By Glen Hallick, MarketsFarm
WINNIPEG, March 15 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were narrowly mixed on Tuesday, with losses in the old crop months and gains in the new crop positions.
A trader noted the rolling out of the May contract is underway, with most going into new crop November. He also said there is sufficient snow cover on the Prairies in those regions that grow most of the canola.
Weakness in global crude oil prices weighed on edible oil values. That led to declines in the Chicago soy complex, Malaysian palm oil and most European rapeseed positions. The exception being rapeseed’s nearby May contract which was higher.
Read Also
Canadian Financial Close: Loonie virtually unchanged
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar remained firm on Friday, along with its United…
Tight supplies and the need to ration demand were supportive of canola. However, the trader said the Canadian oilseed is looking “overbought and overpriced,” particularly its November contract.
A strike could hit Canadian Pacific Railway with about 3,000 members of the Teamsters Canada Rail Conference set to walk off the job at midnight tonight. The labour dispute could throw CP’s transportation operations into chaos.
There were 17,078 contracts traded on Tuesday, which compares with Monday when 16,431 contracts changed hands. Spreading accounted for 10,762 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 1,119.70 dn 2.50
Jul 1,094.80 dn 1.70
Nov 934.90 up 1.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Tuesday, due to another round of COVID-19 lockdowns in China. Those have raised concerns over the country’s crude oil demand, which led to sharp drops in global prices.
The United States National Oilseed Processors’ Association said the February crush used up 165.06 million bushels of soybeans, which was line with trade expectations. Soyoil stocks gained 500,000 pounds at 2.51 billion pounds.
AgRural estimated the soybean harvest in Brazil at 64 per cent complete, up nine points from last week. Safras and Mercado cut 3.1 per cent from its projection of Brazil soybean exports at 78 million tonnes.
Soybean and Corn Advisor’s Dr. Michael Cordonnier chopped one million tonnes off of his projection for the Brazilian soybean crop, now at 123 million tonnes. He kept his forecasts for Argentina and Paraguay at 39 million and five million tonnes respectively.
CORN futures were higher on Tuesday, as support from wheat overpowered pressure from soybeans.
AgRural placed Brazil’s first corn harvest at 52 per cent complete, while the planting the second crop reached 94 per cent finished.
Cordonnier maintained his estimates for corn production in Brazil and Argentina at 112 million and 49 million respectively.
South Korea issued a tendered for 210,000 tonnes of feed corn and Iran is looking to purchase 60,000 tonnes of corn, barley and soymeal.
WHEAT futures spiked on Tuesday because of global supply concerns.
Winter wheat conditions in the U.S. included Kansas at 23 per cent good to excellent, down one point from last week; Texas at six per cent, also down one; Colorado at 18 per cent, slipping back three; and Oklahoma at 24 per cent, for a gain of nine. Meanwhile, Arkansas registered at 71 per cent good to excellent.
Reports said Russia has banned grain exports until June 30 to those countries that were once part of the Soviet Union that are not favourable to the Putin regime.
Approximately 28 per cent of Ukraine’s winter wheat crop is reported to be lost due to Russian aggression. APK-Inform estimated that 39 per cent fewer total grain acres will be planted in Ukraine because of the war, lowering the total to 11.6 million.
In international sales, Turkey is looking for 270,000 tonnes of milling wheat, while Japan issued a tender for a total of 104,000 tonnes of wheat from Australia, Canada and the U.S. Also for milling wheat, Jordan wants to acquire 120,000 tonnes and Bangladesh is seeking 50,000 tonnes.
