By Glen Hallick, MarketsFarm
WINNIPEG, June 7 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures saw gains in the new crop months on Monday, as dry conditions remain in the immediate weather forecast. However, rain is expected to fall across much of the Prairies later this week.
The liquidation of the old crop July contract continued, with a wide swing in prices. For most of the session, July bounced back and forth either side of unchanged, then fell by the daily limit of $30 per tonne, only to step back from the contact’s low.
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By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were stronger on Thursday, in gleaning support…
Declines in the Chicago soy complex eradicated larger gains in new crop canola. There was support from increases in European rapeseed, but there was pressure from lower Malaysian palm oil.
A trader said as the United States markets jockey for position ahead of the next supply and demand report from the U.S. Department of Agriculture, canola is sure to feel the spillover.
At mid-afternoon the Canadian dollar was slightly higher, with the loonie at 82.84 U.S. cents compared to Friday’s close of 82.75.
There were 24,935 contracts traded on Monday, which compares with Friday when 17,856 contracts changed hands. Spreading accounted for 10,172 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 882.40 dn 22.00
Nov 771.60 up 8.00
Jan 769.60 up 9.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday in the old crop months, while new crop positions were mixed.
The United States Department of Agriculture (USDA) reported weekly export inspections of soybeans were 237,108 tonnes for the week ended June 3. That’s a gain of about 22 per cent from the previous week.
Later this afternoon, the USDA will issue its weekly crop progress report and it will include the first crop ratings for soybeans in 2021.
Also, the department is scheduled to release its monthly supply and demand report on June 10. Trade expectations have called for the old crop soybean carryover to dip approximately 54,400 tonnes at 3.27 million. New crop stocks are projected to rise by about 163,300 tonnes at 3.97 million.
CORN futures saw declines in the old crop July contract on Monday, and gains in the new crop positions.
Hot and dry weather has been forecast over the next 10 to 15 days for the much of the U.S. Corn Belt. Southern parts of the Corn Belt are expected to receive rain this week.
The USDA said corn export inspections were 1.41 million tonnes, which were down by a third from the previous week.
Ahead of the S&D report on Thursday, the trade projected old crop corn ending stocks to be down 1.27 million tonnes at 30.66 million. New crop stocks are pegged to drop by 789,250 tonnes at 36.15 million.
The trade has projected a five million-tonne cut to 2020/21 Brazil corn production in Thursday’s S&D report, which would bring the country’s production to 97 million tonnes. Meanwhile, IHS Markit slashed its forecast to 88 million tonnes. The trade pegged Argentina corn production to lose 500,000 tonnes at 46.5 million.
Russia set its export tax on corn at US$50 per tonne on Friday for the period of June 9 to 15.
WHEAT futures were lower on Monday, with the hardest declines in Minneapolis wheat.
Rain has been forecast this week for North Dakota and parts of the neighbouring states. Drought conditions have hampered the development of wheat and other crops throughout the state.
The USDA reported outbound wheat movements totaled 418,547 tonnes, for a jump of nearly 61 per cent.
Market projections for Thursday add just over 544,300 tonnes to U.S. wheat production at 51.49 million. That includes hard red winter wheat jumping by 789,250 tonnes at 20.68 million.
Due to improved conditions in southern and central Russia, IKAR increased its call on that country’s 2021/22 wheat production by 500,000 tonnes at 80 million.
From June 9 to 15, Russia’s export tax on wheat will be US$29.40/tonne and US$39.60/tonne on barley.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) raised its call on the country’s 2021/22 wheat crop by 11.2 per cent at 27.8 million tonnes.
