Statistics Canada on Tuesday reported that farmers intend to seed a record 20.37 million acres of canola this year, similar to what traders had expected.
On average, the trade in a pre-report Reuters poll expected 20.6 million acres of canola.
The increases in canola all come from Saskatchewan (up 970,000 acres) and Manitoba (up 525,000 acres). Alberta stayed the same in the StatsCan survey.
Generally, there were no big surprises, however Statistics Canada’s all wheat seeded area number is higher than expected, mostly due to a durum seeding number is 600,000 acres higher than the trade’s pre-report guess.
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Because the record canola acreage was expected, the StatsCan report had little negative effect on ICE Futures Canada canola price.
The May canola contract closed at $626.90 per tonne, up $4.50.
November was $578.20, up $3.60.
Canola was supported by soybeans, which were supported by continued deterioration in estimates for the Argentine soybean crop and expectations of good demand for U.S. soybeans.
Oilseed analysts Oil World today lowered its outlook for Argentina’s crop to 42.5 million tonnes. That follows the country’s official forecast that dropped to 42.9 million on Friday. USDA’s April forecast was 45 million and the trade expects it to lower the forecast in the May report.
Reuters reported on Tuesday that frost now threatens late seeded soybeans in Argentina as that southern hemisphere country moves into autumn.
Minneapolis spring wheat futures edged higher despite the larger than expected StatsCan wheat number. New crop December closed at $7.9125, up four cents.
Statistics Canada’s survey of farmers showed producers intend to seed 24.32 million acres of wheat, all types. That is about 900,000 acres more than the trade’s average guess of 23.4 million.
StatsCan’s durum number is 5.1 million acres, up from the trades’ average guess of 4.5 million.
The survey said farmers intend to seed 17.18 million acres of spring wheat, up 27 percent from last year when excess moisture prevented sowing in many areas.
StatsCan pegged barley area at 7.97 million acres, up from the trade’s pre-report guess of 7.7 million. Nearby Western Barley futures jumped up $5 a tonne.
Oats area is forecast at 3.39 million acres, spot on with the trade’s guess of 3.4 million.
Pea area is seen at 3.31 million. No surprise there, the trade also expected 3.3 million.
Growers told StatsCan they intend to seed 1.04 million acres of flax, up a little from the trade’s guess at 925,000.
StatsCan pegged lentil area at 2.46 million acres. There was no estimate from the trade on lentils.
Summerfallow acres are expected to plunge to 3.97 million, down 68 percent from last year as drier fields allow more seeding this year.
The March crop planting intentions survey was conducted between March 23 and 30 with about 13,400 farmers.
Stats Canada does not do national special crop acreage numbers but does include them in the Saskatchewan provincial results.
Growers in that province said they would seed 230,000 acres of mustard seed, down from last year’s 265,000.
Canaryseed area was pegged at 275,000 acres, up from 235,000 last year.
Chickpeas jump to 265,000, up from 105,000 last year.
Manitoba farmers said they intend to seed a record 800,000 acres of soybeans, a huge increase over the previous record set last year of 575,000.
Manitoba dry bean area is expected to increase to 145,000 acres, up from 60,000 last year.
Manitoba summerfallow area is expected to plunge to 200,000 acres, down from the flood affected 2.7 million last year.
Winnipeg (per tonne)
Canola May 12 $626.90, up $4.50, +0.72%
Canola Jul 12 $620.10, up $4.20, +0.68%
Canola Nov 12 $578.20, up $3.60, +0.63%
Canola Jan 13 $582.00, up $2.70, +0.47%
The previous trading day’s best basis in the par region was +$2.40 over the May contract, said ICE Futures Canada.
The 14-day relative strength index was 67.
Western Barley May 12 $240.00, up $5.00, +2.13%
Western Barley Jul 12 $235.00, unchanged
Milling Wht Oct 12 $255.00, down $2.00 -0.78%
Milling Wht Dec 12 $260.00, down $2.00 -0.76%
Milling Wht Mar 13 $270.00, down $2.00 -0.74%
Durum Wht Oct 12 $277.50, unchanged
Durum Wht Dec 12 $282.00, unchanged
Durum Wht Mar 13 $288.60, unchanged
Barley Oct 12 $186.50, unchanged
Barley Dec 12 $190.00, unchanged
Barley Mar 13 $191.50, unchanged
Chicago (per bushel)
Soybeans May 12 $14.635, up 26.25 cents +1.83%
Soybeans Jul 12 $14.6675, up 25.75, +1.79%
Soybeans Nov 12 $13.525, up 11.0, +0.82%
Corn May 12 $6.2325, up 0.75, +0.12%
Corn Jul 12 $6.13, up 0.5, +0.08%
Corn Dec 12 $5.4425, down 1.25, -0.23%
Oats May 12 $3.4025, up 14.25 +4.37%
Oats Jul 12 $3.425, up 15.75 +4.82%
Oats Dec 12 $3.48, up 12.0 +3.57%
Minneapolis (per bushel)
Spring Wht May 12 $7.9275, up 1.0, +0.13%
Spring Wht Jul 12 $7.9425, up 0.5, +0.06%
Spring Wht Sep 12 $7.9025, up 2.0, +0.25%
Spring Wht Dec 12 $7.9125, up 4.0, +0.51%
The nearby New York light sweet crude contract rose 44 cents to $103.55 US.
The Canadian dollar at noon was $1.0118 US, up from$1.0064 the previous trading day. The U.S. dollar at noon was 98.83 Cdn.
Strong corporate earnings generally supported stock markets, but worries about commodity demand put pressure on the TSX.
The Toronto Stock Exchange Composite Index fell 8.85 points, or 0.07 percent, at 11,980.10.
The Dow Jones industrial average gained 74.39 points, or 0.58 percent, to 13,001.56 at the close.
The Standard & Poor’s 500 Index rose 5.03 points, or 0.37 percent, to 1,371.97.
The Nasdaq Composite Index slipped 8.85 points, or 0.30 percent, to 2,961.60. The technology sector was down because of worries that Apple shares might be overvalued, but when the company issued its quarterly report after the close, its results were better than expected.
Quarterly results are now in from 153 S&P 500 companies and more than 75 percent topped analyst estimates.
