By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures finished Tuesday with small gains in choppy trading.
Support for canola came from a weaker Canadian dollar, which made its canola exports more palatable to international buyers. As the United States dollar surged upward on the U.S. Dollar Index, the loonie fell back to 74.10 U.S. cents compared to Monday’s close of 74.43.
Additional support came from upticks in Malaysian palm oil, European rapeseed, as well as Chicago soybeans and soymeal. Losses in Chicago soyoil tempered canola’s upside. Global crude oil prices were mixed, which provided little direction to vegetable oils.
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There were 30,643 contracts traded on Tuesday, which compares with Monday when 12,804 contracts changed hands. Spreading accounted for 17,750 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Mar 629.80 up 1.10 May 636.40 up 1.10 Jul 641.60 up 0.60 Nov 639.80 up 0.60
SOYBEAN futures at the Chicago Board of Trade were higher in choppy trading on Tuesday, which also saw sharp losses in soyoil.
The United States Department of Agriculture issued its export inspections report for the week ended Jan. 11, and showed soybeans at 1.26 million tonnes, compared to the 1.04 million the previous week. The year-to-date tally climbed to 25.58 million tonnes, but well short of the 32.43 million this time last year.
Ahead of the U.S. National Oilseed Processors Association monthly report, the trade projected the December soybean crush at 189 million to 193.2 million bushels.
In the latest round of estimates on the Brazil soybean crop, AgRural lowered its call to 150.1 million tonnes, Soybean and Corn Advisor dropped to 149 million, and Brazil producer association Aprosoja plummeted to 135 million.
The Brazil soybean harvest was 2.1 to 2.4 per cent finished, depending on the source.
Consultancy Capeco pegged Paraguay’s soybean harvest at 9.5 million tonnes.
Egypt issued a tender for 1,000 tonnes of soyoil and 500,000 tonnes of sunflower oil.
India has extended the cut to its edible oil import duty to March 2025.
China reported its economy grew 5.2 per cent in 2023, edging out forecasts of five per cent.
CORN futures were lower on Tuesday, as pressure from wheat overpowered support from soybeans.
The USDA said corn inspections came to 875,621 tonnes, falling from last week’s 1.09 million. However, the year-to-date remained ahead of last year at 13.92 million tonnes versus 10.78 million.
The USDA announced a private sale of 126,700 tonnes of old crop corn to Mexico.
AgRural placed the harvest of Brazil’s first corn crop at just over five per cent complete and the planting of the second corn crop at less than 0.5 per cent finished. The consultancy projected Brazil’s total corn output at 114.1 million tonnes.
WHEAT futures were weaker on Tuesday due to a stronger U.S. dollar.
The USDA reported wheat export inspections of 234,205 tonnes, falling from 501,910 last week. At 10.38 million tonnes, the year-to-date also was behind last year’s pace of 12.43 million.
The frigid cold snap that gripped much of the continental U.S. was beginning to recede with temperatures projected to steadily climb towards normal levels. Precipitation was also forecast for the coming days, especially for the Great Lakes, the Pacific Northwest, the Upper Plains, along with the Mississippi and Ohio River valleys.
Algeria said it’s seeking to buy 50,000 tonnes of milling wheat plus 50,000 tonnes of barley. Tunisia issued a tender for 150,000 tonnes of soft wheat plus 25,000 tonnes of durum.
