By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 25 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Tuesday, as canola yields across the Prairies are expected to be lower than initially projected.
A trader said the prolonged heat wave aided the quick development of canola pods, which are thought to contain fewer seeds. On Aug. 31 Statistics Canada will release its latest insight to this year’s major crops.
From the federal agency today came its monthly crush report. The amount of canola crushed in July was 806,868 tonnes, down 6.7 per cent from June. The July soybean crush came in at 125,875 tonnes and was up 3.4 per cent from June.
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Statistics Canada also released its deliveries of major grains, with a total of 5.81 million tonnes delivered. Of that, 2.12 million tonnes was canola and 3.14 million tonnes was wheat.
The Canadian dollar was slightly higher at 75.85 U.S. cents, compared Monday’s close of 75.72.
There were 25,011 contracts traded on Tuesday, which compares with Monday when 28,715 contracts changed hands. Spreading accounted for 18,548 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 491.00 up 1.70
Jan 498.90 up 1.30
Mar 505.00 up 1.50
May 510.30 up 1.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Tuesday, due to declines in the weekly crop progress report.
The United States Department of Agriculture (USDA) said soybean conditions were 69 per cent good to excellent for the week ending Aug. 23, for a drop of three points from the previous week. Soybeans setting pods was at 92 per cent, up eight points. Soybeans dropping leaves were cited for the first time in 2020 and were at four per cent.
Top trade representatives from the U.S and China participated in the phone this morning, reaffirming each country’s commitment to the Phase One trade deal. Trade talks were scheduled for Aug. 15, but were cancelled due to ongoing tensions between the two economic superpowers.
The USDA reported two private sales of soybeans, one for 204,000 tonnes to China and the other for 142,500 tonnes for unknown destinations. Delivery for both is to be during the 2020/21 marketing year.
CONAB estimated the Brazil soybean crop to be 133.5 million tonnes in 2020/21 on additional acres.
Malaysian palm oil exports were down during the period Aug. 1 to 25 compared to July 1-25. In August, 1.22 million tonnes was exported versus 1.42 million tonnes in July.
CORN futures were higher on Tuesday, follow a decline in crop conditions.
The USDA said corn fell from 69 to 64 per cent good to excellent as the damaging effects of the recent derecho wind storm have been accounted for. In Iowa corn rated only 50 per cent good to excellent, falling nine points. However in neighbouring Minnesota, conditions were far better at 82 per cent. Corn dough was at 88 per cent, up 12 points from the previous week. Corn dented increased from 23 to 44 per cent, and corn mature was at five per cent.
There were two private sales of corn reported by the USDA today, with 408,000 tonnes to China and 100,000 tonnes to Japan. Delivery for both is to be during the 2020/21 marketing year.
CONAB projected the Brazil 2020/21 corn crop to be 112.9 million tonnes, almost 12 per cent more than in 2019/20 due to more acres being planted.
WHEAT futures were higher on Tuesday, as the U.S. Dollar Index slipped today from 93.289 points to 93.020.
The U.S. winter wheat harvest reached 97 per cent complete, up four points from the previous week. The spring wheat harvest was at 49 per cent, gaining 19 points on the week. The condition of spring wheat improved by one point, to 71 per cent good to excellent.
Coceral estimated the European Union wheat crop to reach 129.1 million tonnes in 2020. That’s down from the firm’s previous forecast of 129.7 million tonnes.
Kazakhstan projected its 2020 wheat crop to reach 18.0 million tonnes, with up to 8.0 million tonnes available for export.
