By Glen Hallick, MarketsFarm
WINNIPEG, June 27 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) are stronger on Monday adding to Friday’s turnaround.
Support was derived from gains in the Chicago soy complex, but losses in European rapeseed and the overnight session in Malaysian palm oil tempered further increases. Modest upticks in crude oil prices lent support to the vegetable oil market.
A lack of major weather concerns applied some pressure on canola. The Prairies are forecast to receive moderate temperatures from much of this week.
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The United States Department of Agriculture is scheduled to issue its planted acres and quarter stocks reports on Thursday, The markets will be jockeying for position ahead of the reports.
The canola market will be positioning as well prior to next week’s acreage report from Statistics Canada.
The Canadian dollar was higher with the loonie at 77.67 U.S. cents, compared to Friday’s close of 77.32.
There were 23,134 contracts traded on Monday, which compares with Friday when 42,825 contracts changed hands. Spreading accounted for 11,902 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 901.10 up 18.60
Nov 889.40 up 19.20
Jan 895.60 up 19.40
Mar 902.00 up 20.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Monday, benefitting from increases in crude oil prices.
The United States Department of Agriculture (USDA) issued its export inspections report the week ended June 23. Soybeans shipments came to 468,309 tonnes, up 9.3 per cent from the previous week. Year-to-date export inspections reached 51.37 million tonnes, 10.4 per cent behind inspections this time last year.
The USDA is scheduled to release its planted acres and quarterly stocks reports on Thursday. The average trade guess put U.S. soybean acres for 2022/23 at 90.45 million, compared the March estimate of 90.96 million. In 2021/22, almost 87.2 million acres were planted.
Market expectations for soybean stocks average 965 million bushels, up 25.5 per cent from the same time last year.
CORN futures were lower on Monday, due to favourable weather for the U.S. Corn Belt.
Export inspections of corn amounted to 1.25 million tonnes, up 4.5 per cent from the previous week. Year-to-date inspections hit 47.42 million tonnes, down 16.9 per cent from those a year ago.
Market projections for planted corn acres average 89.86 million, slightly higher than the USDA’s March estimate of 89.49 million. A year ago U.S. farmers planted 93.36 million acres.
June corn stocks are projected to be 4.34 billion bushels, for a 5.6 per cent increase from the previous June.
Due to technical glitches, last week’s ethanol production report from the U.S. Energy Information Administration (EIA) has yet to be released.
Taiwan issued a tender for 65,000 tonnes of feed corn.
WHEAT futures were weaker on Monday, as good weather and expectations of winter wheat harvest making excellent progress weighed on values.
Outbound shipments of wheat tallied 352,404 tonnes and were up 1.2 per cent from the previous week. So far into the 2022/23 wheat marketing year, 1.34 million tonnes have been exported, 13 per cent behind this time last year.
Planted all wheat acres for 2022/23 are projected to be 47.02 million, a dip of 0.7 per cent from the March estimate.
Total wheat stocks are expected to be 685 million bushels, down 18.9 per cent from the previous June.
In international purchases, Bangladesh and Jordan are seeking wheat, while Taiwan tendered for 40,000 tonnes, Saudi Arabia bought 495,000 tonnes and Egypt acquired 180,000 tonnes.
