By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 19 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures dropped further in heavy trading on Tuesday, after significant weakness yesterday.
As part of a general selloff in the markets, declines in Chicago soyoil and soybeans, as well as in Malaysian palm oil put pressure on canola. Meanwhile, upticks in Chicago soymeal and European rapeseed helped to temper further declines.
While a trader commented that the canola harvest on the Prairies has been rather slow this year, good harvest weather is in the forecast. The trader noted that harvest selling is likely to continue for two more weeks.
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Already strong crush margins were on the rise, further underpinning canola values.
The Canadian dollar added more ground by mid-afternoon Tuesday with the loonie at 74.40 U.S. cents, compared to Monday’s close of 74.12.
There were 50,521 contracts traded on Tuesday, which compares with Monday when 39,506 contracts changed hands. Spreading accounted for 32,644 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 734.30 dn 7.70 Jan 743.60 dn 7.10 Mar 750.50 dn 6.50 May 757.30 dn 5.80
SOYBEAN futures at the Chicago Board of Trade were slightly lower on Tuesday, but soyoil incurred more significant losses while soymeal edged up.
The United States Department of Agriculture reported the soybean harvest for the first time this year at five per cent complete. Also, 54 per cent were dropping leaves, up 23 points. The soybeans rated 52 per cent good to excellent, unchanged from the previous week.
All October options are scheduled to expire on Sept. 22.
In Brazil, temperatures have ranged from the low to mid 40 degrees Celsius. The heat plus dry conditions remained serious threats to soybean planting, which recently started.
WHEAT futures were mixed on Tuesday, with losses in the Chicago and Kansas City and gains for Minneapolis.
The USDA reported the spring wheat harvest advanced seven points to 93 per cent complete, while the planting of winter wheat progressed eight points to 15 per cent in the ground.
China is said to be acquiring 300,000 to 600,000 tonnes of wheat from France, while Japan issued a tender for 89,940 tonnes of milling wheat.
Two cargo vessels were loading 20,000 tonnes of wheat at the Ukrainian Black Sea port of Chornomorsk, bound for ports in Africa and Asia.
The India Meteorological Department forecast the country to receive normal to above normal monsoon rains in September. While the heavy rains were seven per cent above average so far this month, they were eight per cent below average for this year’s monsoon season.
With Australia experiencing increased dry conditions and a growing number of brush fires, the country’s Bureau of Meteorology declared an El Nino was underway.
CORN futures had a ‘Turnaround Tuesday’ following yesterday’s losses.
The U.S. corn harvest nearly double from last week to nine per cent complete. Corn mature added 20 points at 54 per cent and corn dented climbed eight points to 90 per cent. Conditions held at 52 per cent good to excellent.
Dredging operations were underway on the southern portions of the Mississippi River.
In international corn sales, Taiwan reportedly bought 65,000 tonnes from Brazil, Iran issued a tender for 180,000 tonnes, and South Korea is seeking 138,000 tonnes.
