By Glen Hallick, MarketsFarm
WINNIPEG, May 2 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher on Tuesday, although the gains in the new crop contracts faded.
A trader said weakness in the Canadian dollar lent support to canola. At mid-afternoon on Tuesday, the loonie was at 73.41 U.S. cents, compared to Monday’s close of 73.82.
He added there was short covering in the oilseed markets, which helped to prop up canola. However, he stressed the short covering was very likely short term.
Good planting progress is expected to be made this week, with temperatures across much of the Canadian Prairies pushing above 20 degrees Celsius.
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There were 26,256 contracts traded on Tuesday, which compares with Monday when 20,379 contracts changed hands. Spreading accounted for 14,984 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Jul 709.40 up 4.80 Nov 683.40 up 0.80 Jan 689.20 up 0.90 Mar 693.70 up 0.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Tuesday, pressured by sharp losses in crude oil prices.
The United States Department of Agriculture (USDA) released its crop progress report on Monday afternoon. As of April 30, soybean planting increased by 10 points at 19 per cent finished. That’s also eight points above the five-year average.
Soybean and Corn Advisor’s Dr. Michael Cordonnier projected the 2023/24 U.S. soybean crop to reap 123.29 million tonnes. The USDA will make its first projections in its next supply and demand estimates to be released on May 12.
WHEAT futures were also weaker on Tuesday, due to rain in the forecast for the U.S. Midwest. However, a large portion of the southwest is slated to get below normal rainfall.
There was slight improvement in the U.S. winter wheat ratings, as they nudged up two points at 28 per cent good to excellent. However, the crop continued to struggle in Texas at 17 per cent good to excellent, Nebraska at 14 per cent, Kansas at 13 per cent, and Oklahoma at only nine per cent. Approximately 25 per cent of the national crop has headed out, up seven points from a week ago.
The USDA said spring wheat planted advanced by seven points at 12 per cent complete but was 10 points behind the five-year average. Two per cent of the crop has emerged.
Talks to extend the Black Sea export agreement are scheduled to begin on Wednesday. The current deal is set to expire on May 18. Over the last several weeks Russia has repeatedly claimed it will pull out of the deal if concessions to it are not made.
Ukraine recently signed agreements with five European Union countries to export its grain through their ports, the war-torn country still expects its exports to tumble in 2023/24. The country’s ag ministry said its 2022/23 exports to April came to 14.4 million tonnes, down 22 per cent from the same time the previous year.
CORN futures were lower on Tuesday, in sympathy with soybeans and wheat.
Corn planting in the U.S. nearly doubled during the past week to 26 per cent finished and six per cent has emerged. Both numbers are on or near their five-year averages.
Cordonnier pegged the 2023/24 U.S. corn crop at 381.80 million tonnes.
Ukraine said it’s 2022/23 corn exports were up 15 per cent through to April at 24.4 million tonnes.
