WINNIPEG – The ICE Futures canola market was down by double digits on Tuesday before making up some ground by the end of trading. The northern and eastern Prairies are expecting some rain over the next five days, but dryness is in the forecast for the Canada Day weekend.
Chicago soyoil finished higher, while European rapeseed and Malaysian palm oil were both in the red. Crude oil lost more than US$1 per barrel.
At mid-afternoon, the Canadian dollar was down nearly two-tenths of a United States cent compared to Monday’s close.
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StatCan reported earlier today that the country’s inflation rate dropped to 3.4 per cent in May, its lowest level since June 2021. The central data agency will also release its latest principal field crop acreage estimates on Wednesday.
About 34,852 canola contracts were traded on Tuesday, which compares with Monday when 28,355 contracts changed hands. Spreading accounted for 14,932 of the contracts traded.
CORN fell for the fourth straight day on Tuesday at the Chicago Board of Trade (CBOT) as growing areas expect rain in the coming days.
The United States Department of Agriculture (USDA) rated the nation’s corn crop at 50 per cent good to excellent on Monday, down five points from the previous week, with four per cent of the crop silking. Illinois was down 10 points to 26 per cent good to excellent, while Indiana was nine points lower to 56 per cent. Both states are expecting rain in the seven to 10 day weather forecasts.
Crop consultant Dr. Michael Cordonnier cut his U.S. average corn yield forecast by two bushels per acre to 175, with a reduced production estimate of 14.61 billion bushels.
The USDA’s attache in China estimated the country’s hybrid seed corn production at 1.36 million tonnes for 2022-23, up 31 per cent from the year before.
SOYBEANS erased their gains from Monday, losing between 26 and 29 U.S. cents per bushel on Tuesday.
The USDA rated the soybean crop at 51 per cent good to excellent, down three points from last week. Illinois, Indiana and Iowa all saw declines ranging from eight to 10 points. The crop is 96 per cent emerged and 10 per cent blooming, which are seven and one point ahead of their respective averages.
Cordonnier cut his average yield estimate for U.S. soybeans by half a bushel to 50.5 with production at 4.39 billion bushels.
Iran issued a tender for 120,000 tonnes of soybeans from South America.
Chicago soft WHEAT fell below the US$7 per bushel mark, while other U.S. wheat varieties also took major losses.
U.S. spring wheat conditions declined by one point to 50 per cent good to excellent, with 31 per cent headed as of June 25, 21 points up from last week.
Winter wheat conditions in the U.S. were up two points to 40 per cent good to excellent with 24 per cent of the harvest completed, up nine points from last week. The Kansas Wheat Commission placed yields at 10 to 70/bu./ac. with the average in the 30s.
Russia’s wheat crop is projected to drop 17 per cent to 86.7 million tonnes, while Ukraine may only produce 17.5 million, half as much as its record crop two years ago.
