WINNIPEG — The ICE Futures canola market was lower after a back-and-forth session on Monday despite high temperatures and dry conditions on the Prairies.
Chicago soyoil was down, while European rapeseed and Malaysian palm oil were both on the rise. Crude oil was up US$1 per barrel after Saudi Arabia announced it will cut production by one million barrels per day starting in July.
At mid-afternoon, the Canadian dollar was steady compared to Friday’s close.
About 26,474 canola contracts were traded on Friday, which compares with Friday when 28,455 contracts changed hands. Spreading accounted for 14,050 of the contracts traded.
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CORN suffered its biggest one-day loss in nearly three weeks despite dryness in much of the U.S. Corn Belt.
The U.S. Commodity Futures Trading Commission’s (CFTC) Commitment of Traders report showed that corn lost 52 per cent of its net short position during the week ended May 30, but was still net short 46,800 contracts.
Traders estimated the U.S. Department of Agriculture’s (USDA) corn crop rating to slightly decline this week to 66 to 68 per cent good to excellent, the lowest rating in 10 years. However, light rains are expected for much of the U.S. Corn Belt in the coming week.
The USDA’s Weekly Export Inspections report said that 1.181 million tonnes of U.S. corn were shipped during the week ended June 1, down 165,000 from last week and down 278,000 from the week last year. China was the top destination.
Albeit a small loss, SOYBEANS ended the day lower for the first time in four sessions.
The Commitment of Traders report had soybeans at a net long of 2,200 futures contracts as of May 30, compared to 710 the previous week.
The USDA will release its first crop rating for soybeans today, which is expected to be 70 per cent good to excellent. Planting progress is also expected to surpass 90 per cent this week.
Only 214,000 tonnes of soybeans were shipped for export for the week ended June 1, down 28,800 from last week and down nearly 156,000 from the same week last year.
Minneapolis spring WHEAT was up for the third straight session, while Chicago wheat and Kansas City hard red wheat extended their respective rallies to a fourth day.
The Commitment of Traders report showed a net short position of 127,000 contracts for Chicago wheat, a net long of 8,800 contracts for Kansas City wheat and a net short of Minneapolis spring wheat of 7,700 contracts.
The USDA reported that more than 291,000 tonnes of U.S. wheat were exported for the week ended June 1, 100,000 less than the previous week and 63,000 lower than the same week last year.
Ukraine’s ag minister said on Friday the country has a plan B to continue grain exports if Russia pulls out of the Black Sea Grain Initiative. Russia is currently holding up grain inspections, while Ukraine fears that poor weather could cut winter grain production by 20 per cent.
