Glacier FarmMedia – Canola futures on the Intercontinental Exchange took a downturn on Tuesday, pressured by weakness in comparable oils.
Chicago soyoil lost more than one United States cent per pound while European rapeseed and Malaysian palm oil were also down. Crude oil fell more than US$1 per barrel despite tensions between Russia and Ukraine.
Analysts said that Chicago soyoil was overbought during its rally late last week. With the trade now looking forward to Statistics Canada’s model and survey-based estimates on Thursday, as well as bumper crops for Canadian canola and U.S. soybeans, prices could fall further.
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As Saskatchewan and Alberta were forecast to see temperatures hover around 30 degrees Celsius today, central parts of both provinces could see some rain and thunderstorms.
At mid-afternoon, the Canadian dollar was steady compared to Monday’s close.
There were 40,659 canola contracts traded on Tuesday, which compares with Monday when 38,295 contracts changed hands. Spreading accounted for 20,890 of the contracts traded.
SOYBEANS on the Chicago Board of Trade eked out small gains on Tuesday despite heavy pressure from comparable oils, especially Chicago soyoil and crude oil.
The United States Department of Agriculture reported on Monday that soybean conditions as of Aug. 24 improved by one point at 69 per cent good to excellent, with Louisiana having the best rating at 92 per cent. Pod setting was present in 89 per cent of the crop, while four per cent were dropping leaves.
Crop consultant Dr. Michael Cordonnier left his yield for the U.S. soybean crop unchanged at 53 bushels per acre. He also raised his production estimate for Brazilian soybeans by two per cent at 173 million tonnes and said soybean area in Argentina will decline by 500,000 hectares with production at 49 million tonnes.
A Brazilian federal judge granted an injunction on Monday temporarily suspending a decision from antitrust watchdog CADE that ordered grain traders to halt their so-called “soy moratorium” program. The two-decade-old agreement was created to protect the Amazon rainforest by barring soybean traders from buying from farmers who cleared land there after July 2008.
Senior Chinese trade negotiator Li Chenggang is expected to travel to Washington this week to meet with U.S. officials, a U.S. government spokesperson told Reuters.
December CORN finished the session in negative territory for the second time in three days.
U.S. corn crop conditions were unchanged at 71 per cent good to excellent, with the highest rating in Iowa at 84 per cent. In total, 83 per cent was in the dough stage, 44 per cent was dented and seven per cent was mature, all on track with the averages at this time of year.
Cordonnier left his yield for the U.S. corn crop unchanged at 184 bu./ac. He also expects the safrinha corn crop in Brazil to be up one to two per cent in area and said corn production in Argentina could increase by up to 15 per cent.
Chicago soft WHEAT prices were slightly higher on Tuesday, while other U.S. varieties were in the red.
The U.S. winter wheat harvest was 98 per cent finished last week as Montana, Idaho, Oregon and Washington were the only states left to finish harvesting. The spring wheat harvest progressed 17 points to 53 per cent done, while crop conditions declined one point at 49 per cent.
A large part of the U.S. Southern Plains is forecast to see between 25 to 75 millimetres of rain next week.
IKAR raised its production estimate for Russia’s wheat crop by 500,000 tonnes at 86 million, with exports also raised by the same amount at 43 million.
The European Union estimated its soft wheat exports at 2.18 million tonnes from July 1 to Aug. 24, compared to 4.15 million in the same period last year.
