North American Grain and Oilseed Review: Canola gives up nearly all of yesterday’s increases
Chicago soybeans have trouble finding a direction
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed lower on Tuesday, losing most of yesterday’s gains.
There was a lack of support coming from the Chicago soy complex, European rapeseed and Malaysian palm oil. Modest declines in crude oil put pressure onto the oilseeds.
Canola also felt the weight of its November contract continuing to be mired well below its major moving averages.
The Prairies are to get scattered showers for the balance of this week, with temperatures from the low 20’s to low 30 degrees Celsius.
With both major Canadian railways facing simultaneous work stoppages for the first time come Thursday, the federal government has taken a hands-off approach. Canadian National and Canadian Pacific Kansas City have been left to resolve outstanding issues with the Teamsters Canada Rail Conference.
The Canadian dollar climbed higher by mid-afternoon Tuesday with the loonie at 73.40 U.S. cents compared to Monday’s close of 73.25.
There were 41,707 contracts traded on Tuesday, compared to the 40,651 contracts that changed hands on Monday. Spreading accounted for 25,822 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 565.10 dn 8.40 Jan 576.40 dn 8.70 Mar 585.50 dn 6.40 May 592.20 dn 5.20
SOYBEAN futures at the Chicago Board of Trade were narrowly mixed on Tuesday unable to hang onto either direction.
Day One of the Pro Farmer crop tour found South Dakota soybean pod counts in a three by three foot square to be 1,025.9 compared to 1,013.0 last year. Ohio pod counts came in at 1,229.9 versus 1,252.9 a year ago. For Day Two, one leg is going through Nebraska while the other leg is in Indiana.
The United States Department of Agriculture announced two flash sales of new crop soybeans. One is for 132,000 tonnes to China and the other is for 239,492 tonnes to Mexico.
In the USDA crop progress report, soybean conditions were 68 per cent good to excellent as of August 18, the same as the previous week. Soybeans setting pods advanced 13 points at 72 per cent, slightly above the five-year average. Soybeans blooming bumped up five points at 91 per cent, virtually on par with the average.
China said its July soybean imports were 9.85 million tonnes, of which 9.12 million came from Brazil, down 1.15 per cent from June, and 475,392 came from the U.S., three times higher compared to June.
CORN futures were lower on Tuesday, in facing a sizeable crop come harvest.
The PF crop tour estimated South Dakota corn yields at 156.5 bushels per acre, versus 157.4 last year. Those in Ohio were projected to be 183.3 bu./ac. compared to 183.9 a year ago.
Corn conditions remained at 67 per cent good to excellent, according to the USDA. Corn dented rose 11 points to 18 per cent, six above the average. Corn dough advanced 14 points to 60 per cent, also ahead of pace. Corn silking tacked on six points at 94 per cent, matching the average.
WHEAT futures were higher on Tuesday, as pressure from the winter wheat harvest waned.
U.S. spring wheat was at 72 per cent good to excellent, down two from last week. The spring wheat harvest advanced 13 points at 31 per cent done, a slightly behind the average. The winter harvest added five points at 93 per cent complete, slightly ahead of average.
Russia warned its wheat crop could come in smaller than the 86.0 million tonnes expected due to the bad weather earlier this year. However, SovEcon upped its projected to 83.3 million tonnes from 82.9 million.
European Union soft wheat exports from July 1 to Aug. 18 tallied 3.55 million tonnes down by almost one million tonnes from the same time last year.
Japan issued a tender for 81,442 tonnes of wheat from Canada and the U.S.
