By Glen Hallick, MarketsFarm
WINNIPEG, March 3 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher on Thursday, with the strongest gains in the old crop months.
Support came from gains in the nearby Chicago May soybean contract and in soymeal, as well as upticks in Malaysian palm oil.
However Chicago soyoil stepped back, unable to hold onto earlier gains. European rapeseed advanced in its nearby May contract, but incurred losses in its remaining positions.
After attempting to remain relatively steady, global crude oil prices fell back, putting pressure on edible oils.
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There have been more warnings that prices for canola and other commodities are to spiral downward once the war premiums, induced by Russia’s invasion of Ukraine, begin to fade away.
The Canadian dollar was slightly lower at mid-afternoon, with the loonie at 78.83 U.S. cents, compared to Wednesday’s close of 78.94.
There were 19,839 contracts traded on Thursday, which compares with Wednesday when 19,934 contracts changed hands. Spreading accounted for 6,572 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 1,091.30 up 22.00
Jul 1,056.00 up 17.90
Nov 890.10 up 5.60
Jan 889.20 up 4.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) were mixed on Thursday, with the nearby May contract retaining its gains while the other positions lost ground.
The United States Department of Agriculture issued its export sales report and for the week ended Feb. 24 old crop soybeans came to 857,000 tonnes, down 31 per cent from the previous week. New crop sales were nearly 1.39 million tonnes.
As well, soymeal export sales comprised of 95,400 tonnes of old crop and 60,000 tonnes of new crop. Soyoil sales totalled 6,600 tonnes.
The USDA announced a private sale of 132,000 tonnes of soybeans to China. Delivery is to be split evenly between the 2021/22 and 2022/23 marketing years.
Ahead of the next USDA supply and demand report, Futures International projected 2021/22 soybean ending stocks to dip 2.3 per cent from the February estimates at 633,000 tonnes. Global soybean ending stocks were forecast to fall 5.7 per cent at 87.5 million tonnes.
For South America, FI has slotted soybean production in Argentina slip from 45 million tonnes to 42.5 million, Brazilian production is to lose 3.7 per cent at 129 million tonnes.
CORN futures were stronger on Thursday, but stepped away from limit up gains in the May contract.
The USDA reported 485,100 tonnes in export sales of old crop corn, down 53 per cent on the week. New crop sales came to 222,800 tonnes.
The department said there’s a private sale of 337,000 tonnes of corn to unknown destinations. Delivery is to be during the current marketing year.
FI projected the U.S. corn carryover to ease back 1.6 per cent at 1.515 billion bushels. The world carryout is to dip 1.06 per cent at 299 million tonnes.
Also, the consultancy projected Argentine production to fall two million tonnes at 52 million, while Brazil is to lose one million at 113 million tonnes.
WHEAT futures finished limit up in their May contracts on Thursday, as the war in the Ukraine continued to place a premium on prices.
At 300,000 tonnes, old crop wheat export sales dropped 42 per cent on the week. New crop sales amounted to 69,800 tonnes.
FI set its call on U.S. wheat ending stocks to fall back 2.3 per cent at 633 million tonnes. The global wheat carryout is nudged lower by 600,000 tonnes at 277.6 million.
