WINNIPEG – The ICE Futures canola market was slightly lower on Tuesday despite a major downturn in the Chicago soy complex and vegetable oils.
Chicago soyoil lost more than two United States cents per pound, while Malaysian palm oil and European rapeseed were lower. Crude oil showed some slight weakness as Chinese economic concerns were offset by the U.S.’s plan to replenish its strategic petroleum reserves.
At mid-afternoon, the Canadian dollar was up less than one-tenth of a U.S. cent compared to Monday’s close. Statistics Canada reported earlier today that the country’s annual inflation rate increased slightly to 4.4 per cent in April.
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About 29,810 canola contracts were traded on Tuesday, which compares with Monday when 28,971 contracts changed hands. Spreading accounted for 18,016 of the contracts traded.
CORN prices erased the previous day’s gains after falling by double digits on the Chicago Board of Trade (CBOT) on Tuesday.
The United States Department of Agriculture (USDA) reported yesterday that 65 per cent of the country’s new corn crop was planted as of May 14, 16 points more than last week and six points ahead of the five-year average. However, six states are trailing their average pace, including North Dakota with only six per cent planted. Thirty per cent of the new corn crop has emerged compared to the 25 per cent average.
Crop consultant Dr. Michael Cordonnier raised his estimate for Brazilian corn production for 2022-23 by one million tonnes to 125 million, while his estimate for Argentina remained unchanged at 35 million.
The Ukrainian Grain Association said that new crop corn production could decline by 23 per cent from last year to 21.1 million tonnes.
SOYBEANS had its worst day on the CBOT since Dec. 1 while soyoil fell tumbled by more than two U.S. cents per pound.
Good weather allowed soybean planting progress to advance by 14 points to 49 per cent complete as of May 14, according to the USDA. The figure is 13 points ahead of the five-year average, but below the trade’s estimate of 51 per cent. Twenty per cent of the new U.S. soybean crop has already emerged, nine points ahead of the five-year average.
Dr. Michael Cordonnier raised his old crop Brazilian soybean production estimate by one million tonnes to 155 million, while his Argentine estimate stayed at 23 million.
Chicago WHEAT fell more than 10 U.S. cents per bushel, but Kansas City hard red winter wheat only slightly declined and Minneapolis spring wheat had a small gain.
Spring wheat planting in the U.S. advanced 16 points to 40 per cent as of May 14, according to the USDA. However, the figure is still 17 points back of the five-year average. Spring wheat emergence was at 13 per cent, 10 points behind the average, while winter wheat was 49 per cent headed, one point higher than the average.
The U.S. Wheat Quality Council tour began in Kansas earlier today and preliminary results will be available this evening.
Colorado, Kansas, Oklahoma and the Texas Panhandle could see 50 to 100 mm of rain in the coming week.
There are no plans to resume talks over the extension of the Black Sea Grain Initiative which is set to expire on May 18. Meanwhile, the Ukrainian Grain Association said new crop wheat production may drop 16 per cent to 17 million tonnes.
