By Glen Hallick, MarketsFarm
WINNIPEG, March 30 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were significantly weaker on Tuesday, due to steep losses in Chicago soyoil.
During today’s session the May and July contracts bottomed out at the C$30 per tonne daily limit, but managed to settle slightly above those lows.
A trader said spec funds are concerned tomorrow’s reports from the United States Department of Agriculture could impact the market. That led to a great deal of liquidation in soyoil, which spilled over into canola.
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There were also losses in European rapeseed and Malaysian palm oil.
Although canola supplies are believed to be quite tight in Canada, that combined with a weaker Canadian dollar couldn’t temper the declines in canola.
At mid-afternoon, the loonie was at 79.15 U.S. cents compared to Monday’s close of 79.40.
There were 20,926 contracts traded on Tuesday, which compares with Monday when 21,682 contracts changed hands. Spreading accounted for 8,620 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 727.10 dn 29.10
Jul 687.70 dn 28.50
Nov 589.50 dn 16.00
Jan 592.70 dn 16.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Tuesday, due to position ahead of two United States Department of Agriculture (USDA) reports.
Going into tomorrow’s USDA prospective plantings report, trade expectations for soybean acres in 2021 are about 90 million. That’s up from the 83.08 million planted a year ago. The USDA issues its report on Wednesday at 11 am Central.
May soyoil dropped to its daily limit of 2.5 cents per pound, where it finished.
Soybean and Corn Advisor’s Dr. Michael Cordonnier has projected U.S. planted soybean acres to be 90.5 million, with yields of 50.8 bushels per acre.
Also, Cordonnier increased his call for soybean production in Brazil by one million tonnes at 133 million. He maintained his projection for Argentina at 46 million tonnes. Meanwhile, Safras and Mercado pegged their production estimate for Brazil at 134.09 million tonnes.
Goodyear Tire and Rubber Company announced it’s working with the United Soybean Board (USB) to phase out petroleum-derived oils in the company’s products by 2040.
The European Union reported its soybean imports, as of March 28, were 11.02 million tonnes. That’s up nearly 3.9 per cent from a year ago.
CORN futures were lower on Tuesday, following soybeans.
Cordonnier called for U.S. planted corn acres to be 93 million, which is on par with many trade guesses. The doctor expects yields of 177.5 bu/ac. Last year about 90.8 million acres of corn were planted in 2020.
The USDA reported a private sale of 110,800 tonnes of corn to unknown destinations. Delivery is to be during the current marketing year.
Corn planting in Texas was reported to be 50 per cent complete. That’s four points ahead of the five-year average.
As for South American corn production, the doctor kept his forecast for Brazil at 105 million tonnes and 45.5 million for Argentina.
WHEAT futures were weaker on Tuesday, due to improving crop conditions in the U.S.
Winter wheat in Kansas rose to 50 per cent good to excellent, with ratings of 61 per cent in Oklahoma, 38 for Nebraska and 28 for Colorado and Texas.
The U.S. dollar continued to gain strength, which weighed on wheat values. The greenback gained 0.324 at 93.280 on the U.S. Dollar Index.
