By Glen Hallick, MarketsFarm
WINNIPEG, June 16 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were steady to higher on Tuesday, as traders continued to roll out of the July contract into the nearby November contract.
There was additional support from gains in Chicago soyoil and European rapeseed. However losses in Malaysian palm oil weighed on values.
A trader said the dry conditions throughout most of the Prairies were helping to push up prices, along with pockets of excessive moisture.
The Canadian dollar was higher at mid-afternoon at 73.72 U.S. cents compared to Monday’s close of 73.51.
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There were 29,079 contracts traded on Tuesday, which compares with Monday when 37,766 contracts changed hands. Spreading accounted for 20,986 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 473.30 up 2.10
Nov 474.40 up 0.70
Jan 480.30 up 0.70
Mar 485.90 up 0.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Tuesday, as crop conditions remained on the good side.
The Trump administration said it will propose US$1 trillion in funding for infrastructure in the United States. It’s twice the amount Democrats recently proposed for a new program. The current US$350 million infrastructure program, passed five years ago, is scheduled to expire on Sept. 30.
Amid high tensions, U.S. Secretary of State Mike Pompeo will meet with one of China’s top diplomats, Yang Jiechi, in Hawaii on Wednesday. It marks the first meeting between senior officials from the U.S. and China since the signing of the Phase One trade deal in January.
Dozens of U.S. farm groups, including the American Soybean Association, have urged the Trump administration to give China more time to meet its Phase One pledges. Currently, U.S. soybean sales to China are at their lowest point in five years, according to a report.
Dr. Michael Cordonnier of Soybean and Corn Advisor kept his estimate of U.S. soybean production in 2020 at 51 bushels per acre (bu/ac) for 4.29 billion bushels.
CORN futures remained steady on Tuesday, as its crop rating fell more than expected.
In the U.S. Department of Agriculture’s (USDA) weekly crop progress report issued on Monday, corn came in at 71 per cent good to excellent as of June 14. That was four points less than what the markets predicted, but it’s well above the 59 per cent this time last year. Nevertheless the latest rating has raised doubts the department’s projection of 178.5 bu/ac.
However, Cordonnier’s latest U.S. corn estimate calls for 179.5 bu/ac. producing 15.65 billion bushels.
Ukraine is expected to remain a strong competitor for U.S. corn exports in 2020/21 with a large crop of 35.4 million tonnes forecast. That’s despite it being 400,000 tonnes that the country’s 2019/20 crop.
WHEAT futures were steady to lower on Tuesday, as Russia won’t impose export quotas from July to December.
The European Union lowered its yield for soft wheat in 2020 to 5.6 tonnes per hectare, matching the USDA’s estimate.
In international sales, Japan issued a tender for more than 76,140 tonnes of wheat from the U.S. and Australia, while Taiwan placed a tender for 88,815 tonnes of wheat to be delivered in August.
