By Glen Hallick, MarketsFarm
WINNIPEG, April 27 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mostly lower on Tuesday, with only the soon-to-expire May contract making gains in a very volatile session.
Tight supplies guided May canola along with strong support from the May contracts in Chicago soyoil and European rapeseed. However, those edible oils saw declines in their other positions. Meanwhile, Malaysian palm oil was higher in its most active months.
Statistics Canada projected a 3.6 per cent increase canola plantings for this spring at 21.5 million acres, which was on the low end of market expectations. There was speculation that the federal agency understated the amount of canola to be seeded, while its findings were already somewhat dated. Also, it’s believed the additional plantings won’t be enough to rectify tight canola supplies come harvest.
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At mid-afternoon the Canadian dollar was relatively steady with the loonie at 80.59 U.S. cents, compared to Monday’s close of 80.57.
There were 21,079 contracts traded on Tuesday, which compares with Monday when 14,754 contracts changed hands. Spreading accounted for 9,390 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 901.90 up 7.50
Jul 837.10 dn 2.90
Nov 693.90 dn 4.50
Jan 691.60 dn 4.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Tuesday, due to profit-taking.
In the weekly crop progress report from the United States Department of Agriculture (USDA), for the week ended April 25 soybeans planted were up five points at eight per cent complete.
Dr. Michael Cordonnier of Soybean and Corn Advisor maintained his projections on South American soybean production with Brazil at 133 million tonnes and Argentina at 45 million.
Egypt issued a tender for 30,000 tonnes of soyoil and 10,000 tonnes of sunflower oil.
CORN futures were mixed on Tuesday, as the immediate May contract was stronger while the July contract was lower.
The USDA reported corn planted gained nine points at 17 per cent finished. However, crop emergence has been slow due to cool weather.
Warmer temperatures are in the forecast this week for much of the U.S., but those could bring rain showers that would slow planting progress.
Cordonnier slashed his estimate on Brazil’s corn production by three million tonnes to now 100 million, due to dry conditions. The doctor kept his call on Argentina’s soybean crop at 45.5 million tonnes.
Statistics Canada pegged Canadian corn planting for 2021/22 at 3.62 million acres, for a 1.8 per cent increase over what had been seeded in 2020/21.
WHEAT futures were mixed on Tuesday, with declines in Chicago and Minneapolis, while Kansas City had gains.
The USDA said spring wheat planted increased 11 points at 28 per cent done. Winter wheat conditions fell four points at 49 per cent good to excellent.
Statistics Canada estimated total Canadian wheat acres are to drop by almost seven per cent from 2020/21 at 23.26 million. However, durum acres are to bump up from about 5.69 million last year to nearly 5.71 million this year. Also, the Canadian agency projected a 13.9 per cent jump in barley acres at 8.61 million.
