By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 5 (MarketsFarm) – Intercontinental Exchange canola futures were weaker on Tuesday, as increased production and a lack of support from comparable oils weighed on values.
Statistics Canada announced on Monday that canola production rose from 17.4 million tonnes in September to now 18.3 million. Also, canola output is higher in Australia, going from 5.2 million tonnes to 5.5 million. However, production compared to last year in both countries is lower.
Declines in Chicago soyoil and Malaysian palm oil put pressure on canola, while European rapeseed was narrowly mixed. Chicago soybeans also closed either side of unchanged, and there were gains in soymeal. Global crude oil prices lost their increases from earlier in the day to be slightly lower.
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The Canadian dollar was down at mid-afternoon Tuesday with the loonie at 73.60 U.S. cents compared to Monday’s close of 73.85.
There were 43,374 contracts traded on Tuesday, which compares with Monday when 52,514 contracts changed hands. Spreading accounted for 27,400 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jan 665.60 dn 11.50 Mar 673.10 dn 10.90 May 680.50 dn 11.20 Jul 686.30 dn 11.50
SOYBEAN futures at the Chicago Board of Trade finished narrowly mixed on Tuesday, after trading weaker for most of the session.
The weather outlook for the continental United States has called for above normal temperatures for at least a week before returning to normal. Any precipitation is expected to be light.
Ahead of Friday’s supply and demand estimates from the U.S. Department of Agriculture, the average trade guess put 2023/24 soybean ending stocks at 242 million bushels, down 2.8 million from the November report.
The trade also projected soybean production in Brazil to decrease 2.8 million tonnes at 160.1 million and that for Argentina to increase 200,000 tonnes at 48.2 million. The global carryover is expected to lose 1.6 million tonnes at 112.9 million.
StoneX chopped its soybean forecast for Brazil by 3.1 million tonnes to now 161.9 million. CONAB, Brazil’s equivalent of the USDA, is set to publish its next supply and demand report on Thursday.
The Brazilian state of Mato Grasso reported that more than four per cent of its soybeans in needed to be replanted.
CORN futures were higher on Tuesday, getting spillover from wheat.
The trade predicted small changes in the USDA’s corn data for Friday, with the U.S. carryover to dip 2.8 million bushels at 215.3 million. The global carryout is to slip 1.6 million tonnes to 313.4 million.
As for South America, production in Argentina is expected to be down 300,000 tonnes at 54.7 million and that for Brazil to lose 1.8 million tonnes at 127.2 million.
StoneX trimmed its call on Brazil’s first corn crop to 26.45 million tonnes from 26.77 million and cut the second crop to 97.33 million tonnes from 98.96 million.
South Korea issued a tender for 68,000 tonnes of feed corn.
WHEAT futures were higher on Tuesday, due to strong export sales.
The USDA reported a private sale for 198,000 tonnes of old crop soft red winter wheat to China. Yesterday, China bought 440,000 tonnes of the same wheat.
The Kansas winter wheat rating is said to have risen eight points to 40 per cent good to excellent and the crop was now 96 per cent emerged.
Ahead of Friday’s S&D report, the trade projected the U.S. wheat carryover to shed 100,000 bushels at 684.1 million. As well, global stocks are expected to give up 200,000 tonnes at 258.49 million.
Australia reported its wheat crop is to be 25.5 million tonnes, up one million from the previous forecast. However, compared to last year’s production, it’s down 37 per cent.
APK Inform calculated 2023/24 wheat exports from Kazakhstan will be 9.40 million tonnes, down from last year’s 10.63 million.
