WINNIPEG, June 2 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Tuesday, regaining some of the ground lost in prior trading sessions.
The spread between the July and November contracts is narrowing due to positioning as the expiry date for the July contract draws near.
Continued strength in the Canadian dollar kept a lid on further gains for canola values. The loonie was over 74 United States cents at midday.
Tomorrow, Tiff Macklem will take over from Stephen Poloz as Governor of the Bank of Canada, and the central bank will announce a new interest rate. The bank is expected to keep interest rates at a record-low 0.25 per cent.
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On Tuesday, 11,768 contracts were traded, which compares with Monday when 15,544 contracts changed hands. Spreading accounted for 7,188 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Tuesday, due to steady export demand despite tense United States-China relations.
This morning, the United States Department of Agriculture (USDA) announced that China purchased 132,000 tonnes of soybeans, for delivery during the 2020-2021 marketing year.
U.S. soybean planting progress was 10 percentage points higher this week, totalling 75 per cent. The soybean crop is 52 per cent emerged, which is above the average rate. Initial crop rating were 70 per cent good to excellent.
CORN futures were slightly stronger today, recovering some of yesterday’s losses.
U.S. corn planting is 89 per cent complete, and 73 per cent of the crop has emerged.
Barchart estimates corn production will total 172.4 bushels per acre, but the USDA predicts it will be over 178 bushels per acre.
WHEAT futures were weaker on Tuesday, continuing weakness from yesterday’s trading session.
Spring wheat in the U.S. is 91 per cent planted, and 67 per cent emerged. Initial crop ratings are 80 per cent good to excellent.
The winter wheat crop in the U.S. is 3 per cent harvested.
Ukraine has adjusted their wheat crop forecast to total 23.3 million tonnes, but the USDA has estimated 28 million tonnes.
Ukraine’s agriculture ministry has also estimated lower exports, totalling 14.9 million tonnes.
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