By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 24 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Monday, benefitting from gains in Chicago soyoil and a decline in the Canadian dollar.
Chicago soyoil was up by a quarter of a cent today in the nearby September contract. Canola also received some support from small increases in European rapeseed. However, losses in Malaysian palm oil tempered today’s increases.
After the Canadian dollar nearly reached 76.00 U.S. cents this morning, by mid-afternoon the loonie fell to 75.55. On Friday, the dollar closed at 75.73 U.S cents.
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A Winnipeg-based trader said weather conditions are not having too much of an effect on canola prices, as more of the crop is being swathed. He noted the “mixed solitudes” of a very wet northern Alberta and dry conditions across most of the rest of the Prairies.
There have been reports of small amounts of canola being harvested in southern parts of Manitoba and Saskatchewan.
There were 28,715 contracts traded on Monday, which compares with Friday when 26,475 contracts changed hands. Spreading accounted for 19,266 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 489.30 up 3.00
Jan 497.60 up 3.30
Mar 500.50 up 3.60
May 509.20 up 4.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly higher on Monday, due to a strong export inspections report.
In the United States Department of Agriculture (USDA) weekly export inspections report, 1.15 million tonnes of soybeans were shipped as of Aug. 20. That’s a 24.5 per cent jump from the previous week. China was the top destination with 689,557 tonnes.
The USDA releases its weekly crop progress report this afternoon. Market expectations are for soybean conditions to slip by two points to 70 per cent good to excellent.
The Pro Farmer Crop Tour pegs U.S. soybean production in 2020 to be about 118.66 million tonnes. That’s under the USDA’s most recent estimate of 120.56 million tonnes.
CORN futures were higher on Monday, as dry weather continued across the U.S. Corn Belt.
Dry conditions remain across most of the major growing areas in the U.S. as little, if any, rain fell during the weekend. However, rain was forecast today for the northern and eastern sections of the Corn Belt.
Corn export inspections were 892,038 tonnes for the week ended Aug. 20. That’s a drop of 23.6 per cent from the previous week. Mexico was the top destination with 240,085 tonnes.
The Pro Farmer Crop Tour projected U.S. corn production in 2020 to reach 403.33 million tonnes. That’s under the USDA’s estimate of 415.85 million tonnes.
The derecho wind storm that battered Iowa earlier this month is now thought to have destroyed 5.72 million to 10.41 million tonnes of corn, according to a report. The estimate was based on the damage in 22 Iowa counties.
WHEAT futures were weaker on Monday, due to increasing harvest pressure.
The markets also expect the U.S. spring wheat harvest to be around the halfway point. The winter wheat harvest is expected to be almost finished. Trade expectations for U.S. spring wheat conditions are to hold at 70 per cent good to excellent.
The USDA export inspections put wheat exports at 569,593 tonnes, about 75,000 tonnes more than the previous week. The top destination was Yemen with 72,500 tonnes.
