By Marlo Glass, MarketFarm
WINNIPEG, April 21 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished lower on Tuesday, following pricing trends set in yesterday’s session.
A lower tone for Malayian palm oil, European rapeseed, and Chicago soy was a bearish influence on vegetable oils around the world, including canola.
Some producers have return to the fields to harvest last year’s crops, which has also kept pressure on canola values.
Relative weakness in the Canadian dollar provided paltry support to canola. The dollar was at 70 cents at midday.
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On Tuesday, 35,055 contracts were traded, which compares with Monday when 20,831 contracts changed hands. Spreading accounted for 19,190 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were mostly higher on Tuesday, supported by strong export data. However, soyoil posted considerable losses as prices for Malaysian palm oil have kept pressure on vegetable oils around the world.
Last week, export inspections for soybeans totalled 19.8 million bushels. That was higher than the previous week and also higher than the same week a year ago. Monthly year to date soybean exports total 1.2 billion bushels, which is about 6 per cent higher than the same time last year.
According to data from the United States Department of Agriculture (USDA), soybeans are 2 per cent planted, which is slightly above the five-year average.
CORN futures were weaker on Tuesday due to the prolonged lack of demand for ethanol. Steep losses in crude oil futures have also weighed on the ethanol market.
Free-falling crude oil futures have contributed to the bearish tone in the ethanol market. Yesterday, West Texas Intermediate (WTI) crude oil futures for May closed at negative values for the first time in history. Today, Brent crude futures for June declined by 25 per cent to hit around US$18 dollars per barrel. Experts expect crude oil futures to stay lower due to high inventories, lack of storage space, and low global demand due to the COVID-19 pandemic.
According to the USDA, corn export inspections totalled 26.92 million bushels last week, which was 49.5 per cent lower when compared to the same week last year.
Corn planting progress in the U.S. is 7 per cent completed.
WHEAT futures were mixed on Tuesday, with losses in Minneapolis and Chicago, while Kansas City showed gains.
Last week, marketing year to date shipments totalled just under 22 million tonnes.
Spring wheat planting in the U.S. is 7 per cent complete, which is down from the 5 year average of 18 per cent.
Winter wheat ratings fell by five per cent this week to total 57 per cent good to excellent.
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