By Glen Hallick, MarketsFarm
WINNIPEG, May 4 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Monday due to weakness in the soy complex at the Chicago Board of Trade.
Although canola was down, a trader said it remained sturdier than other commodities.
European rapeseed also weighed on canola values, while support came from slightly higher Malaysian palm oil.
In Alberta, the harvest of overwinter canola has generated decent yields and good quality. The province’s overwinter wheat harvest was also on the positive side.
The Canadian dollar was at 71.00 U.S. cents at mid-afternoon, compared to Friday’s close of 71.09.
There were 12,080 contracts traded on Monday, which compares with Friday when 13,029 contracts changed hands. Spreading accounted for 8,612 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Canola Jul 463.60 dn 2.60
Nov 470.90 dn 2.80
Jan 476.80 dn 2.90
Mar 482.70 dn 2.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday, due to trade issues between the United States and China.
Trade relations between the two countries soured following allegations made by U.S. President Donald Trump and Secretary of State Mike Pompeo. Trump has continued to blame China for the global COVID-19 pandemic and accused the country of not meeting its purchase obligations in the Phase One trade agreement. Pompeo alleged the coronavirus “emerged from a Chinese laboratory,” but didn’t provide any evidence to back up his claim.
Ahead of the U.S. Department of Agriculture’s (USDA) weekly crop progress report, market expectations for soybean planting vary from 16 to 35 per cent complete.
In the Fats and Oils report released on May 1 by the USDA, there were 192.1 million bushels of soybeans crushed in March. That set a new monthly record.
Egypt issued an international tender for 30,000 tonnes of soyoil.
CORN futures were lower on Monday, caught up spillover from soybeans.
Despite President Trump’s order to reopen U.S. meat packing plants, Tyson Foods stated it expects to keep some of its plants closed while others will contend with low production amid the pandemic. The company cited severe shortages of workers as to why and warned there could be widespread meat shortages in the coming weeks.
There have been reports of farmers in North Dakota burning their overwinter corn crops as the corn was said to be of poor quality.
The USDA announced a private sale of 115,800 tonnes of corn for delivery to unknown destinations during the current marketing year.
The monthly corn crush was about 411.8 million bushels in March, according to the USDA. That marked the lowest amount for March since reporting began in 2014.
WHEAT futures finished higher on Monday despite trading either side of steady for most of the session.
Trade predictions put U.S. spring wheat planting at about 30 per cent complete. The ratings for U.S. winter wheat were projected to be 53 per cent good to excellent.
Dry conditions in the U.S., European Union, Russia and the Black Sea region were easing with rain.
The EU increased its wheat export forecast by six per cent to now 31.8 million tonnes, while it cut its wheat production estimate by 0.2 per cent to now 125.8 million tonnes.