Glacier FarmMedia MarketsFarm — The ICE Futures canola market came out of the Canada Day weekend with a huge boost from vegetable oils.
August soyoil in Chicago was up, while European rapeseed and Malaysian palm oil also rose sharply. Crude oil was slightly higher due to tensions in the Middle East and the start of hurricane season in the Atlantic.
One analyst said Indonesia threatening tariffs on Chinese good made palm oil prices rise to two-month highs. There was also talk Europe recently made purchases of Canadian canola.
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Glacier FarmMedia – Canola futures on the Intercontinental Exchange were slightly higher on Friday in choppy trade. Chicago soyoil and Malaysian…
At mid-afternoon, the Canadian dollar was steady compared to Friday’s close.
There were 66,536 canola contracts traded on Tuesday, which compares with Friday when 29,390 contracts changed hands. Spreading accounted for 19,024 of the contracts traded.
All three major United States WHEAT varieties saw small corrective declines on Tuesday after making gains on Monday.
Nearly 310,000 tonnes of new crop U.S. wheat were shipped for export during the week ended June 27, according to the U.S. Department of Agriculture (USDA), down 10 per cent from last week. Cumulative exports one month into the new crop year were 24 per cent above last year’s pace, totalling at 1.36 million tonnes.
U.S. spring wheat conditions improved one point at 72 per cent good to excellent with 38 per cent of the crop headed.
U.S. winter wheat declined one point at 51 per cent good to excellent with the harvest 54 per cent complete.
CORN ended an eight-day slide on Tuesday, but gains made were miniscule. For the second straight day, the September contract remained above US$4 per bushel.
Nearly 820,000 tonnes of U.S. corn were shipped for export last week. Cumulative shipments this marketing year so far total 42.48 million tonnes, up 28 per cent from last year.
The U.S. used 453.7 million bushels of corn for ethanol in May, up 7.4 per cent from April and up 3.34 per cent from one year ago.
U.S. corn crop conditions declined two points at 67 per cent good to excellent, while 11 per cent of the crop was silking, nearly double the five-year average.
The safrinha corn harvest in Brazil’s south-central region was 49 per cent complete according to AgRural, compared to 16 per cent last year.
StoneX projected Brazil’s overall crop at 121.18 million tonnes, down 570,000 from its previous estimate.
Crop consultant Dr. Michael Cordonnier cut his U.S. corn production estimate to 14.77 billion bushels, citing fewer harvested acres. He left South American estimates unchanged at 114 million tonnes for Brazil and 47 million for Argentina.
The August SOYBEAN contract was lifted by soyoil and increased for the second straight day on Tuesday, hitting a weekly high of US$11.6175/bu.
More than 303,000 tonnes of U.S. soybeans were shipped for export last week, 13.4 per cent less than the week before. Year to date exports total 41.54 million tonnes, 16 per cent lower than one year ago.
Nearly 192 million bushels of soybeans were crushed in May according to the USDA’s Fats and Oils report, nearly two million below the trade estimate. Soyoil stocks were 2.187 billion pounds, also below trade expectations.
U.S. soybean conditions were unchanged at 67 per cent good to excellent with 95 per cent of the crop emerged and 20 per cent blooming.
Cordonnier reduced his production estimate for U.S. soybeans to 4.39 billion bushels while leaving Brazil and Argentina unchanged at 147 million tonnes and 50 million tonnes respectively.
