By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures fell hard on Tuesday, getting pressure from declines in comparable oils.
A trader emphasized that canola has turned weaker due largely to sharp losses in Chicago soyoil. He said there’s been reduced demand for soyoil from the biofuel sector. Added to that he said forecasts of rain for the Prairies continued to weigh on values.
The Chicago soy complex, European rapeseed and Malaysian palm oil were down on the day. Modest declines in crude oil prices added more pressure on the oilseeds.
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The July canola contract fell below is 20-day, 50-day and 100-day moving averages. Canola crush margins dropped to their lowest levels in more than a year.
The Canadian dollar was weaker at mid-afternoon Tuesday due to sharp upticks in the United States dollar and a lackluster economic report from Statistics Canada. The loonie fell to 72.65 U.S. cents compared to Monday’s close of 73.22.
There were 43,539 contracts traded on Tuesday, compared to Monday when 41,290 contracts changed hands. Spreading accounted for 19,138 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 618.00 dn 15.00 Nov 635.00 dn 14.10 Jan 643.80 dn 13.30 Mar 649.20 dn 12.30
SOYBEAN futures at the Chicago Board of Trade weakened on Tuesday due to good advances in seeding this year’s crop.
The United States Department of Agriculture published its crop progress report on Monday afternoon, showing soybean planting at 18 per cent complete, up 10 points on the week and two ahead of the same time last year. As well, this year’s seeding was eight points ahead of the five-year average.
The U.S. Energy Information Administration reported 888 million pounds of soyoil were used for biodiesel production in February. That’s down from the 960 million pounds in January and the lowest monthly tally in 15 months.
The U.S. weather forecast called for severe thunderstorms today for parts of Nebraska, Kansas, Iowa and Minnesota.
Crop consultant Dr. Michael Cordonnier of Soybean and Corn Advisor kept his projections for Brazil and Argentina soybean production at 147 million and 51 million tonnes respectively.
The strike in Argentina by members of United Maritime Workers Union entered its second day, and it’s likely to slow the country’s soymeal and soyoil exports.
CORN futures were lower on Tuesday, due to planting progress.
The USDA placed corn planted at 27 per cent finished, advancing 15 points on the week and four ahead of a year ago. Progress stood five points ahead of the average pace. Corn emerged rose to seven per cent, up four points and two better than the same time last year. The five-year average rated four per cent.
Farm Futures reported fertilizer prices are lower, with nitrogen down 17 to 31 per cent on the year, with potash dropping 15 per cent.
The second corn crop in Brazil was said to be near its peak pollination. Meanwhile, field conditions vary from dry in the state of Mato Grasso to flooding in Brazil’s south.
Cordonnier held his estimate on Brazil corn output at 112 million tonnes but cut one million of off his call on Argentina corn at 49 million tonnes.
WHEAT futures were lower on Tuesday, in sympathy with soybeans and corn.
U.S. spring wheat planted jumped 19 points on the week at 34 per cent seeded. That’s 24 points better than a year ago and 15 up on the average pace. Spring wheat emerged bumped up three points at five per cent, three ahead of last year and on par with the average pace.
The USDA attaché in Canberra slightly trimmed their forecast on Australian wheat production in 2024/25 to 25.8 million tonnes from 26.0 million the previous year.
