North American Grain/Oilseed Review: Canola higher with corn, soybeans

WINNIPEG — The ICE Futures canola market made gains on Tuesday following the leads of Chicago soyoil and European rapeseed.

The prices for both products surged, while Malaysian palm oil was mostly lower. Crude oil had a correction, showing some weakness despite Saudi Arabia’s plans to cut production starting in July.

At mid-afternoon, the Canadian dollar was up one-tenth of a United States cent compared to Monday’s close.

About 38,166 canola contracts were traded on Tuesday, which compares with Monday when 26,474 contracts changed hands. Spreading accounted for 22,826 of the contracts traded.

The July CORN contract on the Chicago Board of Trade (CBOT) nearly recuperated the previous day’s losses on Tuesday.

The United States Department of Agriculture (USDA) reported that 96 per cent of the country’s corn crop was planted as of June 4, compared to the 91 per cent average. Meanwhile, the crop’s emergence was at 85 per cent, eight points above the average. However, the U.S. corn crop was only rated at 64 per cent good to excellent, below the trade’s expectations.

Prior to the USDA’s monthly World Agricultural Supply/Demand Estimates (WASDE) to be released on Friday, the average trade estimate called for a 30 million-bushel decrease in production to 15.235 billion. Global old crop stocks were also estimated at 297.4 million tonnes.

Crop consultant Dr. Michael Cordonnier lowered his U.S. corn yield estimate by one bushel per acre to 179, with production set at 14.94 billion bushels.

SOYBEANS showed modest gains on Tuesday, making up for what was lost on Monday.

The U.S. soybean crop was 91 per cent planted, up eight points from last week and up 15 points from the average. The crop’s emergence was at 74 per cent, ahead of the 56 per cent average. Despite these figures, the crop was only rated at 62 per cent good to excellent.

The trade expects a 7.6 million-bushel cut in production to 4.502 billion ahead of Friday’s WASDE report.

Dr. Cordonnier left his U.S. soybean estimates unchanged at a projected yield of 52 bushels per acre, which pegged production at 4.53 billion bushels.

While Chicago soft WHEAT contracts went up, Kansas City hard red and Minneapolis spring varieties were lower to end Tuesday.

The USDA reported that the winter wheat harvest was four per cent complete, with 82 per cent headed compared to the 81 per cent average.

The USDA also reported that 93 per cent of the country’s spring wheat crop was planted, with emergence at 76 per cent. The spring wheat crop was rated at 64 per cent good to excellent.

Traders have estimated an average increase of 13 million bushels in wheat production to 1.672 billion ahead of Friday’s WASDE report.

Bulgaria, Hungary, Poland, Romania and Slovakia all extended their bans on Ukrainian grain imports up to Sept. 15.

Australia’s wheat crop is expected to drop 34 per cent from last year to 26.2 million tonnes due to predictions of a dry winter.