By Glen Hallick, MarketsFarm
WINNIPEG, April 11 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Tuesday in a correction from recent gains.
There was a little bit of pressure on the Canadian oilseed from small losses in European rapeseed. Gains in the Chicago soy complex as well as Malaysian palm oil tried to temper further decreases in canola. Upswings in global crude oil prices were spilling over into the vegetable oils.
A trader noted there’s upside to canola at this time. He pointed to less expensive rapeseed and a large canola harvest in Australia.
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Crush margins dipped little, taking some support away from canola. However those margins still remain rather wide.
The Louis Dreyfus Company announced today that it’s expanding its canola processing facility in Yorkton, Sask. The addition of another production line will boost the plant’s crushing capacity to more than two million tonnes per year.
The United States Department of Agriculture (USDA) released its April report on oilseeds, along with its monthly supply and demand estimates today. The USDA increased its called 2022/23 world rapeseed/canola production from 86.305 million tonnes in March to now 87.161 million. Production for Canada remained at 19 million tonnes.
The Canadian dollar was higher at mid-afternoon Tuesday, as the loonie was at 74.23 U.S. cents, compared to Monday’s close of 73.93.
There were 38,084 contracts traded on Tuesday, which compares with Monday when 29,597 contracts changed hands. Spreading accounted for 24,634 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola May 769.30 dn 4.70 Jul 747.10 dn 6.20 Nov 714.30 dn 6.20 Jan 716.30 dn 7.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Tuesday, as production in Argentina was cut.
The United States Department of Agriculture (USDA) issued its April supply and demand estimates and in something of a surprise, 2022/23 domestic soybean ending stocks were kept at 210 million bushels when the trade expected a decrease to 198 million. In fact there were no changes in U.S. soybeans from the March report.
Production in Argentina was chopped by six million tonnes at 27 million, and Brazil gained one million tonnes at 154 million. Globally, the soybean carryover for 2022/23 bumped up 280,000 tonnes at 100.29 million.
CORN futures closed lower on Tuesday following the release of the USDA report.
U.S. corn ending stocks were held over from March at 1.342 billion bushels, while the market expected a cut to 1.319 billion. The only changes domestically were a 10,000-bushel reduction in corn imports at 40,000 balanced off by an equal reduction in exports at 13.805 billion bushels.
The USDA reduced Argentina corn production for 2022/23 by three million tonnes at 37 million, while Brazil remains at 125 million tonnes. World ending stocks slip from 296.46 million tonnes to 295.35 million.
In the USDA crop progress report, corn planted nudged up one point overall at three per cent seeded as of April 9. The five-year average is two per cent. Most of corn being planted was in Texas, at 61 per cent complete.
WHEAT futures were down on Tuesday, due to a lack of demand for U.S. wheat.
The USDA made only minor changes to domestic wheat, which included adding 30 million bushels to ending stocks, now at 598 million. That exceeded trade calls of 574 million tonnes.
The USDA trimmed one point off of the winter wheat, now at 27 per cent good to excellent. The crop in Oklahoma was at 20 per cent good to excellent, with Texas at 17 per cent, Kansas at 13 per cent and Colorado was at 10 per cent good with zero excellent. Continuing hot and dry weather is set to further erode the winter wheat.
Meanwhile, the department reported that spring wheat planted registered at one per cent complete, with the bulk of it in Washington. The five-year average is four per cent.
As part of a means to repair sour relations, Australia announced it has suspended its World Trade Organization complaint over China high tariffs on its barley. In return, China said it will now review the tariffs.
The eastern and southern wheat-growing areas of Australia have received better-than-expected rainfall, providing a good start to the crop.
