Glacier FarmMedia MarketsFarm — The ICE Futures canola market erased Monday’s gains, due to mixed vegetable oils and a stronger loonie.
Chicago soyoil and Malaysian palm oil were up, but European rapeseed was down. Crude oil was higher due to the ongoing threat of attacks on vessels in the Red Sea.
At mid-afternoon, the Canadian dollar was up more than one-third of a United States cent compared to Monday’s close, at its highest level since August. Statistics Canada reported today that the country’s annual inflation rate remained at 3.1 per cent in November.
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There were 33,537 canola contracts traded on Tuesday, which compares with Monday when 54,795 contracts changed hands. Spreading accounted for 23,562 of the contracts traded.
For the second time in five sessions in the Chicago Board of Trade (CBOT), both the January and March SOYBEAN contracts dropped by more than 10 U.S. cents per bushel. Rains in northern and central Brazil are expected to fall onto dry growing areas.
Crop consultant Dr. Michael Cordonnier cut his estimate for 2023-24 Brazilian soybean production by two million tonnes to 155 million.
Brazilian soybean exports have already eclipsed 100 million tonnes this calendar year for the first time ever, according to customs data.
Argentina plans on raising its export tax on soyoil and soymeal from 31 per cent to 33 per cent in an effort to generate more revenue after the peso is devalued.
Starting in mid-January, the Panama Canal will raise its daily Panamax allotment from 18 to 24 vessels despite ongoing drought.
For the third time in nine sessions, a day of gains was followed by two days of losses for the March CORN contract. Tuesday’s low price reached a level unseen since late November.
Cordonnier cut his production estimate for 2023-24 Brazilian corn by one million tonnes at 117 million. Other private estimates are also projecting the crop to be below 120 million, while the U.S. Department of Agriculture’s last estimate was 129 million tonnes.
Conditions remain hot in northern and central Brazil, but rains in the forecast will help its safrinha corn crop.
U.S. WHEAT futures rebounded from Monday’s losses with Kansas City hard red wheat prices recovering more than 12 U.S. cents per bushel.
Chinese wheat imports continue to run well behind the year-ago pace, with customs data for November showing 660,000 tonnes of wheat imported during the month which compares with 1.01 million tonnes in November 2022.
Egypt issued an international tender for wheat for February delivery, while Thailand tendered to purchase 197,000 tonnes of feed wheat for February to April shipment.
