By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 9 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures weaker on Monday, getting pressure from losses in most vegetable oils.
Chicago soybeans and soymeal, as well as European rapeseed and Malaysian palm oil were to the downside today. There were small upticks in Chicago soyoil. Increases in global crude oil prices tempered further losses in veg oils.
A trader noted that movement in canola is very likely to remain rangebound for the time being. The poor condition of Argentina’s soybean crop is to continue having an effect on veg oils, but the trader stressed that’s having more sway on the market than it should.
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Canola crush margins remained very wide, helping to underpin the crop’s values.
The Canadian dollar was stronger at mid-afternoon Monday, which weighed on canola values. The loonie climbed to 74.78 U.S. cents, compared to Friday’s close of 74.15.
There were 25,234 contracts traded on Monday, which compares with Friday when 28,313 contracts changed hands. Spreading accounted for 11,456 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Mar 858.60 dn 10.30 May 855.40 dn 10.90 Jul 855.80 dn 10.60 Nov 823.60 dn 12.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Monday, giving up small gains when higher crude oil prices faded.
The United States Department of Agriculture (USDA) issued its export inspections report and for the week ended Jan. 5 soybeans came to 1.44 million tonnes compared to 1.47 million the previous week. The year-to-date reached 30.08 million tonnes, which is 1.7 million behind the same time last year.
Ahead of Thursday’s quarterly stocks report from the USDA, a Reuters survey placed soybean stocks as of Dec. 1 at 3.13 billion bushels, down 0.6 per cent from those a year ago.
The Rosario Grain Exchange estimated that more than 18 per cent of Argentina’s 42.3 million acres of soybeans are in poor to very poor condition. Rain is expected to fall in Argentina on Wednesday and Thursday.
Safras & Mercado reported that 28.5 per cent of Brazil’s 2022/23 soybean crop has been sold. That’s down from 36.5 per cent of the 2021/22 crop a year ago. The consultancy also estimated the total soybean harvest for 2022/23 to be 153.3 million tonnes.
Meanwhile, AgRural placed the Brazil soybean harvest at 0.04 per cent complete as of Jan. 5, double from the same time last year. AgRural noted disruptions to this year’s crop were caused by wet conditions in some states, while planting in the country’s far south still has to wrap up due to dry conditions. The consultancy’s current forecast is for a soybean harvest of 153.6 million tonnes. That said, political unrest in Brazil that greatly intensified over the weekend could lead to future problems.
WHEAT futures were mixed on Monday, with losses in Chicago and Kansas City but Minneapolis nudging up.
The U.S. weather outlook projected scattered rain and snow showers for the Plains and Midwest, with the latter region to get heavier precipitation by the end of this week.
U.S. wheat export inspections improved, jumping 135 per cent at 201,673 tonnes. The year-to-date hit 12.09 million tonnes, but 2.7 per cent behind last year.
The Reuters survey projected average U.S wheat stocks at 1.34 billion bushels compared to 1.38 billion the same time last year.
Ukraine reported its 2022/23 grain exports through the Black Sea reached 23.6 million tonnes of which 36.4 per cent was wheat.
CORN futures were slightly lower on Monday, taking their cue from declines in soybeans and wheat.
The USDA said corn export inspections were 397,585 tonnes, dropping almost 42 per cent from the previous week. At just short of 10 million tonnes, the year-to-date remained well behind last year’s 14.09 million.
The Reuters survey placed average U.S. corn stocks at 11.15 billion bushels, down 4.2 per cent from the same time last year.
