By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 12 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) made sizeable gains on Monday, due to a surge in the Chicago soy complex.
The United States Department of Agriculture (USDA) issued its monthly supply and demand estimates, showing reductions for soybean yields and ending stocks.
There’s also some positioning in canola ahead of Wednesday’s updated production report from Statistics Canada. A trader said production of the Canadian oilseed is likely to top out at 18.5 million to 19 million tonnes, based on the reports he’s heard so far about the Prairie harvest.
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The trader noted that despite today’s price increases, canola crush margins remained “obscene” and are “very disadvantageous” to farmers.
Additional support for canola came from modest increases in European rapeseed and Malaysian palm oil. Small gains in global crude oil prices lent some spillover to vegetable oils.
The Canadian dollar was higher at mid-afternoon as the loonie rising to 77.00 U.S. cents, compared to Friday’s close 76.72.
There were 38,406 contracts traded on Monday, which compares with Friday when 22,032 contracts changed hands. Spreading accounted for 20,844 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 799.70 up 28.50
Jan 807.30 up 28.00
Mar 814.10 up 27.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were as lot stronger on Monday, following the release of the September supply and demand estimates from the United States Department of Agriculture (USDA).
The USDA projected U.S. yields to drop to 50.5 bushels per acre from its August call of 51.9. Soybean ending stocks for 2022/23 contracted almost 18.4 per cent at 200 million bushels.
Also, the USDA reported export inspections of soybeans for the week ended Sept. 8 at 329,225 tonnes, down 34.2 per cent from the previous week.
Reports on Monday indicated that eight of the 12 railway worker unions in the U.S. set to go on strike as of Sept. 16 have reached a tentative settlement.
Argentine farmers are said to have now sold four million tonnes of soybeans under the country’s new ‘soybean exchange’ program.
CORN futures were stronger on Monday, pulled up by spillover from soybeans and the USDA report.
The USDA lowered its call on U.S. corn yields to 172.5 bu./ac., chopping off 2.9 bushels from last month’s estimate. At 1.22 billion bushels, 2022/23 ending stocks fall 12.2 per cent from last month.
Export inspections of U.S. corn were 446,620 tonnes, falling 16 per cent from a week ago.
Reports out of Ukraine indicated that 30 per cent fewer winter grains could be planted this year due to high input costs and the ongoing war.
Meanwhile, France and Romania are said to be working with Ukraine on a plan to boost the latter’s grain exports. There’s strong speculation that Russia won’t extend the current agreement to allow further grain exports out of Ukraine’s Black Sea ports when it expires next month. Other reports suggested Russia could resume blocking Ukraine’s ports before the end of the agreement.
WHEAT futures were lower on Monday, as the USDA report held firm on most of its numbers.
The USDA maintained wheat yields at 47.5 bu./ac., just as the planting of winter wheat gets underway and the harvest of spring wheat is almost finished. Ending stocks held at 610 million bushels.
Export inspections of U.S. wheat rose 36.8 per cent at 736,515 tonnes. At nearly 6.4 million tonnes, the year-to-date export inspections were almost 11 per cent behind those this time last year.
Ahead of the weekly crop progress report, the trade placed the U.S. spring wheat harvest at 90 to 95 per cent complete.
