WINNIPEG — The ICE Futures canola market rallied on Tuesday, making gains in the double-digits with funds putting money back into the long side of the market.
While Chicago soyoil was fractionally lower, European rapeseed and Malaysian palm oil were both higher. Crude oil was slightly higher, as OPEC+ plans to meet on the weekend to discuss possible production cuts.
At mid-afternoon, the Canadian dollar brought additional support to canola prices by losing eight-tenths of a United States cent from Monday’s close.
About 38,840 canola contracts were traded on Tuesday, which compares with Monday when 51,150 contracts changed hands. Spreading accounted for 29,612 of the contracts traded.
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CORN ended Tuesday slightly lower than the previous day’s close.
Pre-report estimates from Statistics Canada’s (StatCan) principal field crop production report, which will be released on Friday, put Canadian corn production between 14.3 and 15.1 million tonnes.
The United States is planning on taking legal action against Mexico for the latter’s decision to ban genetically modified corn imports by 2024, which the U.S. claims is in violation of the U.S.-Mexico-Canada Trade Agreement (USMCA).
The USDA is estimating Brazil’s corn crop at 126 million tonnes and exports near 47 million.
SOYBEANS made small gains on Tuesday after rising by double-digits the day before.
On Monday, the Argentine government enacted a new soybean exchange rate, which will run until Dec. 31, in an effort to boost export sales. Both Brazil and Argentina have struggled with dry conditions in soybean-growing areas.
The agricultural firm AgRural has projected Brazil’s 2022-23 crop at 150.5 million tonnes.
Minneapolis spring and Kansas City hard red WHEAT varieties were lower at Monday’s close, while Chicago wheat was just above unchanged.
Analysts are expecting Canadian wheat production to be 34.8 million tonnes for StatCan’s crop production report, 100,000 tonnes more than the previous estimate. However, spring wheat production is expected to decrease by 200,000 tonnes to 25.9 million.
While the USDA has delayed its winter wheat conditions report until later today, analysts expected a one-point increase to 33 per cent good to excellent.
