By Glen Hallick, MarketsFarm
WINNIPEG, June 12 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mixed on Monday with gains in the most heavily-traded contracts.
The vegetable oils fought against sharp losses in crude oil after Goldman Sachs forecast weaker global demand and increased supplies in 2023. European rapeseed ended the day with gains while Malaysian palm oil was a pinch lower. Chicago soyoil fell back, while soybeans were mixed and soymeal inched upward.
There’s to be a split in the weather on Prairies in the coming days, as Alberta is to be cooler with chances of rain. Saskatchewan and Manitoba are forecast to be much warmer and with little chance of precipitation.
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Crush margins continued to push higher, which further underpinned canola values.
As Glencore is reportedly set to sell its Viterra assets to Bunge, questions about the two companies’ Canadian operations could arise.
The Canadian dollar was lower at mid-afternoon Monday, with the loonie at 74.78 U.S. cents, compared to Friday’s close of 74.96.
There were 40,405 contracts traded on Monday, which compares with Friday when 42,111 contracts changed hands. Spreading accounted for 28,146 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 689.00 up 3.10 Nov 665.70 up 0.80 Jan 672.00 dn 0.10 Mar 684.30 dn 1.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were mixed on Monday, with losses in the up front contracts and gains in the more deferred positions.
For the week ended June 8, the United States Department of Agriculture reported soybean export inspections of 140,179 tonnes. That’s down from the previous week’s 222,305 and far below the 608,973 a year ago. The year-to-date rose to 48.84 million tonnes, compared to 50.53 million this time last year.
A report said the European Union could turn to U.S. soyoil for biodiesel production after it accused China of making the fuel from phony ingredients.
The Malaysian Palm Oil Board reported palm oil production in May jumped nearly 27 per cent from April at 1.52 million tonnes. Despite an ongoing labour shortage, the board said there were more harvesting days.
CORN futures were stronger on Monday, as the U.S. Eastern Corn Belt failed to get the rain it was forecast to receive.
U.S. corn inspections amounted to 1.17 million tonnes, slipping from 1.21 million last week and 1.22 million a year ago. The year-to-date reached 31.10 million tonnes versus almost 45 million a year ago.
AgRural placed the safrinha corn harvest in Brazil at 2.2 per cent complete, four points behind last year’s pace. The consultancy forecast total corn production in the country to hit a record 127.4 million tonnes.
WHEAT futures were mixed on Monday, with gains in Chicago and Minneapolis while Kansas City was steady to lower.
The USDA said wheat export inspections were 246,559 tonnes, down from the 304,400 last week and 411,916 last year. Early in the new marketing year for wheat, the total now stands at 317,051 tonnes compared to 638,625 last year.
As wheat prices in India jumped eight per cent over the last month, the government announced a stock limit after it accused “unscrupulous elements” of hoarding wheat.
Due to dry conditions in Spain and northern Europe, Coceral cut its forecast for 2023/24 cereal production in the EU and the United Kingdom by 2.2 per cent from its May estimate to 296.7 million tonnes.
Russian grain supplier Agric SA said it might have to look to other sources of wheat to fulfill a 55,000-tonne purchase made by Egypt last week. While the latter accepted a tender for US$229 per tonne free on board, Agric SA failed to withdraw its offer as it was below the unofficial price floor of US$240/tonne.
