WINNIPEG – The ICE Futures canola market rallied early Tuesday morning, but dropped to close on the negative side of unchanged.
Dry and sunny weather was forecast for the Prairies on Tuesday, accompanied by above-average high temperatures in the low-20 degrees Celsius range. The conditions favoured harvesting operations, but throughout the month of September, large parts of Saskatchewan and Alberta received less than 40 per cent of normal precipitation.
Early harvest reports from canola growers on the Prairies suggested that there have been lower-than-expected yields compared to what had been previously forecast.
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With the exception of soy meal, the Chicago soy complex was higher on Tuesday, as well as European rapeseed and Malaysian palm oil.
Meanwhile, the Canadian dollar benefitted from recent weakness in the U.S. greenback by moving upwards six-tenths a U.S. cent and putting pressure on canola prices.
About 50,767 canola contracts were traded on Tuesday, which compares with Monday when 47,045 contracts changed hands. Spreading accounted for 45,020 of the contracts traded.
SOYBEAN futures on the Chicago Board of Trade continued to rally on Tuesday after prices rose on Monday.
The United States Department of Agriculture’s (USDA) weekly crop progress report had 81 per cent of soybeans dropping leaves compared to 63 per cent in the previous week and 79 per cent on average. The U.S. soybean harvest has reached 22 per cent, compared to 25 per cent on average and the good-to-excellent rating remained at 55 per cent.
Meanwhile, Brazil reported September soybean exports at nearly 4.3 million tonnes, a 500,000 tonne drop from last year.
CORN also finished the day higher for the second straight session.
The USDA weekly crop progress report on Monday showed that the U.S. corn harvest was at 20 per cent compared to the 22 per cent five-year average, while the crop rating was at 52 per cent good to excellent, unchanged from the previous week.
Meanwhile, 75 per cent of the U.S. corn crop has reached maturity. The USDA also reported that August corn use for ethanol production was in line with expectations at more than 432 million bushels.
WHEAT was unchanged to lower to end Tuesday.
The USDA reported that 80 to 92 per cent of topsoil and subsoil from South Dakota to Oklahoma was considered short or very short of moisture.
U.S. winter wheat was 40 per cent planted compared to 31 per cent last week and the 44 per cent average. Emergence was at 15 per cent, six points higher than one week earlier.
