North American Grain and Oilseed Review: Canola finishes day on higher note

By Glen Hallick, MarketsFarm

WINNIPEG, Jan. 14 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Thursday, on a turnaround from earlier losses. Those were followed by gains that hit new contract highs, before prices settling off of those levels

There was support from strong gains in the Chicago soy complex, especially soyoil. Declines in Malaysian palm oil and European rapeseed somewhat weighed on values.

Concerns of low canola ending stocks remained in the background.

The Canadian dollar was stronger in moving above 79 U.S. cents. At mid-afternoon the loonie was at 79.13 U.S. cents, compared to Wednesday’s close of 78.68.

There were 35,221 contracts traded on Thursday, which compares with Wednesday when 26,168 contracts changed hands. Spreading accounted for 18,148 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Mar 687.70 up 3.00
May 672.30 up 3.90
Jul 657.00 up 3.50
Nov 555.70 up 2.90

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, due to market focus on South America.

Dry conditions remain a concern for Argentina while much of Brazil has received rain.

Just as the Brazil soybean harvest is beginning, Safras reported that 58 per cent of the country’s soybean production, estimated at 133 million tonnes, has already been sold. That’s up from 43 per cent this time last year, as well as the normal sales pace of 39 per cent.

The Rosario Grain Exchange projected Argentina’s soybean crop to come in at 47 million tonnes.

Refinitiv estimated Argentina’s soyoil exports were 72,000 tonnes in December.

The United States Department of Agriculture reported export sales of old crop soybeans at 908,000 tonnes and 326,000 tonnes of new crop soybeans. Export sales of old crop soymeal hit a marketing year high of 337,400 tonnes, and there were 60,000 tonnes of new crop sales. Soyoil came in at 11,100 tonnes.

Ahead of the December report from the National Oilseed Processors Association, the average trade prediction puts the soybean crush at about 185.18 million bushels. Soyoil stocks are expected to be approximately 1.71 billion pounds.

CORN futures were higher on Thursday, due to improved export sales and spillover from the soy complex.

The USDA said corn export sales were up 92 per cent from the previous week at nearly 1.44 million tonnes of old crop.

There are expectations that most of the 10 million prevent plant acres in the U.S. will be seeded in 2021.

Argentina ended its corn export limit of 1.2 million bushels per day. The move came after farmers protested the limit, which was to have been in place for two months in order to lower domestic food prices.

Rosario pegged Argentina’s corn crop to produce 46 million tonnes.

WHEAT futures were stronger on Thursday, getting support from soybeans and corn.

Export sales of wheat came in at 221,900 tonnes of old crop and 10,100 tonnes of new crop.

Rosario projected Argentina’s wheat harvest to be 17 million tonnes.

Japan purchased 117,000 tonnes of wheat from the U.S. (51,000 tonnes), Canada (43,000 tonnes) and Australia (24,000 tonnes).

Futures Prices as of January 14, 2021

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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