By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 12 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were stronger on Thursday reaping support from the Chicago Board of Trade (CBOT) after the United States Department of Agriculture issued several reports.
Those reports had a bullish effect on the soy complex, as well as other grains at CBOT. Additional support for canola came from increases in European rapeseed, while Malaysian palm oil was narrowly mixed. Although gains in global crude oil prices were fading somewhat, they were still underpinning vegetable oils.
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While canola turned around after three days of losses, the oilseed remained firmly rangebound.
The Canadian dollar was higher at mid-afternoon Thursday, with the loonie at 74.86 U.S. cents compared to Wednesday’s close of 74.49.
There were 42,933 contracts traded on Thursday, which compares with Wednesday when 37,089 contracts changed hands. Spreading accounted for 30,786 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Mar 842.40 up 10.60 May 841.00 up 13.00 Jul 842.00 up 13.10 Nov 815.70 up 12.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, following numerous reports issued by the United States Department of Agriculture (USDA).
In the final crop production report for 2022/23, the USDA placed the soybean harvest at 4.28 billion bushels, down 70 million from December’s report. That’s based on 86.3 million combined acres with an average yield of 49.5 bushels per acre.
In the USDA supply and demand estimates, the soybean carryout was down 4.5 per cent from the December report at 210 million bushels.
For grain stocks as of Dec. 1, the department came in at 3.02 billion bushels of soybeans, down four per cent from the same quarter a year ago.
The USDA issued its export sales report and for the week ended Jan. 5 old crop soybeans came to 717,400 tonnes plus 66,000 tonnes of new crop. Soymeal export sales dropped to a marketing year low of 3,300 tonnes and those for soyoil were 600 tonnes.
CONAB cut its forecast on soybean production in Brazil by 765,000 tonnes at 152.7 million, citing dry conditions in southern parts of the country. The USDA came in at 153.0 million tonnes.
The Rosario Grain Exchange slashed its call on 2022/23 soybean production in Argentina by 24.5 per cent at 37 million tonnes due to severe drought, while the USDA was more optimistic at 45.5 million.
The International Grains Council (IGC) published its monthly S&D report showing a 0.8 per cent dip in 2022/23 global soybean production at 384.50 million tonnes, while the USDA went with 388.01 million.
CORN futures were stronger on Thursday, in sympathy with the other commodities.
The USDA crop production report said 13.73 billion bushels of corn were combined in 2022/23, on 79.2 million acres with an average yield of 173.3 bu./ac.
The USDA placed 2022/23 corn ending stocks at 1.42 billion bushels, slipping 1.2 per cent from the December report.
Quarterly stocks had U.S. corn at 10.8 billion bushels, for a drop of seven per cent from the same time last year.
U.S. corn export sales tallied 255,700 tonnes of old crop as well as 22,400 tonnes of new crop.
CONAB reduced Brazil corn production by 765,000 tonnes as well at 125.1 million, while the USDA came in at 125.0 million.
Rosario chopped 18.2 per cent from its projection on Argentina corn production at 45.0 million tonnes, and the USDA was higher at 52.0 million.
The IGC reduced world corn output for the 2022/23 by 0.4 per cent at 1.16 billion tonnes and lowered ending stocks 1.2 per cent at 254.30 million tonnes. The USDA agreed with the production number but placed the carryover at 296.42 million tonnes.
WHEAT futures were stronger on Thursday, with the increases concentrated on Kansas City and Minneapolis.
The USDA pegged 2023/24 winter wheat acres at 36.95 million, well above trade guesses and last year’s plantings.
The department estimated 2022/23 wheat production at 1.65 billion bushels on 35.5 million acres with an average yield of 46.5 bu./ac.
Quarterly wheat stocks were pegged at 1.28 billion bushels, down seven per cent from a year ago
U.S. wheat export sales were 90,800 tonnes of old crop and 1,500 tonnes of new crop.
Rosario forecast the 2023 wheat crop in Argentina will plummet 50 per cent at 11.5 million tonnes.
The IGC increased world wheat production for 2022/23 by 0.6 per cent at 795.60 million tonnes. Meanwhile the USDA estimated 781.31 million tonnes. Ending stocks were trimmed by one million tonnes at 280.60 million and the USDA said 268.39 million.
