By Glen Hallick, MarketsFarm
WINNIPEG, May 2 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were down sharply on Monday, due to significant losses in European rapeseed and in the Chicago soy complex. Profit-taking was also a contributing factor in today’s losses.
Meanwhile, the Malaysian palm oil market was closed for a holiday.
Global crude oil prices overcame sharp declines to be slightly higher. Those increases gave a small measure of support to edible oils.
Spring planting continued on the western Prairies, while seeding on the eastern half might not get started until mid-month. There’s flooding in several areas of southern Manitoba, especially in the Red River Valley.
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The Canadian dollar fell back in the face of a stronger United States dollar. At mid-afternoon, the loonie dropped to 77.45 U.S. cents, compared to Friday’s close of 78.17.
There were 27,032 contracts traded on Monday, which compares with Friday when 14,958 contracts changed hands. Spreading accounted for 10,356 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 1,143.80 dn 44.30
Nov 1,064.00 dn 40.30
Jan 1,067.50 dn 39.50
Mar 1,065.40 dn 39.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday, due to notions of increased soybean acres in the United States this year.
Ahead of this week’s fats and oils report from the U.S. Department of Agriculture, the trade pegged the March soybean crush at more than 193 million bushels. The crush in March 2021 was 188.2 million bushels.
The USDA issued its export inspections report and for the week ended April 28 outbound movement of soybeans came to 601,282 tonnes, down slightly from the previous report. The year-to-date was almost 47.21 million, 15.2 per cent behind export inspections a year ago.
The department will issue its crop progress report at 3 pm CDT. U.S. soybean planting is expected to be eight to nine per cent finished.
The soybean harvest in Argentina is reported to be 46 per cent done, with the crop at 16 per cent good to excellent.
Several markets in Asia, including those in China and Malaysia are closed for a holiday.
CORN futures were lower on Monday, in sympathy with soybeans and winter wheat.
The USDA said corn export inspections of more than 1.68 million tonnes were largely steady compared to last week. The year-to-date reached 36.58 million tonnes, 16.1 per cent short of this time last year.
U.S. corn planting is expected to be 17 to 22 per cent done. Rain delays on the Corn Belt could see upwards of one million acres not being planted with corn and yields slipping below 180 bushels per acre.
The European Union trimmed its corn crop for 2022/23 by 0.8 per cent at 73.4 million tonnes.
Argentina said its corn harvest was 25 per cent finished and the crop was 19 per cent good to excellent.
WHEAT futures were mixed on Monday, with a slight gain for Minneapolis, a small loss for Chicago, while Kansas City pulled back moderately.
Weekend rains across the U.S. Southern Plains helped with ongoing dry conditions, with more precipitation for the region this week.
Winter wheat conditions are expected to hold from last week and spring wheat is estimated to be 15 to 20 per cent complete.
The USDA said wheat export inspections for the week were up almost 33 per cent at 384,460 tonnes. The year-to-date was at 18.76 million tonnes, 19.1 per cent behind those this time last year.
As the war in Ukraine raged on, Russia is said to be preparing for a large offensive in the east. Russian missiles are being used to destroy key infrastructure in several areas of Ukraine.
A heatwave in India is expected to see the country’s wheat crop come up short of the projected 110 million tonnes.
