By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 17 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures closed higher on Thursday, but gains faded during the final hour of trading. The nearby November failed to hang on to enough support to remain above the psychological level of C$800 per tonne.
Support for the Canadian oilseed came from strong upticks in Chicago soyoil. A trader said there’s little in canola itself to push its prices higher and it was lagging behind soyoil.
Additional support came from increases in Chicago soybeans, European rapeseed and Malaysian palm oil. Pressure came from losses in Chicago soymeal. Although global crude oil prices were higher, they also faded, but still spilled over into the vegetable oils.
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Saskatchewan reported its provincewide harvest was at nine per cent complete, with the winter cereals and pulses leading the way. The canola registered at one per cent finished.
The International Grain Council reduced its projection on Canadian soybean production from 6.5 million tonnes in July to 6.1 million this month. The carryover was dropped from June’s 700,000 tonnes to now 300,000.
The Canadian dollar was lower at mid-afternoon Thursday, as the loonie retreated to 73.82 U.S. cents, compared to Wednesday’s close of 73.98.
There were 25,575 contracts traded on Thursday, which compares with Wednesday when 24,611 contracts changed hands. Spreading accounted for 12,624 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 795.20 up 4.50 Jan 801.10 up 4.50 Mar 802.90 up 3.50 May 801.70 up 3.00
SOYBEAN futures at the Chicago Board of Trade were higher on Thursday, continuing to glean support from the rally in soyoil.
The United States Department of Agriculture reports export sales for the week ended Aug. 10 comprised of 93,600 tonnes of old crop and almost 1.41 million tonnes of new crop. While the old crop sales were within market expectations, the new crop sales exceeded trade guesses.
Soymeal export sales came in at 126,400 tonnes of old crop and 220,500 of new crop, while soyoil tallied 700 tonnes. All sales fell within trade expectations.
The International Grains Council trimmed its call on 2023/24 global soybean production to 398 million tonnes from 400 million in July. However the carryover was bumped up from 63.4 million tonnes to now 63.9 million.
A report said a Brazil company is one of the world’s first to produce hydrous ethanol from soy molasses.
CORN futures were higher on Thursday, taking on spillover from soybeans.
U.S. corn export sales included 233,500 tonnes of old crop and 704,700 tonnes of new crop, and both were within trade guesses.
The U.S. said it wants to take its dispute with Mexico over the latter’s ban on GMO corn imports to a dispute resolution panel. The U.S. has alleged Mexico is in violation of the free trade agreement.
The IGC placed world corn production at 1.22 billion tonnes, adding 900,000 to their July projection. The carryover was upped from last month’s 282.1 million tonnes to 287.7 million.
APK-Inform estimated Ukraine’s total grain production for 2023/24 at 53.1 million tonnes, up from its previous call of 48.9 million tonnes. Of that, corn output is to come in at 25.5 million tonnes with 18 million for exports.
WHEAT futures were lower on Thursday, due to favourable weather forecasts and from a little bit of harvest pressure.
U.S. wheat export sales were 359,500 tonnes, coming within trade expectations.
The IGC pegged world wheat production at 784.1 million tonnes, virtually unchanged from its July estimate. Global wheat ending stocks were cut from 263.2 million tonnes down to 260.9 million.
APK-Inform placed Ukraine’s wheat production for 2023/24 at 20.6 million tonnes with 12 million to be exported.
Unconfirmed reports said India is seeking to import eight million to nine million tonnes of wheat.
