By Glen Hallick, MarketsFarm
WINNIPEG, May 23 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mostly lower on Tuesday after trading resumed after being closed for Victoria Day. The only gain was in the old crop July contract.
There was two to three inches of rain in Alberta over the long weekend, with some parts of the drought-stricken province getting upwards of five inches. Not only did the precipitation provide relief to the ongoing wildfire situation it also gave crops some much needed moisture.
Pressure on canola came from sharp declines in the Chicago soy complex, as well as modest losses in Malaysian palm oil. European rapeseed bumped up a little to provide a small measure of support to the Canadian oilseed. Although global crude oil prices faded from stronger gains, the increases still provided spillover for the vegetable oils.
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The Canadian dollar was virtually unchanged at mid-afternoon Tuesday, with the loonie at 74.05 U.S. cents, compared to Friday’s close of 74.06.
There were 43,584 contracts traded on Tuesday, which compares with Friday when 26,181 contracts changed hands. Spreading accounted for 31,680 contracts traded.
Prices are in Canadian dollars per metric tonne. ICE Futures had yet to post its final settlement.
Price Change Canola Jul 701.00 up 3.60 Nov 665.80 dn 3.60 Jan 668.70 dn 4.80 Mar 673.50 dn 4.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Tuesday, due to good seeding progress over the last week.
The United States Department of Agriculture (USDA) issued its crop progress report and for the week ended May 21 soybeans planted reached the two-thirds complete mark. That’s up 17 points on the week and 14 points ahead of the five-year average. Soybeans emerged was at 36 per cent, gaining 16 points over the week and were 12 points above the average.
The USDA reported export inspections of soybeans totaling 155,051 tonnes for the week ended May 18. That’s down 17 per cent from the previous week and a 73.4 per cent drop from the same time last year. The year-to-date inspections were just short of 48.20 million tonnes compared to 49.15 million a year ago.
On Monday, the USDA reported a sale of 225,000 tonnes of old crop soymeal to the Philippines.
China said it imported 9.2 million tonnes of soybeans from Brazil during the first four months of 2023, compared to 12.7 million over the same period last year. The delayed harvest in Brazil was the reason for the reduced imports.
CORN futures were higher on Tuesday, benefitting from spillover from wheat.
The seven-day forecast for the U.S. Corn Belt has the region going largely without rain, although some parts of Kansas, Nebraska and Ohio could see up to a quarter-inch. As for temperatures, most of the southern half of the U.S. is expected to be normal to below normal, while the northern half is to be normal to above normal.
Corn planted in the U.S. reached 81 per cent in the ground, advancing 16 points over the week and six ahead of the five-year average. Corn emerged surpassed the halfway point at 52 per cent, up 22 points on the week and seven ahead of the average. North Dakota vaulted from five per cent finished to 32 per cent done.
The USDA reported corn export inspections of 1.32 million tonnes, up 12.7 per cent from the previous week, but 24.5 per cent less than a year ago. The year-to-date tallied 27.37 million tonnes, far less than the 40.90 million a year ago.
WHEAT futures were stronger on Tuesday, as the U.S. crops continued to struggle.
The USDA pegged winter wheat at 31 per cent good to excellent, up two points from the previous week. However, Kansas and Oklahoma rated 10 per cent good to excellent, with Texas next at 23 per cent. Winter wheat headed out nationwide was at 61 per cent, gaining 12 points and was on par with the five-year average.
Spring wheat planted in the U.S. hit 64 per cent done, up 24 points on the week, but was nine points behind the five-year average. Spring wheat emerged was at 32 per cent, up 19 points and eight under the average. North Dakota advanced from 20 to 48 per cent complete.
A report said up to a third of U.S. wheat acres could be abandoned due to drought conditions.
U.S. wheat export inspections came to 407,682 tonnes, rising 54.8 per cent on the week and up 48 per cent compared to the same week last year. The year-to-date tally hit 19.14 million tonnes versus 19.65 million a year ago.
A report said the U.S. imported 30,000 tonnes of wheat from the European Union, most likely from Poland.
