WINNIPEG — The ICE Futures canola market was lower on Tuesday following a sharp decline in crude oil.
Crude oil fell by nearly US$2 per barrel on Tuesday due to weakened demand. In turn, European rapeseed and Malaysian palm oil were also down with the latter resuming trading after a holiday.
At mid-afternoon, the Canadian dollar lost more than one-half of a United States cent compared to Monday’s close, giving canola prices some support.
Statistics Canada (StatCan) will release its first survey-based seeding intentions report for 2023-24 on Wednesday morning, with the trade anticipating Canadian canola acres to increase to 22 million from 21.4 million the previous year.
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About 27,144 canola contracts were traded on Tuesday, which compares with Monday when 26,836 contracts changed hands. Spreading accounted for 17,228 of the contracts traded.
CORN held steady at the Chicago Board of Trade (CBOT) on Tuesday, providing a reprieve from a four-day slide.
Canadian corn acres for the 2023-24 marketing year could total 3.7 million, up 80,000 acres, ahead of Wednesday’s StatCan 2023-24 seeding intentions report. Trade estimates range from 3.4 million to 3.8 million.
The United States Department of Agriculture (USDA) reported that 14 per cent of the country’s corn crop was planted as of April 23, up from eight per cent last week and in line with trade expectations. National emergence is at three per cent, compared to the two per cent average at this time of year.
Crop consultant Dr. Michael Cordonnier held his estimates for Argentina’s and Brazil’s corn crops at 36 million and 123 million tonnes, respectively.
SOYBEANS came down for the fifth straight day, losing more than 70 U.S. cents per bushel during that span.
Analysts estimated 5.3 million acres will be used to grow soybeans in Canada, similar to last year’s figure.
In the U.S., nine per cent of the country’s soybean crop was planted as of April 23, up four points from last week and up five points from the five-year average.
Cordonnier cut his production estimate for Argentina’s soybean crop by one million tonnes to 23 million, while holding Brazil’s estimate steady at 153 million.
All three major U.S. WHEAT varieties continued their respective downturns on Tuesday.
Analysts forecast Canada to grow wheat on 26.3 million acres this year, compared to 25.4 million last year. Spring wheat is expected to increase 900,000 acres on average to 18.9 million.
The USDA reported on Monday that 26 per cent of the U.S. winter wheat crop is rated good to excellent, the worst rating at this time of year since 1989.
Turkey imposed a 130 per cent tariff on wheat and corn imports earlier today to protect agricultural sectors ahead of next month’s elections.
