By Glen Hallick, MarketsFarm
WINNIPEG, March 7 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Tuesday pulled down by losses in comparable oils.
Comments made by United States Federal Reserve Chair Jerome Powell triggered sharp declines in global crude oil prices. In turn, that put pressure on the vegetable oils. The Chicago soy complex, European rapeseed and Malaysian palm oil were down significantly on the day.
While canola crush margins remain very strong, they have become relatively steady over the last couple of days.
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With a surge in the U.S. dollar, the Canadian dollar was taking a tumble at mid-afternoon Tuesday. The loonie dropped to 72.69 U.S. cents, compared to Monday’s close of 73.45.
There were 19,651 contracts traded on Tuesday, which compares with Monday when 16,852 contracts changed hands. Spreading accounted for 7,602 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola May 812.90 dn 8.90 Jul 808.30 dn 8.50 Nov 781.70 dn 9.80 Jan 786.50 dn 9.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Tuesday, pulled down by sharp declines in crude oil.
The United States Department of Agriculture (USDA) is set to publish its monthly supply and demand estimates tomorrow at 11 am CST. U.S. soybean ending stocks are expected to dip slightly from February’s 225 million bushels.
Market expectations place the USDA’s call on Argentine soybean production at 32 million to 40 million tonnes, and Brazil output at 151 million to 154.7 million tonnes.
Dr. Michael Cordonnier of Soybean and Corn Advisor cut one million tonnes off of his call on Argentina’s soybean crop, now at 31 million tonnes. Cordonnier kept his Brazil estimate at 151 million tonnes.
AgRural said the Brazil soybean harvest was at 43 per cent finished, progressing 10 points on the week.
China reported its January/February soybean imports of 16.17 million tonnes were the largest amount since 2008.
India said its considering an increase to its palm oil import duty as a means to prop up domestic rapeseed prices.
CORN futures were lower on Tuesday in feeling the pressure from soybeans.
Corn planting in Texas was reported to be 20 per cent complete, seven points ahead of the five-year average.
The U.S. has called for formal trade talks with Mexico over the latter’s plans to limit imports of genetically modified corn.
In tomorrow’s S&D report, U.S. corn ending stocks are projected to nudge up a little from last month’s 1.27 billion bushels.
The range of trade guesses puts Argentina corn output at 41 million to 46 million tonnes and Brazil production at 122 million to 130.6 million tonnes.
Safras and Mercado pegged the harvest of Brazil’s first corn crop at 35.4 per cent complete. The planting of the second corn crop is reported to be 70 per cent complete, 15 points ahead of this time last year.
WHEAT futures were mixed on Tuesday, with small gains in Chicago and Kansas City and a decline in Minneapolis.
The USDA reported that winter wheat in Kansas rated 17 per cent good to excelled, for a slip of two points from last week. In Texas, its winter wheat held at 19 per cent good to excellent and the wheat was 39 per cent in Oklahoma. Drought continued to be the main driver for the poor ratings.
The carryover for U.S. wheat is expected to increase from last month’s 568 million bushels.
A report placed Russian grain exports so far in 2022/23 at 40 million tonnes. Total exports for the current marketing year are projected to be 55 million to 60 million tonnes.
