WINNIPEG — The ICE Futures canola market took a tumble coming out of the Labour Day long weekend, testing the C$800 per tonne support level.
Chicago soyoil, European rapeseed and Malaysian palm oil were all lower to begin the week. However, crude oil made strong gains after Saudi Arabia and Russia announced supply cuts until the end of 2023.
At mid-afternoon, the Canadian dollar was down a quarter of a United States cent compared to Friday’s close. The Bank of Canada will announce its latest key interest rate hike decision on Wednesday.
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Temperatures were expected to be in the high-teens to early-20 degrees Celsius across the Prairies today with rainfall in Alberta and Manitoba.
About 37,567 canola contracts were traded on Tuesday, which compares with Friday when 32,661 contracts changed hands. Spreading accounted for 16,618 of the contracts traded.
The December CORN contract on the Chicago Board of Trade (CBOT) bookended the Labour Day long weekend with positive momentum. It was the first time the contract had consecutive positive sessions since Aug. 18.
The Commitment of Traders (CoT) report released Sept. 1 from the United States Commodity Futures Trading Commission said that managed money reduced corn’s net short position by 18,800 contracts to 87,348 for the week ended Aug. 29.
The U.S. Department of Agriculture (USDA) reported that 454 million bushels of U.S. corn were crushed for ethanol in July, up 11.9 million from June and up 8.3 million from one year earlier.
Brazil’s first corn crop is now 13 per cent planted compared to nine per cent last year, while 88 per cent of the safrinha corn crop is harvested, down from 98 per cent last year.
Crop consultant Dr. Michael Cordonnier of Soybean and Corn Advisor Inc. left his U.S. corn yield estimate unchanged at 173 bushels per acre for 15.01 billion bushels in production.
SOYBEANS lost ground for the fourth time in the past five sessions with the November contract dropping to its lowest price since Aug. 24.
The funds added 32,000 contracts to soybeans’ net long position at 91,000 according to the CoT report. For soymeal, 20,000 contracts were added for a net long of 73,000 and soyoil was 58,300 net long.
The USDA said 184.8 million bushels of soybeans were crushed in July, a record for the month. Also, soyoil stocks were at 2.149 billion pounds.
Dr. Cordonnier left his U.S. soybean estimates unchanged at 50 bushels per acre and 4.13 billion bushels. He also estimated that Brazil will plant 112.3 million acres with 162 million tonnes production, while Argentina will plant 41.2 million acres with 50 million tonnes production, all gains in acreage compared to last year.
All three major U.S. WHEAT varieties were up on Tuesday, but no higher than five U.S. cents per bushel.
The net short position for Chicago wheat was extended to 79,900 contracts for a 10-week high. Kansas City hard red wheat had its net short position reduced to 5,600 contracts. For Minneapolis spring wheat, its net short grew by 2,500 contracts to 8,760.
ABARES estimated Australia’s 2023-24 wheat crop at 25.4 million tonnes, down 800,000 from the previous estimate and down 36 per cent from last year.
Turkish President Recep Tayyip Erdogan will meet with United Nations Secretary General Antonio Guterres this month to discuss reviving the Black Sea Grain Initiative.
