By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 30 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were stronger on Monday with he largest gains in the old crop months.
An analyst said the sharp upticks in the Canadian oilseed were likely due to an increase in short covering.
Support for canola came from a stronger Chicago soy complex as well more moderate increases in European rapeseed and Malaysian palm oil. Declines in global crude oil prices attempted to stymie further gains in vegetable oils.
Strong crush margins continued to underpin canola values
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The Canadian dollar was lower at mid-afternoon Monday, which benefitted canola. The loonie pulled back to 74.73 U.S. cents compared to Friday’s close of 75.11.
There were 38,287 contracts traded on Monday, which compares with Friday when 26,314 contracts changed hands. Spreading accounted for 29,202 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Mar 827.90 up 20.20 May 826.80 up 19.30 Jul 828.70 up 19.00 Nov 808.80 up 15.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Monday, as Argentina continued to struggle with drought.
The United States Department of Agriculture (USDA) issued its export inspections report for the week ended Jan. 26. Outbound movements of soybeans were almost 1.86 million tonnes, for a bump of 0.9 per cent from the previous week. The year-to-date reached 35.99 million tonnes, 1.3 per cent behind those this time last year.
The USDA’s next supply and demand report is slated for Feb. 8.
Lunar New Year celebrations have wrapped up with the markets returning to regular business.
Ahead of CONAB’s next supply and demand report, Futures International pegged Brazil’s 2022/23 soybean output at 152.08 million tonnes. In January, CONAB estimated the crop at 152.71 million tonnes.
Safras and Mercado reported the Brazil soybean harvest was more than four per cent complete, seven points behind this time last year. However, AgRural and Patria Agronegocios respectively placed the harvest at about five per cent done compared to around 10 to 11 per cent a year ago. The slower pace has been due to wetter conditions in some areas of Brazil.
Deral estimated the Brazil state of Parana will produce 20.7 million tonnes of soybeans, three per cent less than last year.
CORN futures were slightly higher on Monday, as the market expects prices to remain sideways for the time being.
The USDA announced a private sale of 112,000 tonnes of current crop corn to Japan.
The department calculated corn export inspections for the week at 527,932 tonnes, down 27.6 per cent from last week. The year-to-date was about 12.04 million tonnes, down 31.4 per cent from this time last year.
Safras and Mercado cut its forecast on the first Brazil corn harvest to 23.7 million tonnes, pointing to the drought areas of the country. Meanwhile, Deral projected corn production in Parana at 3.7 million tonnes for the Brazil state’s first crop and 15.4 million for the second.
Futures International projected the 2022/23 Brazil corn crop to come in at just under 125.0 million tonnes. In January, CONAB estimated the crop at 125.06 million tonnes.
Expectations pointed to European Union farmers planting less corn in 2023 due to expensive input costs.
The Ukraine Grain Association (UGA) said because of the war, Ukraine’s corn production won’t surpass 18 million tonnes this year.
WHEAT futures were mostly higher on Monday, with the Minneapolis March contract closing unchanged.
The USDA reported wheat export inspections of 445,433 tonnes were up 27.5 per cent from a week ago. The year-to-date inspections tallied 13.22 million tonnes, 2.9 per cent below those at this time last year.
The UGA said Ukraine’s wheat production in 2022/23 very likely won’t exceed 16 million tonnes.
