By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 20 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Tuesday reaching new contract highs.
Traders continued to roll out of their November contracts before they expired in what has become a bull market.
There was spillover from sharp gains in Chicago soyoil, along with additional support from higher European rapeseed.
Strength in the Canadian dollar weighed on values, preventing further gains in canola. At mid-afternoon, the loonie was at 76.25 U.S. cents, compared to Monday’s close of 75.96.
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Manitoba is scheduled to release its weekly crop report later this afternoon. The provincewide harvest is expected to be virtually complete. Last week crops across Manitoba were 95 per cent finished with canola at 98 per cent in the bin.
There were 46,326 contracts traded on Tuesday, which compares with Monday when 43,754 contracts changed hands. Spreading accounted for 34,832 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 538.00 up 4.90
Jan 541.70 up 5.50
Mar 546.40 up 5.10
May 545.50 up 3.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Tuesday, as any remaining harvest pressure has dissipated.
The United States Department of Agriculture (USDA) issued its weekly crop progress report yesterday. The soybean harvest was 75 per cent complete as of Oct. 18, improving 14 points from the previous week. As well, the harvest was well above the five-year average of 58 per cent finished. Soybeans dropping leaves rose four points to 97 per cent.
The USDA reported a private sale of 132,000 tonnes of soybeans to unknown destinations. Delivery is to be during the current marketing year.
Ag Rural reported the planting of soybeans in Brazil was slightly below eight per cent countrywide as of Oct. 15.
CORN futures were higher on Tuesday, also due to reduced harvest pressure.
The U.S. corn harvest reached 60 per cent done. Corn matured was at 97 per cent and crop’s condition held at 61 per cent good to excellent.
Snowfall on the U.S. Northern Plains and the Upper Mississippi River Valley will slow further harvest progress, as will rain on the Eastern Corn Belt. The Northern Plains were forecast to get the coldest October temperatures in 125 years.
Ag Rural placed the seeding of corn in the center-south region of Brazil at 44 per cent complete. After receiving less than 25 millimeters of rain over the last week, Brazil was forecast to get more rain this week.
WHEAT futures were higher on Tuesday, as dry conditions affect crops in the U.S., Russia and Argentina.
The planting of winter wheat was estimated at 77 per cent complete, for a gain of nine points from the previous week. Seeding was five points above the five-year average. A little over half of the crop was emerged, but persistent dry conditions will hamper further emergence.
Dry conditions in Russia still persist after recent rains failed to provide sufficient moisture for the newly planted wheat crop.
The 2020/21 wheat crop in Argentina was projected to come in at about 17 million tonnes, according to a report.
In international sales, Algeria issued a tender for 50,000 tonnes of wheat, South Korea is seeking 60,000 tonnes of feed wheat, Japan has called for 80,000 tonnes of wheat and Ethiopia issued a tender for 280,000 tonnes.
