By Glen Hallick, MarketsFarm
WINNIPEG, Dec 29 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures made double-digit gains on Thursday, which an analyst said holiday trading often doesn’t make a lot of sense.
Support for the Canadian oilseed came from good upticks in Chicago soyoil, as well more modest increases in European rapeseed and Malaysian palm oil. However pressure came from losses in soymeal as well as global crude oil prices.
Trading in the nearby January canola contract has thinned rapidly, with its open interest slipping below 1,200. The first notice day for all January futures is tomorrow.
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The Canadian dollar was slightly higher at mid-afternoon Thursday, with the loonie at 73.81 U.S. cents, compared to Wednesday’s close of 73.72.
There were 21,096 contracts traded on Thursday, which compares with Wednesday when 24,246 contracts changed hands. Spreading accounted for 12,460 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Jan 871.10 up 12.10 Mar 875.10 up 11.10 May 872.30 up 10.80 Jul 870.70 up 11.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly higher on Thursday, with stronger gains in soyoil but small losses in soymeal.
The United States Department of Agriculture (USDA) postponed its weekly export sales report to Friday due to the Christmas holiday.
Also, the USDA is scheduled to issue its next supply and demand estimates on Jan. 12, which will include the department’s final estimates for production in 2022. As well, the USDA will release its quarterly grain stocks report that day.
The U.S. weather forecast has rain or snow falling in the Mid-South, the eastern Corn Belt and the Great Lakes regions. Temperatures are expected to be warmer than normal during much of the first half of January.
Argentina reported that nearly 79 per cent of its 2021/22 soybean crop has been sold.
Egypt purchased 30,000 tonnes of soyoil and 12,000 tonnes of sunflower oil in a tender.
WHEAT futures were weaker on Thursday due to a lack of fresh news.
On Jan. 12, the USDA is set to release its first assessment for the 2023 winter wheat plantings.
A report said that some insurance companies are now reluctant to provide coverage for vessels traveling to and from Ukrainian ports. That could reduce the number of available ships to move the country’s grain exports.
As the Ukrainian military continued to liberate territory from Russian forces, the latter pressed on with its missile and drone attacks against Ukrainian power infrastructure.
Russia projected its 2022/23 wheat crop to come in at 105.7 million tonnes, which is well above the USDA’s call of 91 million. SovEcon pegged Russian wheat production at 101.2 million tonnes. The differences are said to be due how wheat from annexed Ukrainian territory is calculated.
Argentina reported that 48 per cent of its 2022/23 wheat crop has been sold.
CORN futures were lower on Thursday, due to pressure from wheat outweighing support from soybeans.
The U.S. Energy Information Administration (EIA) reported ethanol production for the week ended Dec. 23 averaged 963,000 barrels per day. This was the first time since Oct. 14 that ethanol production averaged less than one million barrels per day. Meanwhile, ethanol stocks added 569,000 barrels and are now at 24.63 million.
Sinograin and COFCO have created a joint venture called the China Enterprise United Grain Reserve Company in an effort to better manage China’s state grain reserves.
Argentina said about 74 per cent of its 2021/22 corn crop has been sold.
