By Glen Hallick, MarketsFarm
WINNIPEG, Dec 7 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher at the close on Thursday. The front contracts remained on the upswing throughout the session, while the deferred positions turned around to make gains.
A trader said the shorts are scrambling to exit their January positions. He also noted the canola spreads are becoming narrower.
Support for the Canadian oilseed came from upticks in the Chicago soy complex and European rapeseed. Malaysian palm oil failed to overcome earlier losses to finish slightly lower. Declines in global crude oil prices put pressure on vegetable oils.
Read Also
Canadian Financial Close: More losses for loonie
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar slipped below 72 U.S. cents on Thursday, as…
Canola crush margins continued to moderate, taking away a little bit of support from the oilseed.
The Canadian dollar was higher at mid-afternoon, with the loonie at 73.63 U.S. cents, compared to Wednesday’s close of 73.31.
There were 41,117 contracts traded on Thursday, which compares with Wednesday when 26,164 contracts changed hands. Spreading accounted for 29,984 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Jan 875.20 up 11.60 Mar 861.10 up 8.70 May 861.30 up 7.50 Jul 861.80 up 6.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Thursday, riding a wave of strong sales.
The United States Department of Agriculture (USDA) announced two private sales for current crop soybeans: 118,000 tonnes to China and 718,000 tonnes to unknown destinations.
The department released its export sales report for the week ended Dec. 1. Current crop soybean sales were almost 1.72 million tonnes plus 30,000 tonnes of new crop sales. Soymeal sales came to 226,200 tonnes of current crop and 15,000 tonnes of new crop. Soyoil sales amounted to 500 tonnes.
Ahead of tomorrow’s USDA supply and demand estimates, the trade believes 2022/23 ending stocks for U.S. soybeans will increase slightly. Reports indicated global soybean ending stocks are to bump up as well.
CONAB in Brazil issued its monthly report and the agency trimmed its call on the country’s 2022/23 soybean production by a very small amount to 153.48 million tonnes.
Meanwhile, ANEC pegged Brazil’s soybean exports for December to come to 1.7 million tonnes, plus 1.54 million tonnes of soymeal.
After soybean sales were lagging earlier this year, Argentina’s foreign exchange program for the crop has brought them to 74.2 per cent sold. That’s now only 2.7 points behind this time last year.
CORN futures were higher on Thursday, getting support from soybeans.
U.S. corn export sales were 691,600 tonnes and within trade guesses.
The carryout for U.S. corn is projected to nudge up by a small amount, while the global corn carryout is to change very little.
CONAB placed Brazil corn production for 2022/23 at 125.83 million tonnes, down 0.45 per cent from November.
ANEC projected Brazil’s corn exports for 2022 to be 42.6 million tonnes, soaring 106.8 per cent from 2021.
Mexico announced it’s willing to push back its ban on genetically modified corn from 2024 to 2025.
WHEAT futures were mixed on Thursday, with gains in Minneapolis and losses in Chicago and Kansas City.
Export sales of U.S. wheat totaled 189,900 tonnes and within market expectations.
The 2022/23 carryovers for U.S. and global wheat are projected to increase in tomorrow’s S&D report.
Ukraine reported its November wheat exports were 1.6 million tonnes, compared to two million in October.
