By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures increased on Thursday, but with the upfront contracts fading from earlier gains.
Increases in Chicago soybeans and soymeal spurred the rise in canola. Additional support came from upticks in Malaysian palm oil and most European rapeseed contracts, while Chicago soyoil slipped back. Modest increases in crude oil lent support to the vegetable oils.
A trader said canola will continue to follow the Chicago soy complex until there are firm estimates for yields on the Prairies. At that time, the trade will decide to push canola higher or pull it lower.
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Canola’s November contract remained above its major moving averages. However, canola crush margins stepped back with the November positions now less than C$90 per tonne above the futures.
Saskatchewan issued its crop report, noting that the Prairie heatwave will very likely cut into yields for canola and other crops. As of July 22, the province’s canola rated 68 per cent good to excellent.
The Canadian dollar was lower mid-afternoon Thursday with the loonie at 72.37 U.S. cents compared to Wednesday’s close of 72.50.
There were 52,541 contracts traded on Thursday, compared to the 56,065 contracts that changed hands on Wednesday. Spreading accounted for 18,412 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 671.70 up 1.10 Jan 677.50 up 2.40 Mar 681.70 up 3.80 May 681.90 up 5.90
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, due to a rally in soymeal following good export sales of the latter.
The United States Department of Agriculture issued its export sale report for the week ended July 18, with old crop soybeans below trade expectations at 88,600 tonnes. New crop soybean sales of 829,700 tonnes come in near the high end of market guesses.
U.S. soymeal export sales tallied 258,100 tonnes of old crop and 520,900 tonnes of new crop, with both meeting trade projections. Those for soyoil registered 6,900 tonnes of old crop and within trade predictions while new crop net reductions of 3,100 tonnes fall short of guesses.
The USDA announced a private sale for 264,000 tonnes of new crop soybeans to unknown destinations.
A report said Malaysian palm oil exports from July 1 to 25 were up 31 per cent compared to those from June 1 to 25.
CORN futures bumped up on Thursday, getting enough support from soybeans to fend off pressure from losses in wheat.
The U.S. Eastern Corn Belt is forecast to get rain while the western half to remain dry.
The USDA said corn export sales of 331,400 tonnes of old crop are within market expectations while new crop sales of 745,200 tonnes exceeded projections.
Consultancy ASAP Agri chopped five million tonnes from its call on Ukrainian corn production for 2024/25 at 24.1 million.
The USDA attaché in Pretoria placed South African corn output for 2023/24 at 13.98 million tonnes, necessitating the import of 150,000 tonnes to meet domestic and export demand. The attaché placed 2024/25 corn production at 16.50 million tonnes with no imports.
WHEAT futures were lower on Thursday, due to generally good conditions for U.S. wheat fields.
U.S. wheat export sales of 309,300 tonnes were slightly above the low end of trade guesses.
The Wheat Quality Council’s spring wheat tour placed Day Two yields at 53.7 bushels per acre. The tour finishes today in Fargo.
