By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 2 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures pushed further upward Tuesday, hitting new contract highs in what a trader called a show of independent strength.
Tight supplies, good demand despite price rationing, and seller reluctance underpinned canola values. Gains in European rapeseed along with those in Chicago soybeans and soymeal provided additional support.
Meanwhile, Chicago soyoil closed virtually unchanged and Malaysian palm oil was slightly lower. Declines in global crude oil prices weighed on edible oil values.
At mid-afternoon the Canadian dollar was lower with the loonie at 80.61 U.S. cents, compared to Monday’s close of 80.85.
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There were 22,972 contracts traded on Tuesday, which compares with Monday when 18,380 contracts changed hands. Spreading accounted for 16,596 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 990.80 up 20.60
Mar 963.70 up 17.60
May 930.70 up 15.80
Jul 885.70 up 13.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Tuesday, with gains in soymeal while soyoil was virtually unchanged.
Cooler temperatures have been forecast along with snow, ice and rain for most of the United States according to the National Oceanic and Atmospheric Administration (NOAA).
The U.S. Department of Agriculture (USDA) issued its weekly crop progress report on Monday, showing the soybean harvest at 79 per cent finished as of Oct. 31. That was a gain of six points on the week and two behind the five-year average as rains slowed combining.
StoneX said it’s projecting 2020/21 U.S. soybean yields at 51.9 bushels per acre, 0.4 more than the USDA’s October call of 51.5 bu/ac. The department is scheduled to release its next supply and demand estimates a week from today.
Soybean and Corn Advisor’s Dr. Michael Cordonnier cut one million tonnes from is call on Argentine soybeans for 2021/22 at 50 million, due to farmers switching to corn. He kept his projection for Brazil’s soybean production at 144 million tonnes.
Strategie Grain trimmed its estimate of the 2021 European rapeseed crop by just under 0.4 per cent at 16.97 million tonnes. However, that would still be 2.2 per cent more than the previous year’s harvest. The consultancy bumped up its call on the EU’s sunflower crop by almost two per cent at 10.16 million tonnes. That would also be 2.1 per cent more than last year’s crop.
CORN futures were lower on Tuesday, pulled down by declines in the wheat complex.
The U.S. corn harvest was reported to be 74 per cent finished, up eight points from last week and eight above the average pace.
The USDA said 164.1 million bushels of corn were used for ethanol production in September, slightly higher than trade expectations.
StoneX has pegged 2020/21 U.S. corn yields at 177.7 bushels per acre versus the USDA’s 176.5.
Cordonnier maintained his forecasts for 2021/22 corn production in Argentina and Brazil at 53 million and 118 million tonnes respectively.
WHEAT futures were steady to lower on Tuesday due to profit-taking, but prices stepped back from larger losses earlier in the session.
The USDA said the planting of winter wheat reached 87 per cent complete, a gain of seven points on the week and virtually on par with the five-year average. About two-thirds has emerged and the crop’s condition rated 45 per cent good to excellent for a dip of one since the last week.
The department reported 230.8 million bushels of wheat were milled from July to September, three per cent more than the previous quarter, but one per cent lower than a year ago.
Chicago oats pulled an about face that saw sharp losses from profit-taking superseded by moderate price increases.
