By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 31 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures lost their gains in the final hour of trading on Wednesday to finish a pinch lower.
Support evaporated from Chicago soyoil as it to reversed course to incur losses. Pressure also came from declines in soybeans and soymeal. European rapeseed finished higher and increased global crude oil prices lent support to the vegetable oils.
As the Prairie harvest picks up the pace, harvest pressure is being felt in the canola market. Saskatchewan reported its provincewide harvest is one third complete overall with canola at 10 per cent finished.
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Farmer selling was also increasing as producers turn to canola’s attractive prices for cash.
The Canadian dollar was slightly higher at mid-afternoon Thursday as the loonie climbed to 73.98 U.S. cents, compared to Wednesday’s close of 73.88.
There were 21,948 contracts traded on Thursday, which compares with Wednesday when 25,917 contracts changed hands. Spreading accounted for 10,660 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 808.70 dn 0.50 Jan 813.90 dn 0.90 Mar 815.50 dn 1.20 May 812.60 dn 1.50
SOYBEAN futures at the Chicago Board of Trade were lower on Thursday, despite hot and dry weather continuing across much of the United States Corn Belt.
The U.S. Department of Agriculture announced a private sale of 132,000 tonnes of 2023/24 soybeans to China. This is now the sixth-straight day of large sales to either China or unknown destinations.
The USDA issued its export sales report and for the week ended Aug. 24 sales of 2022/23 soybeans incurred a net reduction of 50,700 tonnes, while new crop sales exceeded 1.12 million tonnes. Soymeal had old crop sales of 61,700 tonnes plus new crop sales of 324,900 tonnes. Soyoil came in at 1,500 tonnes.
Thursday marked the end of the marketing year for U.S. soybeans and corn. The old crop year for soymeal and soyoil carries on to Sept. 30.
Thursday is also the first notice day for all September futures.
With the Labour Day long weekend, CBOT will be closed from end of trading on Friday until the overnight session begins on Monday evening.
CORN futures were lower on Thursday, in sympathy with soybeans.
The USDA old crop corn export sales were 71,700 tonnes and those for new crop totaled 991,800 tonnes.
Earlier than expected heavy rains in central Brazil have delayed the completion of the country’s second corn harvest.
WHEAT futures were pulled down on Thursday, due to harvest pressure on Minneapolis wheat.
U.S. wheat export sales for 2023/24 amounted to 329,100 tonnes along with 15,000 tonnes of 2024/25 wheat.
Talks between Russia and Turkey on another Black Sea grain deal are set to begin Sept. 4.
Following India’s driest August on record, the country is forecast to receive average rainfall in September. The lack of rain from India’s monsoons curtailed production, including wheat.
France reported 91 per cent of its soft wheat harvest meets milling protein requirements. While that’s down from 93 per cent earlier, it’s still above the five-year average of 87 per cent.
Egypt, the world’s largest importer of wheat, purchased 240,000 tonnes of wheat split evenly between France and Romania.
