By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 10 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures remained lower on Monday, but away from double-digit declines earlier in the session.
Pressure came from significant declines in the Chicago soy complex, as well as European rapeseed. Malaysian palm was down in its front month, but had small gains for the rest of its positions.
Concerns over continuing dryness in South American helped to drive down edible oils. A downturn in global crude oil prices also weighed on values.
Price rationing caused by tight supplies underpinned canola.
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At mid-afternoon the Canadian dollar was slightly lower with the loonie was at 78.85 U.S. cents, compared to Friday’s close of 78.95.
There were 13,717 contracts traded on Monday, which compares with Friday when 20,913 contracts changed hands. Spreading accounted for 3,878 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Mar 1,030.60 dn 4.50
May 1,006.90 dn 6.40
Jul 956.40 dn 6.30
Nov 788.40 dn 8.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) saw a sell-off on Monday, due to high inflation in the United States and concerns about future interest rate movements by the U.S. Federal Reserve.
The U.S. Department of Agriculture (USDA) issued its weekly export inspections report, showing outbound movements of soybeans of 905,149 tonnes for the week ended Jan. 6. That’s down 43.9 per cent from the previous week. The year-to-date exports were nearly 31.65 million tonnes, down 23.1 per cent from the same time last year.
The USDA is scheduled to release its monthly supply and demand estimates on Wednesday, which includes its final crop production numbers for 2021/22. Also, the department publishes its quarterly grain stocks report and its winter wheat seedings report that day.
The soybean harvest has begun in the Brazilian states of Parana and Mato Grasso, according to AgRural. Yields in Parana were reported to be well below expectations due to dry conditions. Those in Mato Grasso are good, but threatened by wet conditions. CONAB is scheduled to release its monthly supply and demand report tomorrow. Rain is in the eight to 10-day forecast for Brazil and Argentina.
CORN futures were lower on Monday, in sympathy with soybeans.
The USDA said corn export inspections jumped 34.6 per cent on the week at around 1.02 million tonnes. The year-to-date has reached 14.08 million tonnes, about 15 per cent lower from a year ago.
The USDA announced a sale of 132,000 tonnes of corn to Mexico, of which 77,000 tonnes is to be delivered during the current marketing year and the balance in 2022/23.
Ukraine reported it has exported 11.8 million tonnes of corn so far in 2021/22, with total projections for the year at 24.5 million. The country exported a total of 23.1 million tonnes in 2020/21.
WHEAT futures were mixed on Monday, with gains in the winter wheats and losses in the spring wheat.
Wheat export inspections were relatively stable at 233,159 tonnes, up 1.2 per cent from the previous week. At 12.43 million tonnes, the year-to-date was down 18.7 per cent from this time last year.
Ukraine said it has exported about 16.1 million tonnes of wheat and 5.3 million of barley at this point. Expectations were to move 24.5 million tonnes of wheat and 5.2 million of barley, compared to last year’s 16.6 million of wheat and 4.2 million of barley.
Fertilizer-producer Yara announced it will cease buying potash from Belarus as of April 1 due to international sanctions against the country.
The International Grains Council (IGC) is set to release its first monthly report of 2022 on Thursday. Of note, the IGC will include pulses for the first time.
