By Glen Hallick, MarketsFarm
WINNIPEG, June 13 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) fell back further on Monday, adding to the sharp losses incurred late last week. A major sell-off in the stock and equities markets fueled the declines.
Additional pressure came from downturns in the Chicago soy complex and European rapeseed. There were slight gains in Malaysian palm as well as global crude oil prices.
Rain over the Prairies for the next few days will put a crimp on any remaining spring planting. Especially on the eastern half of the region where wet conditions have slowed progress this year.
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The Canadian dollar was lower at mid-afternoon, with the loonie dropping to 77.71 U.S. cents, compared to Friday’s close of 78.27.
There were 14,637 contracts traded on Monday, which compares with Friday when 22,003 contracts changed hands. Spreading accounted for 6,110 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 1,087.20 dn 16.90
Nov 1,028.60 dn 15.60
Jan 1,034.10 dn 16.40
Mar 1,035.70 dn 15.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday, due to major sell-off in stocks and equities.
The United States Department of Agriculture issued its weekly export inspections report, showing outbound movements of soybeans were 605,129 tonnes, for a jump of 65.6 per cent from the previous week. Year-to-date export inspections reached 50.47 million tonnes and are 11.5 per cent behind those from this time last year.
Trade guesses placed U.S. soybean planting upwards to 89 per cent finished, which would be ahead of the five-year average.
Indonesia announced it approved export permits of 1.16 million tonnes of palm oil products up to the end of July.
CORN futures were lower on Monday, taking some spillover pressure from soybeans.
Corn export inspections were just short of 1.2 million tonnes, down 17.7 per cent from a week ago. The year-to-date tallied 44.96 million tonnes and 17.1 per cent below those a year ago.
The seeding of U.S. corn is thought to be virtually complete.
The weather outlook for the U.S. Corn Belt is pointing to two weeks of hot and dry weather.
WHEAT futures were narrowly mixed on Monday, with small gains in Chicago and Minneapolis, while Kansas City nudged a little lower.
Overseas shipments of wheat amounted to 388,847 tonnes and 9.4 per cent more than those last week. With the new crop year for U.S. wheat having started on June 1, total inspections were 615,556 tonnes, down 11.4 per cent from the same time last year.
Hot and dry conditions continued to severely impacting crops in western European, especially in the region’s southwest.
As the war rages on in Ukraine it has become very unlikely that a corridor to export grain out of the country will happen.
In international purchases, Iraq said it will buy 1.5 million tonnes of wheat from Australia and the U.S.
A report said Indonesia, Oman, the United Arab Emirates, Bangladesh and Yemen were seeking to acquire wheat from India. This would be despite the latter’s apparent ban on such exports.
Egypt said its domestic purchases of wheat hit 3.9 million tonnes so far, which is up 8.3 per cent from a year ago.
