Glacier FarmMedia MarketsFarm — The ICE Futures canola market continued its rally on Tuesday amidst mostly positive sentiment in comparable oils.
Crude oil was trading higher due to speculation over possible interest rate cuts in the United States. Chicago soyoil and Malaysian palm oil were also stronger. However, European rapeseed was lower.
At mid-afternoon, the Canadian dollar was up three-tenths of a U.S. cent compared to Monday’s close.
There were 61,170 canola contracts traded on Tuesday, which compares with Monday when 54,619 contracts changed hands. Spreading accounted for 29,698 of the contracts traded.
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The July Minneapolis spring WHEAT contract hit its highest price in a month, while its Kansas City hard red and Chicago soft wheat counterparts on the Chicago Board of Trade (CBOT) reached two-month highs. All three contracts ended the day above US$6 per bushel.
The United States winter wheat crop dropped to 50 per cent good to excellent after receiving a 55 per cent rating the week before, according to the U.S. Department of Agriculture. The winter wheat crop was also 17 per cent headed, four points above the five-year average.
As for the country’s spring wheat crop, it was 15 per cent planted, five points above average and two per cent emerged, one point below normal.
The European Union’s crop monitoring service MARS raised its forecast for the region’s soft wheat crop to 5.93 tonnes per hectare, up from 5.91 in March and two per cent above last year.
Taiwan tendered to purchase 106,000 tonnes of wheat for June-July shipment, while Algeria tendered for 50,000 tonnes of durum for June shipment.
For the first time in 2024, the July SOYBEAN contract rose in price for the third straight day. The contract also traded at its highest level since April 15.
Soybean plantings in the U.S. were eight per cent complete as of April 21, matching last year’s pace while being one point ahead of trade expectations and double the five-year average.
Crop consultant Dr. Michael Cordonnier left his South American soybean production estimates unchanged at 147 million tonnes for Brazil and 51 million for Argentina.
Iran and Algeria purchased 60,000 and 70,000 tonnes of soymeal, respectively.
The July CORN contract also rose for the third straight day, staying above US$4.50/bu. and reaching its highest level since April 1.
The U.S. corn crop was 12 per cent planted, matching last year’s pace and two points above the five-year average. Three per cent of the crop has also emerged, one point above average at this time of year.
The weekend will see widespread precipitation across corn-growing regions in the U.S.
Dr. Cordonnier left his production estimates unchanged for Brazilian corn at 112 million tonnes and Argentine corn at 50 million.
The Argentine crop is showing some evidence of spiroplasma, also known as corn stunt disease, which can greatly reduce production.
