By Glen Hallick, MarketsFarm
WINNIPEG, July 25 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) closed lower on Monday as the Prairies benefit from good summer weather.
As daytime temperatures climb during the week from the low 20 degrees Celsius to the low 30’s, rain will also make its way across the region. Good crop conditions so far have been pushing canola values lower.
Weakness in Chicago soyoil and European rapeseed also weighed on values. Meanwhile those losses were tempered by sharp gains in Chicago soybeans and soymeal, as well as increases in the off session of Malaysian palm oil. Moderate upticks in global crude oil prices lent support to vegetable oils.
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The Canadian dollar was higher at mid-afternoon, with the loonie rising to 77.84 U.S. cents, compared to Friday’s close 77.66.
There were 17,604 contracts traded on Monday, which compares with Friday when 17,191 contracts changed hands. Spreading accounted for 6,570 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 795.10 dn 7.30
Jan 803.40 dn 7.20
Mar 811.40 dn 6.90
May 818.30 dn 5.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Monday, due to the prospect of steady crop conditions.
The United States Department of Agriculture (USDA) is scheduled to release its weekly crop progress report later this afternoon. Soybean conditions are projected to edge up one point due to rain over the U.S. Midwest and Great Lakes regions.
The USDA reported export inspections for the week ended July 21 included 388,212 tonnes of soybeans. That’s down 11.1 per cent from the previous week. The year-to-date export inspections reached 53,000,942 tonnes, which are 5.17 million tonnes below those this time last year.
Safras and Mercado projected the 2022/23 Brazil soybean crop to come in at 154.5 million tonnes. The consultancy pegged exports for the coming year at 91.5 million.
CORN futures were stronger as well on Monday, getting spillover support from wheat and the prospect of hot temperatures impacting crops.
Daytime temperatures on the U.S. Southern Plains, as well as Nebraska, Missouri and the Western Delta are forecast to reach 100 degrees Fahrenheit over the next two weeks.
The trade expects U.S. corn conditions to decline by approximately one point.
The USDA said corn export inspections dropped 32.6 per cent at 724,214 tonnes. The year-to-date reached 51.03 million tonnes, about 10.6 million behind those a year ago.
The Buenos Aires Grain Exchange (BAGE) estimated the Argentine corn harvest to be about two-thirds complete.
Dry conditions continued to be a major problem across most of the European Union.
WHEAT futures were higher on Monday due to market concerns over Russian missile strikes on the Ukrainian port of Odessa.
Russian forces launched cruise missiles at Odessa on July 23, reportedly striking a Ukrainian warship and a stockpile of anti-ship missiles. The attack came less than 24 hours after the two sides signed an agreement to allow Ukraine to export its 25 million tonnes of grain holed up in ports. Despite Russia’s flagrant violation of the new agreement, Ukraine remained optimistic that grain exports out of a nearby port could begin this week.
The USDA said wheat export inspections vaulted 148.5 per cent at 475,426 tonnes. The year-to-date came to 2.59 million tonnes, more than 796,000 tonnes back from inspections a year ago.
The trade projected a one-point dip in U.S. wheat conditions.
The Wheat Quality Council tour is set to begin on Tuesday in North Dakota.
The BAGE reported wheat planting in Argentina to be 97 per cent finished, based on 6.1 million hectares to be seeded.
