The ICE Futures canola market turned around on Tuesday, making gains while going along with vegetable oils.
Chicago soyoil, European rapeseed and Malaysian palm oil reversed their fortunes by moving higher. However, crude oil was lower due to a stronger United States dollar and weaker demand.
At mid-afternoon, the Canadian dollar was down one-tenth of a U.S. cent compared to Monday’s close. Statistics Canada reported today the country’s annual inflation rate dropped to 2.7 per cent in June, raising the chances of a key interest rate cut next week.
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One analyst said the direction of soybeans’ next major price movement will determine where canola prices go.
There were 41,932 canola contracts traded on Tuesday, which compares with Monday when 39,870 contracts changed hands. Spreading accounted for 18,524 of the contracts traded.
While SOYBEANS at the Chicago Board of Trade (CBOT) failed to fully recover from Monday’s losses, their gains on Tuesday were the largest since July 5.
United States soybean crop conditions were unchanged from the previous week at 68 per cent good to excellent as of July 14, according to the U.S. Department of Agriculture. Also, 51 per cent of the crop was blooming, seven points above average and 18 per cent was setting pods, six points above average.
Crop consultant Dr. Michael Cordonnier left his estimates for U.S. soybeans unchanged at an average yield of 52 bushels per acre, which would result in 4.39 billion bushels of production.
September CORN had its biggest one-day gain since June 18 for its seventh gain over the past 10 sessions. However, it couldn’t get above the US$4 per bushel mark.
U.S. corn crop conditions remained at 68 per cent good to excellent as of July 14. In total, 41 per cent of the crop was silking compared to the five-year average of 32 per cent. Eight per cent of the crop was in the dough stage, double the average.
Cordonnier raised his average yield estimate for U.S. corn by one bushel per acre at 180, bringing production to 14.85 billion bushels.
India has accelerated the planting of summer crops, including corn following an above-average monsoon rainfall. So far, 5.88 million hectares of corn have been sown, up 1.5 million from one year ago.
In the first half of July, Ukraine exported nearly 777,000 tonnes of corn. However, the corn crop in much of the country could be reduced by 20 to 30 per cent due to extremely high temperatures according to its ag ministry.
The September contracts for all three major U.S. WHEAT varieties fell to new contract lows on Tuesday, losing ground for the third-straight session.
The U.S. winter wheat crop harvest reached 71 per cent complete, up nine points from the average. Spring wheat conditions were up two points at 77 per cent good to excellent, while 76 per cent of the crop was headed, down two points from the average.
Ukraine exported more than 767,000 tonnes of wheat in the first half of July despite its crop also having to withstand high temperatures.
Asian millers have signed deals in recent weeks to import one million tonnes of wheat shipped from Bulgaria, Russia, Romania and Ukraine combined in August and September, according to reports.
