By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 10 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were weaker on Tuesday, with losses again hitting double digits.
Declines in the Chicago soy complex, European rapeseed and Malaysian palm oil contributed to the pull back in canola.
Small gains in global crude oil prices helped to temper further losses in vegetable oils.
Large canola crush margins continued to underpin the oilseed’s values.
The Canadian dollar was lower at mid-afternoon Tuesday, providing additional support for canola. The loonie fell to 74.53 U.S. cents, compared to Monday’s close of 74.76.
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There were 37,144 contracts traded on Tuesday, which compares with Monday when 25,234 contracts changed hands. Spreading accounted for 20,030 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Mar 841.60 dn 17.00 May 838.20 dn 17.20 Jul 838.80 dn 17.00 Nov 810.20 dn 13.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) closed lower after a day of choppy trading on Tuesday, ahead of several reports from the United States Department of Agriculture (USDA).
The trade projected U.S soybean ending stocks to rise from 220 million bushels in December to 236 million. Quarterly stocks as of Dec. 1 are expected to dip from 3.15 billion bushels to 3.13 billion.
Due to extended drought in Argentina, Dr. Michael Cordonnier of Soybean and Corn Advisor cut his call on that country’s 2022/23 soybean production by 4.7 per cent at 41.0 million tonnes. With much better conditions in Brazil, Cordonnier kept his projections at 151 million tonnes of soybeans.
Meanwhile, temperatures have been forecast to remain warm in Argentina with some chances of rain this week, but amounts are not expected to be significant.
AgRural placed the Brazil soybean harvest at 2.3 per cent complete as of Jan. 5, not the 0.04 per cent reported yesterday.
WHEAT futures were weaker on Tuesday, due to an increase in supplies around the world
Market expectations for wheat ending stocks are an average of 580 million bushels, which would be a 1.6 per cent increase from December. Quarterly wheat stocks are projected to be 1.34 billion bushels for the smallest amount since 2007.
The trade placed the average call on U.S. winter wheat plantings at 34.49 million acres. That would up 3.6 per cent from 2022 final acres.
A report stated that India is poised to reap a record wheat harvest in 2023, largely due to an increase in planted acres. Production has been projected to hit 112.0 million tonnes, up from last year’s 106.8 million. In 2021, India harvested 109.6 million tonnes of wheat.
CORN futures were lower on Tuesday, in sympathy with soybeans and wheat.
The average trade guess placed U.S. corn ending stocks at 1.31 billion bushels, up 4.5 per cent from December. Quarterly stocks are believed to be 11.15 billion bushels, for the smallest amount since 2013.
Cordonnier sliced off one million tonnes for Argentina’s corn production, now at 45 million, while keeping Brazil at 125 million tonnes of corn.
