By Glen Hallick, MarketsFarm
WINNIPEG, April 14 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Tuesday, due to the negative tone in the commodities being generated by lower crude oil prices.
Also, lower United States wheat values put pressure on canola, as did declines in European rapeseed and Malaysian palm oil.
A trader commented that standing canola, left overwinter in Saskatchewan, is being harvested.
The Canadian dollar was slightly higher mid-afternoon Tuesday at 71.86 U.S. cents, compared to Monday’s close of 71.76.
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Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 457.20 dn 2.60
Jul 463.70 dn 2.00
Nov 470.90 dn 0.80
Jan 476.50 dn 0.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Tuesday, due to pressure from the meat packing industry.
With sharp declines in the demand for meat, especially from restaurants, several packing plants in the United States have either closed or scaled back production. That has caused uncertainty in the CBOT soy complex.
Market expectations for the March soybean crush average more than 175.0 million bushels. Projections for soyoil stocks as of March 31 average just over 2.0 million pounds.
The U.S. Department of Agriculture (USDA) will resume including soybeans in its next weekly crop progress report to be issued April 20.
AgRural said the Brazil soybean harvest reached 89 per cent complete and forecast production to reach 123.8 million tonnes. Also, the Brazil real has continued to lose ground to the U.S. dollar making its exports cheaper.
China soybean imports of almost 4.3 million tonnes were reportedly down 13 per cent from this time last year. The cause was said to be delays in shipments from Brazil.
CORN futures were lower on Tuesday, due to a lack of buying interest.
Texas-based Valero Energy announced today that it will halt ethanol production at eight of its plants and scale back production at its six other plants.
In the USDA crop progress report, three per cent of corn has been planted, which is pretty much on par for this time of year.
WHEAT futures were lower on Tuesday, also due to a lack of buying interest.
The USDA reported that five per cent of the spring wheat crop has been planted. Although that’s below the average pace of nine per cent, it’s better than the two per cent this time last year.
The department also reported six per cent of winter wheat has headed, which was slightly under the average. The crop’s condition rated 62 per cent good to excellent, which was unchanged from the previous week. The chance of more freezing temperatures in parts of Texas, Kansas and Oklahoma could damage their winter wheat.
In international wheat purchases, Egypt purchased 120,000 tonnes from Russia, and Ethiopia issued a tender for 200,000 tonnes.
