By Glen Hallick, MarketsFarm
WINNIPEG, June 3 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Tuesday, in a light volume of trading.
The July canola contract was down C$2.20 at C$453.10 per tonne. The November contract was down C$2.30 at C$466.30 per tonne.
The Canada/China dispute and large supplies have continued to weigh on canola values, as did a stronger Canadian dollar. On Tuesday afternoon the loonie was about 74.65 U.S. cents.
The markets have been waiting to see if forecasts for rain later this week pan out. The dry conditions across much of Western Canada have provided a weather premium for canola. While planting is nearing completion, the lack of rain has hurt germination and growth.
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There were 13,725 contracts traded on Tuesday, which compares with Monday when 19,019 contracts changed hands. Spreading accounted for 7,482 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 453.10 dn 2.20
Nov 466.30 dn 2.30
Jan 472.40 dn 1.90
Mar 477.60 dn 1.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Tuesday, due the pace of planting in the United States
The U.S. Department of Agriculture (USDA) reported yesterday in its weekly crop progress report that 39 per cent of the country’s soybean crop has been planted, but well behind the five-year average of 79 per cent.
The USDA releases its weekly export sales report on Thursday and its World Supply and Demand Estimates on June 11.
While wet conditions on the U.S. Midwest and Plains have impeded planting this year, dry conditions are a looming worry on parts of the Canadian Prairies, Minnesota, North Dakota and Montana. Australia and the Black Sea region are suffering from cry conditions as well.
CORN futures were slightly stronger on Tuesday, also due to planting being behind pace.
The USDA reported 67 per cent of corn is in the ground, while the five-year average is 96 per cent planted.
Brazil’s second corn crop is expected to reach 70.2 million tonnes, an increase of 2.5 per cent. Brazil’s corn exports are set to increase by one million tonnes at 33.0 million tonnes this year.
WHEAT futures were weaker on Tuesday, with planting getting close to completion.
The USDA said spring wheat planting is 93 per cent finished; only three points back of the five-year average. Winter wheat nation-wide was rated as 64 per cent good to excellent condition.
SovEcon downgraded its estimate for Russia’s wheat crop in 2019 by 726,000 tonnes at 75.659 million tonnes, despite an increase in acres planted. Dry conditions are likely to reduce yields.
