WINNIPEG — The ICE Futures canola market showed weakness on Tuesday, with the November and January contracts briefly falling below the C$800 per tonne mark.
Malaysian palm oil was down, while European rapeseed was mostly lower. Chicago soyoil turned around to end the day higher. Meanwhile, crude oil made gains due to tightening supply and China’s planned measures to boost its economy.
At mid-afternoon, the Canadian dollar was steady compared to Monday’s close.
About 32,517 canola contracts were traded on Tuesday, which compares with Monday when 28,472 contracts changed hands. Spreading accounted for 14,344 of the contracts traded.
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Despite crop quality concerns, CORN lost a small fraction on Tuesday of the gains that were made on the Chicago Board of Trade (CBOT) the previous day.
The United States Department of Agriculture (USDA) measured the quality of the country’s corn crop at 57 per cent good to excellent for the week ended July 23, the same rating as the previous week but one point below trade expectations. Out of the crop, 68 per cent was silking, three points above the five-year average, while 16 per cent was in the dough stage, two points above average.
Crop consultant Dr. Michael Cordonnier cut his yield estimate for U.S. corn by one bushel per acre to 174, with production estimated at 15.01 billion bushels.
The European Union’s MARS agricultural service cut its yield forecast for corn to 7.53 tonnes per hectare, down from 7.61 from last month but still one per cent above average.
Both the August and November SOYBEAN contracts had small losses and remained above the US$15 and US$14 per bushel marks, respectively, throughout the day.
Soybeans went down one point to 54 per cent good to excellent, according to the USDA. Seventy per cent of the crop was in the bloom stage, while 35 per cent were setting pods, with both figures four points above their averages.
Dr. Cordonnier left his yield estimate for U.S. soybeans unchanged at 50.5 bushels per acre with production set for 4.17 billion bushels despite dry weather in the forecast for many growing areas.
Chicago soft white WHEAT continued to rise, but the Kansas City hard red and Minneapolis spring wheat varieties reversed course on Tuesday after Monday’s rallies.
The U.S. winter wheat harvest is complete in Arkansas, Missouri, Oklahoma and Texas as of July 23, with the national crop 68 per cent harvested, compared to the 77 per cent average.
U.S. spring wheat was 49 per cent good to excellent, two points below the previous week, and 94 per cent headed, one point ahead of average.
The European Union cut its production forecast for soft white wheat to 5.8 tonnes per hectare, in line with the five-year average, but down from last month’s estimate of 5.92.
Kremlin spokesperson Dmitry Peskov said a letter from United Nations secretary-general Antonio Guterres to Russian President Vladimir Putin will not be enough to bring Russia back to the Black Sea Grain Initiative.
