By Glen Hallick, MarketsFarm
WINNIPEG, July 5 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were weaker on Monday, finishing a little short of their daily limit.
A trader stated today’s declines had more to do with an opportunity for profit-taking, as the United States markets are closed. Those markets will resume trading Tuesday morning at 8:30 CDT.
The weather nevertheless had some role in canola prices, as cooler temperatures and the prospect of rain brought additional pressure on values.
That said, the trader cautioned if there isn’t sufficient precipitation coming soon, Prairie growers will be faced with reduced canola yields. He estimated this summer’s canola crop could be 18 million tonnes, well under official estimates. If those rains do arrive in time, then production could reach 21 million tonnes.
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The Canadian dollar was slightly higher at mid-afternoon, with the loonie at 81.07 U.S. cents, compared to Friday’s close of 80.95.
There were 10,343 contracts traded on Monday, which compares with Friday when 20,818 contracts changed hands. Spreading accounted for 2,758 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 801.40 dn 29.50
Jan 798.10 dn 27.10
Mar 790.10 dn 25.20
May 778.90 dn 24.40
Trading at the Chicago Board of Trade (CBOT) and other United States markets was closed on Monday to mark Independence Day. On Tuesday morning, there will be a pre-opening at 6:00 CDT, followed by the markets resuming trade at 8:30.
At Friday’s close the markets were mixed with declines in corn and winter wheats, while spring wheat and soybeans made small gains.
The U.S. Department of Agriculture has postponed its weekly reports on export inspections and crop progress to Tuesday.
The USDA reported last week that U.S. soybean exports in the first quarter of calendar year 2021 hit US$7.7 billion. That’s nearly double the amount from this time last year.
Also, the department has estimated China’s corn imports for the current marketing year should reach 1.1 billion bushels. If China follows through with its plans to increase domestic corn production, its reliance on foreign imports could drop to 787 million bushels.
The Buenos Aires Grain Exchange said Argentina is on pace for a corn harvest of 48 million tonnes, with combining at about halfway. The exchange noted yields are higher than expectations.
Ukraine reported this year’s corn production should jump by 22 per cent over last year at about 1.46 billion bushels. The country’s wheat production is to expand 14.5 per cent at 1.05 billion bushels.
France said the condition of its soft wheat crop was 79 per cent good to excellent, the same it was the previous week. France is the European Union’s largest wheat grower.
