By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 7 (MarketsFarm) – Intercontinental Exchange canola futures turned around on Thursday to reclaim some losses it suffered this week.
A trader commented canola became oversold after a long liquidation. He said the Canadian oilseed was aided by spillover from sharp upticks in Chicago soyoil.
Additional support for canola came from gains in Chicago soybeans, European rapeseed, and Malaysian palm oil. A little bit of pressure came from small losses in Chicago soymeal. Global crude oil prices lost their earlier gains and were now virtually unchanged.
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The Canadian dollar was slightly lower at mid-afternoon Thursday with the loonie at 73.58 U.S. cents compared to Wednesday’s close of 73.67.
There were 51,615 contracts traded on Thursday, which compares with Wednesday when 52,974 contracts changed hands. Spreading accounted for 37,426 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jan 666.60 up 16.70 Mar 675.20 up 15.90 May 682.80 up 15.10 Jul 688.30 up 13.80
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, due to higher than expected export sales.
The United States Department of Agriculture announced a private sale for 121,000 tonnes of old crop soybeans to unknown destinations.
The USDA reported export sales of soybeans for the week ended Nov. 30, came to 1.52 million tonnes of old crop, well exceeding market expectations. Soymeal export sales were 110,000 tonnes of old crop plus 500 tonnes of new crop, while soyoil incurred a net sales reduction of 1,600 tonnes. The products were within trade guesses.
The department is set to publish its December supply and demand estimates tomorrow at 11 am Central. The average trade guess soybean ending stocks for 2023/24 at 243 million bushels down slightly from November.
The USDA attaché in Jakarta projected Indonesian palm oil production for this year at 45.8 million tonnes, under the department’s call for 47 million tonnes.
The USDA attaché in New Delhi estimated India’s soybean production for 2023/24 at 12.8 million tonnes, versus the official projection for 13 million tonnes. Also, India’s 2023/24 palm oil imports would be 11 million tonnes compared to the USDA’s call for 9.3 million.
CONAB reduced its outlook on Brazil’s incoming soybean crop from 162.4 million tonnes to 160.2 million. Severe dry conditions in the country’s north and excessively wet conditions in the south have delayed soybean planting.
China reported its November soybean imports tallied 7.9 million tonnes, up nearly eight percent from the previous November.
Algeria said it’s seeking 35,000 tonnes of soymeal.
CORN futures were higher on Thursday, benefitting from gains in soybeans and wheat, but tempered by a lack of direction in crude oil.
The USDA said corn export sales were nearly 1.29 million tonnes of old crop and 22,900 of new crop, and both were within trade expectations.
Ahead of tomorrow’s S/D report, the average trade guess called for U.S. 2023/24 corn ending stocks of 2.15 billion bushels, very close to last month’s number.
The USDA attaché in Madrid projected European Union corn production this year to reach 60.2 million tonnes, slightly higher than the department’s official estimate.
Algeria issued a tender for 120,000 tonnes of feed corn.
WHEAT futures were higher on Thursday, riding a wave of export sales this week to China.
A Russian drone attack damaged a grain elevator along the Danube River in Ukraine, killing a truck driver.
U.S. wheat export sales amounted to 356,400 tonnes old crop and were within trade projections. Meanwhile new crop wheat had net reductions of 9,500 tonnes and short of market guesses.
The trade predicted the 2023/24 U.S. wheat carryover to remain at 684 million bushels.
The USDA’s Madrid desk forecast 2023/24 EU wheat output at 134.44 million tonnes, a pinch higher than the department’s current estimate.
Pakistan issued a tender for 110,000 tonnes of wheat, while Bangladesh and Lebanon are looking to acquire 50,000 and 30,000 tonnes of milling wheat respectively.
