Glacier FarmMedia MarketsFarm -– The ICE Futures canola market traded in negative territory on Tuesday despite receiving some support from comparable oils.
Relatively favourable Prairie weather conditions and large old crop supplies weighed on values, with bearish technical signals contributing to the declines as the November contract slipped below its 50-day moving average.
Chicago soyoil was steady, while European rapeseed was mostly higher. Malaysian palm oil made gains in the nearby contracts, while crude oil was also positive.
At mid-afternoon, the Canadian dollar was up less than one-tenth of a U.S. cent compared to Monday’s close.
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There were 59,208 canola contracts traded on Tuesday, which compares with Monday when 53,252 contracts changed hands. Spreading accounted for 39,038 of the contracts traded.
The three major United States WHEAT varieties all traded higher on Tuesday for the first time since May 28, however, they failed to recover all of their respective losses on Monday.
The U.S. Department of Agriculture (USDA) reported on Monday that spring wheat planting in the U.S. was 98 per cent complete as of June 6, two points above average. Conditions dropped two points at 72 per cent good to excellent.
Meanwhile, U.S. winter wheat was 89 per cent headed as well as 12 per cent harvested, double the average. Conditions were also down two points from the week prior at 47 per cent good to excellent.
In total, 351,077 tonnes of U.S. wheat were shipped during the week as of June 9, at the lower end of trade estimates.
South Korea passed on a tender of 40,000 tonnes of Canadian wheat and instead purchased 50,000 tonnes from the U.S.
Trade group Coceral raised its soft wheat production estimate for the European Union and the United Kingdom combined by 400,000 tonnes at 134.5 million.
Although July CORN traded to its highest level since May 30, it closed in the red.
The U.S. corn crop was 95 per cent planted, matching the historical pace and four points ahead of last year. Conditions dropped one point from last week at 74 per cent good to excellent.
In addition, 1.34 million tonnes of corn were shipped during the week ended June 6, down 76,000 from last week but up 170,000 from last year. Exports are up 25.8 per cent from one year ago at 39.12 million tonnes.
Crop consultant Dr. Michael Cordonnier left his estimate for U.S. corn production unchanged at 14.62 billion bushels, as well as his Argentine estimate at 47 million tonnes. He raised the Brazilian estimate by two million tonnes at 114 million.
The July SOYBEAN contract continued its recent volatility by recording a double-digit loss and erasing Monday’s gains.
The U.S. soybean crop was 87 per cent planted, three points above average and nine points more than last week. Initial conditions were reported at 72 per cent good to excellent compared to the 65 per cent average and 60 per cent one year ago.
As well, 231,300 tonnes of soybeans were shipped, at the lower end of trade expectations, with the marketing year total now at 40.55 million, below last year’s pace.
Cordonnier left his soybean production estimates unchanged at 4.46 billion bushels for the U.S., 147 million tonnes for Brazil and 50 million tonnes for Argentina.
Malaysian palm oil production increased 13.5 per cent in May at 1.70 million tonnes according to the Malaysian Palm Oil Board, slightly above trade expectations for 1.65 million.
