By Glen Hallick, MarketsFarm
WINNIPEG, April 25 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Monday, but eased back from larger declines earlier in the session.
While profit-taking put pressure on canola, there was more from sharp losses in the Chicago soy complex, European rapeseed and Malaysian palm oil.
Spring planting will be further delayed on most of the eastern Prairies due to another storm plus below normal temperatures. Seeding is about to get underway in parts of Alberta, where precipitation would be welcome.
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Statistics Canada will issue its survey-based planting intentions report Tuesday morning. The markets are largely expected canola acres to be less than the 22.48 million seeded last year.
Also, the federal agency released its monthly crush and grain delivery reports. The March crush processed 739,879 tonnes of canola, down 22.8 per cent compared to a year ago. Canola deliveries for March were almost 1.37 million tonnes, falling 31.3 per cent from the previous March.
The Canadian dollar also regained some lost ground from earlier today, but the loonie was still lower. At mid-afternoon, it was at 78.46 U.S. cents, compared to Friday’s close of 78.73.
There were 22,330 contracts traded on Monday, which compares with Friday when 23,047 contracts changed hands. Spreading accounted for 15,780 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 1,184.70 dn 9.20
Nov 1,081.80 dn 2.40
Jan 1,084.80 dn 1.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday, due to lower crude oil prices.
The United States Department of Agriculture announced private sales soybeans to China that comprised of 66,000 tonnes of old crop and 468,000 tonnes of new crop. However, a potential COVID-19 lockdown of Beijing has the markets concerned of lower demand out of China.
In the USDA export inspections report for the week ended April 21, overseas shipments of soybeans came to 602,178 tonnes, falling 40 per cent from the previous week. Year-to-date exports reached 45.6 million tonnes, 16 per cent less than those this time last year.
The department is scheduled to release its crop progress report at 3 pm CDT. Trade expectations are for two to four percent of the U.S. soybeans to be planted.
Indonesia clarified its export ban on palm oil, stating the ban only applies to refined palm oil.
APK-Inform estimated Ukraine’s incoming sunflower crop is to produce 9.2 million to 9.6 million tonnes, compared to last year’s 16.6 million.
CORN futures were higher on Monday, supported by the wheat complex.
The USDA reported corn export inspections of 1.65 million tonnes, up 40 per cent from last week. The year-to-date shipments reached 34.88 million tonnes, 15.8 per cent behind those a year ago.
The markets pegged the planting of U.S. corn to be 10 to 13 per cent seeded.
Ukraine said it will extend its ban on transporting agricultural goods by rail. Also, reports stated Russian missiles struck five rail stations in Ukraine today and Russian artillery shelled the country’s ports.
WHEAT futures were mostly higher on Monday, due to a storm that struck Montana and North Dakota very likely delaying spring planting there.
Also, dryness remains a concern on the U.S. Midwest, while the eastern edge of the Southern Plains is expected to receive rain.
U.S. wheat export inspections were 287,997 tonnes, falling 35.5 per cent from the previous week. The year-to-date tallied 18.37 million tonnes, 18.9 per cent behind last year’s shipments.
Statistics Canada reported total wheat deliveries in March were nearly 2.06 million tonnes, down almost 32 per cent from a year ago.
APK-Inform placed Ukraine’s 2022/23 total grain exports at 29.9 million to 33.2 million tonnes, compared to last year’s 41.4 million.
India said it’s close to fulfilling its plan to export 1.4 million tonnes of wheat in April.
