By Glen Hallick, MarketsFarm
WINNIPEG, July 4 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures closed higher on Tuesday, but those gains faded sharply towards the end of the session.
While the ICE canola market resumed trading today after Monday’s holiday, the markets in the United States are closed to mark Independence Day. Trading at the Chicago Board of Trade is scheduled to resume Wednesday morning at 8:30 CDT.
Support for the Canadian oilseed came from sharp upticks in the Chicago soy complex on Friday and Monday. The U.S. Department of Agriculture significantly reduced estimates for planted acres and quarterly stocks for soybeans.
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Increases in global crude oil prices generated spillover for the vegetable oils. However that only tempered losses in European rapeseed and Malaysian palm oil.
The Prairies are expected to remain dry this week, except for rain in the outlook for Alberta. Temperatures are to be in the low to mid 20 degrees Celsius.
The Canadian dollar was slightly higher at mid-afternoon Tuesday, as the loonie rose to 75.63 U.S. cents, compared to Friday’s close of 75.53.
There were 22,328 contracts traded on Tuesday, which compares with Friday when 43,175 contracts changed hands. Spreading accounted for 8,894 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 739.40 up 3.00 Jan 744.50 up 1.60 Mar 748.60 up 0.90 May 752.70 up 2.70
SOYBEAN futures at CBOT were stronger on Monday, with sharp gains also seen in soyoil while soymeal stepped back a little.
The United States Department of Agriculture reported the country’s soybeans were 50 per cent good to excellent as of July 2, dipping one point from the previous week. Soybeans blooming were 24 per cent, increasing 14 points on the week, and four ahead of the five-year average. Soybeans setting pods were reported for the first time this year at four per cent, twice the five-year average.
The USDA said export inspections of soybeans came to 250,055 tonnes as of June 29, jumping 71 per cent from the previous week. Year-to-date inspections were just short of 49.42 million tonnes, compared to the 51.88 million this time last year.
Saudi Arabia announced it will push its one-million-barrel-per-day crude oil production cut through to the end of August, and Russia said it will reduce its crude oil exports by 500,000 BPD starting next month.
German export group DBV estimated that country’s 2023 winter rapeseed production at 4.11 million tonnes, down four per cent from the previous year. Meanwhile, Strategie Grain pegged European Union rapeseed production for 2023 at 19.8 million tonnes, down 600,000 tonnes from its previous estimate.
CORN futures were a pinch lower on Monday as the six to 10-day weather outlook has called for rain over most of the U.S. Corn Belt.
U.S. corn rated 51 per cent good to excellent, nudging up one from a week ago. Corn silking doubled to eight per cent, a point shy of the average pace.
The USDA said corn export inspection amounted to 642,900 tonnes on the week, up nearly 17 per cent from a week ago. The year-to-date was 33.13 million tonnes, about 31.5 per cent less than a year ago.
AgRural upped its call on Brazil’s safrinha harvest by five million tonnes at 102.9 million. The consultancy pegged the harvest at 17 per cent finished. However, StoneX deemed the second corn harvest to be 105.2 million tonnes, up from its previous call of 102.9 million.
WHEAT futures were lower on Monday, in sympathy with corn.
The USDA said the winter wheat harvest reached 37 per cent complete, progressing 13 points during the week. However it was nine points behind the average pace. The crop held at 40 per cent good to excellent, but Kansas was at 16 per cent with Oregon at 21 per cent, Michigan at 25 per cent, and South Dakota at 26 per cent.
The department reported the spring wheat was 48 per cent good to excellent, with South Dakota at 26 per cent and North Dakota at 40 per cent. Spring wheat headed was 51 per cent, up 20 points from a week ago and five ahead of pace.
U.S. wheat export inspections tallied 336,349 tonnes, 64.5 per cent better than the previous week. The year-to-date topped 1.09 million tonnes, 32 per cent behind this time last year.
Total grain exports for Russia was projected to be 55 million tonnes in 2023, two million less than in 2022. A top Russian official added the Putin government sees no reason to further extend the Black Sea export deal past its July 18 expiry.
Germany’s winter wheat for 2023 is expected to be 20.59 million tonnes, down seven per cent from a year ago.
