By Glen Hallick, MarketsFarm
WINNIPEG, April 13 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher on Tuesday, due to gains in comparable edible oils, particularly Chicago soyoil.
Tight supplies continued to underpin old crop values, which experienced the larger gains. Meanwhile, the dryness supported new crop prices.
Speculation there might be more canola going into the ground this spring than the 20.1 million acres projected by Agriculture and Agri-Food Canada put pressure on values. Statistics Canada is scheduled to release its first-survey based report on planting intentions at the end of April.
While the Prairies received a varied amount of snow over the last two days, the added moisture is likely not enough to alleviate the dry conditions across much of the region.
At mid-afternoon the Canadian dollar was slightly higher, with the loonie at 79.75 U.S. cents compared to Monday’s close of 79.66.
There were 21,366 contracts traded on Tuesday, which compares with Monday when 19,711 contracts changed hands. Spreading accounted for 9,708 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Canola May 817.20 up 10.10
Jul 742.20 up 9.00
Nov 632.50 up 5.30
Jan 634.10 dn 6.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Tuesday, as selling was seen as being overdone.
China reported its soybean imports were 7.77 million tonnes in March, skyrocketing 82 per cent after a slow January and February. At 8.2 million tonnes, the country’s first quarter imports were up 19 per cent compared to a year ago. However, there are concerns regarding a resurgence of African swine fever taking further hold in China’s hog industry.
The European Union reported its 2020/21 soybean imports stood at 11.5 million tonnes as of April 11. That’s little more than two per cent above imports this time last year.
While the United States Department of Agriculture (USDA) projected the Argentina soybean crop at 47.5 million tonnes, private estimates peg it lower at 42 million to 43 million.
There have been reports of damage to about five per cent of France’s rapeseed crop. Below normal temperatures extend across Europe into Ukraine.
CORN futures were stronger on Tuesday, as a weather premium was beginning to take hold due the pace of planting in the United States not being fast enough for the markets.
The USDA reported yesterday that corn planting was at four per cent complete, up two points from the previous week and one above the five-year average.
China said its first quarter corn imports amounted to 6.73 million tonnes, vaulting 500 per cent from this time last year.
More rain has been forecast for the corn growing areas of northern and central Brazil, but the southern areas are to remain dry.
WHEAT futures were higher as well on Tuesday, catching spillover from corn and soybeans.
The USDA reported winter wheat conditions held at 53 per cent good to excellent, but were nine points behind this time last year. Five per cent of the crop has headed out, up one point from the previous week while two behind the five-year average.
Spring planting in the U.S. reached 11 per cent complete for a gain of eight points over last week. The current pace was also five ahead of the average.
One to three inches of snow have been forecast to fall on most of Montana and North Dakota, as well as parts of Minnesota. However the amounts are unlikely to rectify the dry conditions in the states. The amount of spring wheat seeded in the above states was six, eight and seven per cent complete, respectively.
At 2.93 million tonnes, China reported its wheat imports in the first quarter were more than double than what they were a year ago.
France reported it expects a 15 per cent increase in the amount of acres for wheat planting. The projected 12.11 million acres would be in line with the country’s five-year average.