By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 27 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures continued higher on Tuesday, but a sudden about-face in the Chicago soy complex erased some of the Canadian oilseed’s strength.
While Malaysian palm oil was relatively neutral, support for canola came from a sharp turnaround in European rapeseed. Increases in global crude oil prices lent additional support to vegetable oils.
A trader noted that crushers are locking in some futures just as speculators booked profits.
Above normal daytime temperatures are helping the progress of the Prairie harvest, as it contends with short daylight hours.
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After earlier declines, the Canadian dollar was virtually unchanged at mid-afternoon, compared to Monday’s close 72.91.
There were 26,521 contracts traded on Tuesday, which compares with Monday when 35,192 contracts changed hands. Spreading accounted for 16,480 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 829.10 up 3.10
Jan 838.40 up 3.30
Mar 845.60 up 4.00
May 847.50 up 3.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) turned on Tuesday after making modest gains for most of the session.
The United States Department of Agriculture (USDA) issued its crop progress report on Monday afternoon and soybeans came in at 54 per cent good to excellent as of Sept. 25, holding from last week. Soybeans harvested was eight per cent complete, up five points on the week, but five behind the average pace.
The USDA is scheduled to release its quarterly stocks and small grains reports on Friday. Market expectations called for soybean stocks of 215 million to 275 million bushels as of Sept. 1. That’s down from the 257 million bushels a year ago.
Hurricane Ian is forecast to drop a great deal of rain over the southeastern U.S. in the coming days. Apart from some rain over Wyoming and Montana, the rest of continental U.S. is expected to remain dry.
The planting of soybeans in Brazil is underway as Safras and Mercado pegged it at two per cent complete, while AgRural placed it at 1.5 per cent. The average pace is 0.8 per cent done.
CORN futures were slightly higher on Tuesday, as soybeans pulled them away from larger gains.
The USDA said corn was 52 per cent good to excellent, also holding from the previous week. The corn harvest advanced five points at 12 per cent finished, which is near the average.
Quarterly stocks of corn are projected to be 1.5 billion bushels, higher than last September’s 1.24 billion.
WHEAT futures were stronger on Tuesday, making double-digit gains off of high global tensions.
The U.S. spring wheat harvest was almost complete at 96 per cent done, gaining only two points on the week, but virtually on par with the average pace. Winter wheat planted rose 10 points at 31 per cent complete, also near the average.
Wheat stocks as of Sept. 1 have been forecast at 1.66 billion to 1.95 billion bushels, compared to the 1.77 billion a year ago.
While the USDA’s projection for the Russian wheat harvest is 91 million tonnes, the European Union has estimated a record output of 95 million tonnes.
Winter wheat planting in Ukraine was reported to be 16 per cent complete.
A report noted that 231 vessels carrying 5.3 million tonnes of grain have departed Ukrainian ports so far under the agreement with Russia.
