North American Grain and Oilseed Review: A day of pull backs for canola

By Glen Hallick, MarketsFarm

WINNIPEG, May 13 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were weaker on Thursday.

The old crop July contract was down the expanded daily limit of $45 per tonne for nearly all of the session.

A trader noted there has been an overreaction to inflation in the United States, which has been driving down the markets. That combined with profit-taking put a great deal of pressure on canola.

Dryness across the Prairies is reportedly having some farmers thinking twice about planting canola this spring, or at least until there is significant rainfall. The weather outlook for the Prairies has called for warm temperatures and little, if any, rain over the next six to 10 days.

Saskatchewan Agriculture reported overall planting progress in that province increased by more than four-fold at 38 per cent complete. However, crop emergence was being hampered by dryness.

At mid-afternoon, the Canadian dollar was weaker, with the loonie at 82.17 U.S. cents compared to Wednesday’s close of 82.67.

There were 22,575 contracts traded on Thursday, which compares with Wednesday when 32,369 contracts changed hands. Spreading accounted for 8,862 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jul 857.30 dn 45.00
Nov 736.90 dn 17.80
Jan 727.10 dn 19.00
Mar 713.10 dn 18.60

SOYBEAN futures at the Chicago Board of Trade (CBOT) were significantly lower on Thursday, due to a market overreaction towards inflation in the United States.

The U.S. Department of Agriculture (USDA) issued its export sales report for the week ended May 6, showing old crop soybean sales of 94,300 tonnes. That was a drop of 43 per cent from the previous week and came in at the low end of market expectations. New crop sales were 102,500 tonnes and were well under trade forecasts. Soymeal sales amounted to 74,600 tonnes of old crop and 32,000 tonnes of new crop. At 800 tonnes, soyoil sales fell 87 per cent.

Across the U.S. Plains and Midwest, temperatures were forecast to exceed 20 degrees Celsius today, allowing for good planting progress of all crops.

CORN futures were weaker on Thursday, finishing at its down limit of 40 cents per bushel.

Significant declines in global benchmark crude oil prices weighed heavily on corn values.

Old crop corn export sales hit a marketing year low of net reductions of 113,400 tonnes, which were far below trade projections. Meanwhile, the USDA said new crop export sales were 2.08 million tonnes, which were on the high end of market guesses.

The USDA announced a private sale of 680,000 tonnes of corn to China. Delivery is to be during the 2021/22 marketing year.

Strategie Grains bumped up its projections for the European Union’s 2021/22 corn crop by 100,000 tonnes at 65.2 million.

WHEAT futures were down sharply on Thursday, caught up in the downward trend.

The USDA said old crop wheat export sales were all of 30,300 tonnes and new crop sales came to 268,000 tonnes. Both figures were within market expectations.

Strategie Grains raised its projection for EU wheat exports from 27.1 million tonnes to 27.5 million, and the consultancy kept its production forecast at 129.6 million tonnes.

Futures Prices as of May 13, 2021

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

explore

Stories from our other publications