By Glen Hallick, MarketsFarm
WINNIPEG, July 12 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) fell hard on Tuesday, pulled down by macro selling in the markets.
As global crude oil prices retreated that dragged vegetable oils lower. There were heavy declines in the Chicago soy complex and European rapeseed, while losses in the Malaysian palm oil off session weren’t as severe.
The United States Department of Agriculture issued its monthly supply and demand estimates today, with the latest numbers doing very little to stem the drive downward in soybeans.
Read Also
Canadian Financial Close: Loonie returns above 72 U.S. cents
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar on Friday finally turned around to close higher,…
Drought conditions on the Prairies have improved this spring, according to the Canadian Drought Monitor. It estimated 39 per cent of the farmland across the region was abnormally dry to still being in extreme drought. However, the large amounts of rain helped to improve those areas in extreme drought.
At mid-afternoon, the Canadian dollar was a pinch lower with the loonie at 76.88 U.S. cents, compared to Monday’s close 76.92.
There were 14,399 contracts traded on Tuesday, which compares with Monday when 16,193 contracts changed hands. Spreading accounted for 7,466 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 834.40 dn 32.30
Jan 841.30 dn 32.00
Mar 847.70 dn 32.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were down hard on Tuesday, as macro selling drove global crude oil prices lower taking vegetable oils along.
The United States Department of Agriculture (USDA) released its July supply and demand estimates, pegging soybean production for 2022/23 at 4.51 billion bushels. That’s a 2.9 per cent drop in from the June estimate, but 1.6 per cent more than the 2021/22 harvest. Ending stocks were estimated at 230 million bushels, down 17.9 per cent from the previous report and 0.3 per cent more than in 2021/22.
Global soybean ending stocks dipped 0.9 per cent from June at 99.6 million tonnes. The USDA kept its estimate for the 2021/22 Brazil soybean crop at 126 million tonnes. Last week CONAB placed the harvest at 124.05 million tonnes. The USDA also held its projection for the next Brazil crop at 149 million tonnes.
The U.S. crop ratings put soybeans at 62 per cent good to excellent, down one point from last week.
CORN futures were also weaker on Tuesday, caught up in the macro selling.
The July S&D report placed U.S. corn production for 2022/23 at 14.51 billion bushels, up 0.3 per cent from the June estimate and four per cent less than what was grown in 2021/22. Ending stocks in the July report bumped up five per cent from last month at 1.47 billion bushels, but are 2.6 per cent less than the 2021/22 carryover.
The USDA estimated the global corn carryout for 2022/23 at 312.90 million tonnes, that’s up slightly from the previous year’s 312.28 million. Corn production in Argentina and Brazil for 2022/23 was maintained at 55 million and 126 million tonnes respectively.
The department held U.S. corn ratings at 64 per cent good to excellent.
WHEAT futures were in retreat on Tuesday, in sympathy with soybeans and corn.
Total U.S. wheat production in 2022/23 was set to be 1.78 billion bushels, up 2.5 per cent from June and 8.2 per cent more than last year. Wheat ending stocks rose 1.9 per cent at 639 million bushels, but were down 3.2 per cent from the previous year.
The world wheat carryout for 2022/23 was pegged at 267.52 million tonnes up slightly from last month, but down 4.5 per cent from the 2021/22 carryover.
U.S. spring wheat climbed four points at 70 per cent good to excellent. The winter wheat harvest reached 63 per cent finished, up nine points on the week.
France slashed its wheat production by 7.2 per cent at 32.9 million tonnes due to hot, dry weather and a decline in planted acres.
