By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – After a rocky start to the daily session Intercontinental Exchange canola futures closed higher on Thursday.
Support for canola came from upticks in Chicago soybeans and soymeal, along with those in European rapeseed and Malaysian palm oil. Small losses in Chicago soyoil tempered further increases. Global crude oil prices turned around to rise higher, which lent support to vegetable oils.
An analyst said pressure from the influx of Australian canola on the world market was beginning to wane and noted that the massive South American soybean harvest has been factored into oilseed prices.
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He stated canola was to remain in “sideways, featureless trade” until the United States Department of Agriculture releases its 2024 crop outlook next month.
The Canadian dollar was slightly higher at mid-afternoon Thursday with the loonie at 74.05 U.S. cents compared to Wednesday’s close of 73.95.
There were 28,663 contracts traded on Thursday, which compares with Wednesday when 42,435 contracts changed hands. Spreading accounted for 17,812 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Mar 631.80 up 5.10 May 638.60 up 5.10 Jul 643.20 up 4.30 Nov 640.70 up 3.20
SOYBEAN futures at the Chicago Board of Trade were higher on Thursday, after world crude oil prices turned around to push upward.
Due to Monday’s holiday, the United States Department of Agriculture postponed its weekly export sales report to Friday. The trade called for 400,000 to 900,000 tonnes of old crop soybeans and less than 50,000 tonnes of new crop. Soymeal was pegged at 100,000 to 400,000 tonnes of old crop and soyoil from reductions of 10,000 tonnes to sales of 10,000.
Snow has been forecast to fall today on parts of South Dakota, Nebraska, Iowa and Illinois. Tomorrow, the system will make its way across the Eastern Corn Belt.
The Panama Canal Authority said reduced freshwater levels in the system due to drought is set to cost them US$500 million to US$700 million this year in reduced shipping. That’s up from the previous estimate of US$200 million.
CORN futures were slightly higher on Thursday, as spillover from soybeans and wheat outweighed a modest ethanol report.
The U.S. Energy Information Administration said ethanol production for the week ended Jan. 12 averaged a little more than 1.05 million barrels per day, down slightly from the previous week. Ethanol stocks added 1.32 million barrels, raising the stockpile to a record 25.7 million.
Market expectations called for U.S. corn export sales of 500,000 to 1.2 million tonnes of old crop with new crop to be less than 100,000 tonnes.
China reported its December corn imports totaled 4.95 million tonnes, which set a new record for the month. On the year, China imported 22.18 million tonnes of corn, up 12.3 per cent from 2022.
India’s corn exports dropped to 30,000 tonnes in December, tumbling from the usual monthly average of 250,000 to 300,000 tonnes, according to reports out of the country. Domestic demand for corn has surged since the Indian government raised the procurement price by 8.8 per cent.
WHEAT futures were higher on Thursday, adding on to yesterday’s small gains.
Trade guesses for U.S. wheat export sales are 150,000 to 500,000 tonnes.
The Ukrainian ambassador to Turkey commented “certain negotiations” were underway to restart the United Nations’ grain export initiative.
Egypt bought 360,000 tonnes of wheat, Japan purchased 87,641 tonnes, and Lebanon acquired 72,000 tonnes.
StoneX cut its forecast on the Brazil wheat harvest to 8.25 million tonnes and raised its estimate on the country’s wheat imports to 7.05 million.
