By Glen Hallick, MarketsFarm
WINNIPEG, March 29 (MarketsFarm) – Although Intercontinental Exchange (ICE) canola futures closed lower on Tuesday, they came well away from much larger declines earlier in the session.
Russia’s announcement that it’s reducing operations around Ukraine’s capital of Kyiv, as well as Chernihiv to the north sent crude and edible oil prices tumbling. As the day progressed, those markets regained a sizeable portion of their losses.
That still meant the Chicago soy complex was down hard, as were European rapeseed futures, especially its nearby May contract. Malaysian palm oil overcame the heavy pressure to finish mostly on the plus side.
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Thanks to a lower United States dollar, the Canadian dollar pushed higher. By mid-afternoon the loonie climbed to 80.03 U.S. cents, compared to Monday’s close of 79.74.
There were 20,477 contracts traded on Tuesday, which compares with Monday when 14,185 contracts changed hands. Spreading accounted for 9,334 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 1,134.20 dn 9.00
Jul 1,113.20 dn 7.20
Nov 960.00 dn 8.10
Jan 959.90 dn 8.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Tuesday, following news that Russia scaled back part of its offensive in Ukraine. That weakened crude oil prices and put pressure on edible oils.
With good weather in the forecast for Argentina this week, a lot of progress is expected in its soybean harvest.
The Brazil Association of Vegetable Oils lowered its projection on the country’s soybean production by 7.7 per cent at 125.3 million tonnes. The association estimated soybean exports to peak at 77.7 million tonnes, for a drop of 10.6 per cent compared to last year.
India said it will increase its sunflower oil imports from Russia, despite numerous other countries imposing economic sanctions against the latter. India hasn’t condemned Russian aggression in Ukraine.
WHEAT futures were down hard on Tuesday, also on the war news and as weather for the United States Southern Plains improving.
In winter wheat conditions by state, Kansas reported its winter wheat was 32 per cent good to excellent for an improvement of seven points over last week. Oklahoma slipped three points to 18 per cent. Texas bumped up one point to seven per cent. Colorado fell eight points to 11 per cent. Nebraska lost nine points at 27 per cent. South Dakota gained two points at 26 per cent. Montana fell 10 points over the last month at 11 per cent.
More flooding in Australia from heavy rains is posing a threat to crops in Queensland and New South Wales.
CORN futures were weaker on Tuesday in concert with soybeans and wheat.
Corn planting in Texas was reported to be 51 per cent complete, with Louisiana also at 51 per cent. Mississippi was at five per cent finished with Arkansas at two and Kansas at one.
While an end to the war in Ukraine would greatly help farmers plant their crops, the country’s ports are in shambles. Exports would require alternative means, such as rail and using ports in other countries.
