By Glen Hallick, MarketsFarm
WINNIPEG, May 5 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were slightly higher on Tuesday, getting support from Chicago soyoil and European rapeseed.
Planting and harvesting has continued across the Prairies, with more of the harvest completed in Alberta and Saskatchewan, according to a trader.
Also, he said trading will likely be choppy as the markets take a ‘wait and see’ attitude towards the Statistics Canada crop area report on Thursday.
The Canadian dollar was at 71.28 U.S. cents at mid-afternoon, compared to Monday’s close of 71.00.
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There were 13,806 contracts traded on Tuesday, which compares with Monday when 12,080 contracts changed hands. Spreading accounted for 10,384 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 464.30 up 0.70
Nov 471.50 up 0.60
Jan 477.60 up 0.80
Mar 483.80 up 1.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly higher on Tuesday, due to gains in crude oil.
For the fifth-consecutive session, West Texas Intermediate (WTI) was on the rise as global production cuts will soon begin to erode the glut of oil on the market. By mid-afternoon Tuesday WTI was up US$3.52 at US$26.31 per barrel.
The U.S. Department of Agriculture (USDA) reported a private sale today of a 378,000 tonnes of soybeans to China. About a third is to be delivered this marketing year and the remainder during 2020/21.
A Trump administration official commented the U.S. won’t pursue new tariffs against China, if China adheres to its purchasing agreements as stipulated in the Phase One trade deal.
In the USDA weekly crop progress report issued on Monday, soybean planting as of May 3 stood at 23 per cent complete, which is more than double of the five-year average.
Brazil exported a record 16.3 million tonnes of soybeans in April, far exceeding the previous record of 12.35 million tonnes set in May 2018.
CORN futures were also slightly higher on Tuesday, thanks to spillover from soybeans.
Corn planting in the U.S. reached 51 per cent complete, according to the USDA. That’s 12 points ahead of the five-year average. Corn emerged was at eight per cent and slightly under the average.
The USDA reported a private sale today of 109,135 tonnes of corn to Mexico. Approximately 41 per cent is to be delivered in the current marketing year and the remainder during 2020/21.
Dry conditions in Brazil could see its corn production fall under 100 million tonnes to as low as 95 million.
WHEAT futures were mixed on Tuesday, with small gains for Chicago and Minneapolis while Kansas City incurred a loss.
The USDA reported spring wheat planting was at 29 per cent finished, which is 14 points behind the five-year average. About six per cent of the spring wheat has emerged, which also well back of the average. Winter wheat rated 55 per cent good to excellent, for a gain of one point from the previous week. Approximately 32 per cent of the winter wheat has headed out.
Despite rain alleviating some of the dry conditions in Europe and the Black Sea region, Romania reported its wheat crop will suffer this year. Romania is the European Union’s second largest wheat exporter and a key supplier to the Middle East. Reduced production estimates are to be released next week.
Ukraine said it will consider export quotas for 2020/21 to help ensure price stability in the country. For 2019/20, Ukraine set an export quota of 20.2 million tonnes.
