Glacier FarmMedia MarketsFarm — The ICE Futures canola market made gains on Tuesday on a combination of support from comparable oils and short covering by the funds.
Chicago soyoil gained nearly two United States cents per pound. Meanwhile, European rapeseed was also higher and crude oil saw sharp rises on speculation Saudi Arabia is pushing for production cuts. However, Malaysian palm oil was mixed.
The Canadian dollar was up more than one-tenth of a U.S. cent compared to Monday’s close.
There were 57,127 canola contracts traded on Tuesday, which compares with Monday when 31,961 contracts changed hands. Spreading accounted for 38,018 of the contracts traded.
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The March contracts for all three major United States WHEAT varieties rose by double-digits on Tuesday. The Kansas City hard red wheat contract moved back above US$6 per bushel, while the Minneapolis spring wheat contract surpassed the US$7/bu. level.
The U.S. Department of Agriculture (USDA), in its final crop progress report of 2023, reported a two-point weekly improvement in winter wheat conditions at 50 per cent good to excellent as of Nov. 26, one point ahead of the trade’s estimate. Winter wheat emergence was at 91 per cent, four points more than the previous week and two points ahead of the five-year average.
Agritel predicted Russia will produce 90 million tonnes of wheat in 2024.
Ukraine’s ag ministry said the country has already sown 4.16 million hectares of winter wheat.
Jordan issued a tender to purchase 120,000 tonnes of wheat this morning, while a group of South Korean mills purchased 95,000 tonnes of U.S. and Canadian wheat overnight. The Taiwan Miller’s Association issued a tender to purchase nearly 110,000 tonnes of U.S. milling wheat.
January SOYBEANS had their best day on the Chicago Board of Trade (CBOT) in more than a week, briefly hitting the US$13.50/bu. level.
Crop consultant Dr. Michael Cordonnier left his 2023-24 soybean production estimates unchanged at 158 million tonnes for Brazil and 50 million for Argentina. He noted that Brazilian production could fall over time while Argentine production might become steady or higher.
The World Trade Organization has agreed to review duties imposed by the European Union on biofuel imports from Indonesia, which currently range from eight to 18 per cent. Canada will participate in the proceedings as a third party.
March CORN retreated for the fourth straight day on Tuesday, hitting a new contract low of US$4.71/bu.
The USDA reported that 96 per cent of the country’s corn crop was harvested, three points more than the previous week and one point ahead of the five-year average. The trade had previously estimated 97 per cent.
Cordonnier kept his estimates for Brazil’s and Argentina’s corn production unchanged at 121 million and 52 million tonnes, respectively, while noting that more rainfall is needed to maintain levels.
South Africa projected a six per cent yearly rise in corn production at 16.4 million tonnes in 2023.
