By Glen Hallick, MarketsFarm
WINNIPEG, May 26 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Tuesday having recovered most of yesterday’s losses.
Higher values for Chicago soybeans and soyoil contributed to a boost in canola, as did higher European rapeseed. However, Malaysian palm oil was lower today.
A stronger Canadian dollar kept a lid on further gains for canola. Weakness in the United States dollar saw the loonie jump more than a penny to 72.65 U.S. cents by mid-afternoon.
Manitoba Agriculture issues its next weekly crop report later today. A trader said the expectation is for Manitoba farmers to have made good seeding progress.
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There were 19,729 contracts traded on Tuesday, which compares with Monday when 6,532 contracts changed hands. Spreading accounted for 11,418 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 464.80 up 4.60
Nov 471.90 up 2.20
Jan 478.40 up 2.10
Mar 484.30 up 1.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Tuesday due to pair of private sales following Memorial Day.
The United States Department of Agriculture (USDA) reported a sale of 258,000 tonnes of soybeans to China. About 60,000 tonnes are to be delivered in the current marketing year and the remainder during 2020/21. The second sale was for 216,000 tonnes of soymeal to unknown destinations with delivery in 2019/20.
The USDA said export inspections of soybeans were more than 333,000 tonnes for the week ended May 21.
The USDA releases its weekly crop progress report at 3 p.m. Central.
Although China’s soybean imports in April were more than 6.7 million tonnes, the amount acquired from the U.S. dropped 62.0 per cent compared to those in April 2019.
Weakness in U.S. dollar made the country’s exports more competitive, especially against soybean powerhouse Brazil and its real currency.
Also, Brazil is on pace to export more than 40.0 million tonnes of soybeans for March, April and May. The current record for that period is 33.6 million tonnes.
CORN futures were higher on Tuesday, due to continued strength in crude oil prices.
The USDA reported export inspections of corn were almost 1.1 million tonnes.
China’s imports of corn in April, of nearly 887,000 tonnes, sank 88.4 per cent compared to April 2019.
Reports stated the U.S corn movement through the Gulf of Mexico was down 17 per cent at 41.6 million bushels. Corn going through the Pacific Northwest slipped 1.8 per cent at 21.9 million bushels.
WHEAT futures were mixed on Tuesday, with a loss for Chicago and gains for Kansas City and Minneapolis.
The USDA said export inspections of wheat were nearly 458,000 tonnes.
There has been market speculation that prevent planting claims will increase in 2020 in North Dakota and the northern parts of South Dakota.
China’s wheat imports for April dropped 49.1 per cent to just over 338,000 tonnes compared to April 2019.
