By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm –Intercontinental Exchange canola futures dropped on Monday, hitting new contract lows due to significant losses in Chicago soyoil.
Declines in European rapeseed, Malaysian palm oil and Chicago soybeans put additional pressure on canola. Lower crude oil prices weighed on vegetable oils.
An analyst warned tough times were ahead for canola as the Brazil soybean harvest ramped up. He noted those soybeans were cheaper on the world market than those from the United States.
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The U.S. Commodity Futures Trading Commission reports the net managed money short position in canola was 131,354 contracts as of Jan. 23, down about 1,500 from the previous week.
The Canadian dollar was higher at mid-afternoon Monday with the loonie at 74.49 U.S. cents compared to Friday’s close of 74.35.
There were 47,730 contracts traded on Monday, compared with Friday when 37,230 contracts changed hands. Spreading accounted for 33,436 contracts traded.
Prices are in Canadian dollars per metric tonne:
                       Price    Change Canola         Mar    608.70   dn 15.50                May    614.10   dn 15.30                Jul    617.20   dn 15.80                Nov    616.40   dn 14.90
SOYBEAN futures at the Chicago Board of Trade were lower on Monday, due to pressure from the advancing Brazil soybean harvest.
AgRural estimated the Brazil soybean harvest at more than 11 per cent complete, and at least double last year’s harvest. Safras and Mercado said the harvest was nine per cent done versus less than five per cent a year ago.
The United States Department of Agriculture reported soybean export inspections for the week ended Jan. 25 at 889,717 tonnes, down from the previous week’s 1.18 million tonnes. The year-to-date reached 27.67 million tonnes, far behind the 36.20 million a year ago.
The six-to-10-day weather outlook for Brazil called for wetter conditions in the north and a drier central region.
CORN futures were lower on Monday, as the trade sees a large harvest to come out of South America.
U.S. corn export inspections tallied 901,958 tonnes, rising from last week’s 746,933. At 15.64 million tonnes, the year-to-date kept its healthy lead over the 12.06 million this time last year.
AgRural placed the planting of Brazil’s second corn crop at 11 per cent finished, and double last year’s progress.
Safras and Mercado said the harvest of Brazil’s first corn crop was over 15 per cent finished, three points more than last year.
WHEAT futures were lower on Monday, due to poor export demand.
The USDA reported wheat inspections of 264,666 tonnes, slipping from the 315,186 the previous week. At 10.99 million tonnes, the year-to-date stayed well back of last year’s pace of 13.22 million.
A ‘cold snap’ for India could help boost its wheat output to more than 114 million tonnes. However, a sudden return to hot conditions would stymie production.
SovEcon upped its call on the coming Russia wheat crop by 900,000 tonnes at 92.2 million. However, that would be 600,000 tonnes less than this year’s harvest.
Farmers in France continued to rally against proposed tax changes being implemented by the Marcon government.
China approved wheat imports from Argentina.
Egypt announced it plans to import seven million tonnes of wheat in 2024. The country’s wheat reserves were said to be enough for just over four months.
Jordan tendered for 100,000 tonnes of milling wheat. The Philippines said it wants to buy 40,000 to 50,000 tonnes of feed wheat.
