By Glen Hallick, MarketsFarm
WINNIPEG, March 27 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures started the new week the same way it ended the previous one – with gains as the funds continued to scamper out of their near record short positions.
Additional support came from good gains in the Chicago soy complex, European rapeseed and Malaysian palm oil. A surge in global crude oil prices spilled over into the vegetable oils.
Statistics Canada (StatCan) reported the February crush included 812,001 tonnes of canola, up 29.1 per cent from February 2022. The federal agency also reported canola deliveries in February were 1.49 million tonnes, jumping 46.1 per cent from a year ago.
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Canola crush margins were again on the rise, further underpinning values.
The Canadian dollar was stronger at mid-afternoon Monday with the loonie at 73.25 U.S. cents, compared to Friday’s close of 72.66.
There were 38,537 contracts traded on Monday, which compares with Friday when 41,203 contracts changed hands. Spreading accounted for 22,110 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola May 753.20 up 9.80 Jul 742.10 up 14.70 Nov 716.50 up 12.40 Jan 719.80 up 11.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Monday, due to spillover from sharp increases in crude oil prices.
The United States Department of Agriculture (USDA) issued its exports inspections report for the week ended March 23, showing 888,707 tonnes of soybeans were outbound, up 23.5 per cent from the previous week. The year-to-date reached 44.953 million tonnes, compared to 43.468 million a year ago.
The USDA is scheduled to release its prospective plantings report on Friday. Market expectations range from 87.4 million to 89.6 million acres, compared to 87.5 million planted in 2021/22.
As well, the department will issue its quarterly grain stocks report on Friday. Trade guesses are from 1.60 billion to 1.91 billion bushels versus last year’s 1.93 billion.
Patria Agronegocios pegged the Brazil soybean harvest at 71 per cent complete, six points back of this time last year.
WHEAT futures were stronger on Monday, as tensions rise in Europe.
A report said Russian President Vladimir Putin ordered tactical nuclear weapons to be relocated in neighbouring Belarus. Ukraine, the U.S. and the West have condemned the move.
Export inspections of U.S. wheat were 392,484 tonnes, slightly higher than last week’s 375,271. The year-to-date totaled 16.680 million tonnes versus 16.900 million this time last year.
The trade projected wheat plantings to be 45.7 million to 50 million acres, with 45.7 million seeded last year. Slightly less than 11 million acres are expected to be spring wheat.
U.S. wheat stocks have been projected to be 875 million to 1.02 billion bushels.
Putin and Turkish President Recep Tayyip Erdogan spoke over the weekend, with Erdogan apparently sympathetic to Putin’s demands that sanctions against Russia be lifted in order to fulfill the Black Sea export agreement.
Ukraine placed its 2023 grain harvest at approximately 45 million tonnes with domestic use at five million.
CORN futures were higher on Monday, catching spillover from soybeans and wheat, but hampered by poor export inspections.
The USDA said corn export inspections tumbled 44 per cent from last week at 666,325 tonnes. The year-to-date continued to be far behind last year’s pace at 18.194 million tonnes to 29.045 million.
The department also reported a private sale of 112,800 tonnes of current crop corn to unknown destinations.
Prospective plantings are pegged at 87.7 million to 90.9 million acres compared to 88.6 million a year ago.
Quarterly corn stocks are set to be between 7.24 billion to 7.83 billion bushels. The same quarter last year was 7.758 billion.
