tuesday, catching spillover from soybeans and corn.
The planting of winter wheat reached 35 per cent done, for a gain of 15 points from the previous week, according to the USDA.
Trade expectations pegged U.S. wheat production in 2020 at 1.836 billion bushels, for a decline of two million bushels from the USDA’s August report.
Russia recorded its largest hard wheat crop in the post-Soviet Union era at 25.9 million tonnes.
In weather, there is the threat of frost this weekend for the Buenos Aires region of Argentina, which could damage its wheat crops. Meanwhile in Australia, a moderate La Nina reportedly could improve wheat production in that country.
