By Marlo Glass, MarketFarm
WINNIPEG, June 30 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts varied widely at Tuesday’s close, with losses in the July contracts attributed to positioning ahead of the contract’s expiry date.
Strength in the Canadian dollar kept a lid on gains for canola values. The loonie was around 73.5 United States cents for most of the day.
Strength in Chicago soybeans provided some support to canola values. Soybeans were higher following a report from the United States Department of Agriculture that detailed decreased soybean stocks.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Tuesday, following two reports from the United States Department of Agriculture (USDA).
The soy complex was stronger following the acreage report from the USDA. Planted soybean acres in the U.S. are estimated at 83.8 million acres. Although that was a 300,000 acre increase from March estimates, it’s lower than pre-report expectations. In 2019, soybean area totalled 76.1 million acres.
The USDA’s grain stocks report also contributed to the positive tone for soybean prices. Soybean stocks are down by 22 per cent compared to last year, totalling 1.39 billion bushels.
CORN futures were also stronger on Tuesday.
U.S. corn area was pegged at 92.0 million acres by the USDA, which was about five million acres below the previous estimate.
That’s still considerably higher than the 89.7 million seeded in 2019.
Larger-than-expected corn stocks have kept pressure on gains for corn values. The grain stocks report pegged corn stocks at 5.2 billion bushels.
Large supplies and good growing conditions in the Corn Belt could keep a lid on corn prices, according to market participants.
WHEAT futures were higher on Tuesday.
Total wheat area in the U.S. is estimated at 44.3 million acres, which is the smallest wheat crop in the country since record-keeping began in 1919.
As of June 28, 41 per cent of the winter wheat crop has been harvested.
Spring wheat ratings were six points lower, while winter wheat conditions were two point higher.