By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 26 (MarketsFarm) – Intercontinental Exchange canola futures dropped back on Thursday, pulled down by weakness in Chicago Board of Trade soyoil.
Canola started the session on a higher note, but as soyoil fell those gains turned into losses. Additional pressure came from declines in European rapeseed and Chicago soybeans while soymeal was narrowly mixed. Weaker global crude oil prices weighed on vegetable oils values.
A trader noted canola has yet to find its low and that he believes there’s a fair bit of uncertainty in this year’s harvest. He questioned the accuracy of the satellite models used by Statistics Canada but felt sure there would be sufficient supplies until summer. StatCan is set to publish its survey-based report in early December.
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Manitoba Agriculture issued its final summary of 2023, citing the canola harvest at 96 per cent complete. The oilseed’s yields were 40 to 50 bushels per acre, but there were a few instances of 60 bu./ac.
The Canadian dollar was lower at mid-afternoon Thursday with the loonie at 72.37 U.S. cents compared to Wednesday’s close of 72.56.
There were 49,519 contracts traded on Thursday, which compares with Wednesday when 46,152 contracts changed hands. Spreading accounted for 39,050 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 666.90 dn 11.20 Jan 682.10 dn 11.80 Mar 691.30 dn 12.10 May 697.10 dn 11.60
SOYBEAN futures at the Chicago Board of Trade were lower on Thursday, as precipitation delays the United States harvest.
The U.S. Department of Agriculture published its export sales report and for the week ended Oct. 19 those for soybeans comprised of 1.38 million tonnes of old crop. That was within trade guesses of 700,000 to 1.5 million tonnes.
Soymeal export sales came to 507,500 tonnes of old crop and 100 tonnes of new crop, slightly exceeding market expectations of 250,000 to 500,000. Soyoil incurred a net reduction of 100 tonnes and within guesses of net reductions of 5,000 tonnes to sales of 10,000.
The USDA reported a private sale of 110,000 tonnes of old crop soybeans to China.
The last trade date for November options is set for Oct. 27 and the first notice day for November futures is scheduled for Oct. 31.
CORN futures were slightly lower on Thursday, due to pressure coming from soybeans.
U.S. corn export sales saw 1.35 million tonnes of old crop plus 16,000 tonnes of new crop. The trade expected sales of 600,000 to 1.4 million tonnes.
Iran issued a tender for 180,000 tonnes of feed corn.
WHEAT futures were higher on Thursday, due to developments in the Black Sea.
Reports said Ukraine stopped using its Black Sea corridor due to the threats posed by Russian sea mines and military aircraft armed with anti-ship missiles. However, the Ukrainian government has not confirmed the halt to shipping.
The USDA said wheat export sales of 363,700 tonnes of old crop and 17,200 tonnes of new crop. Market expectations called for 300,000 to 600,000 tonnes.
Another report placed Ukrainian wheat production for 2024/25 to be 21.6 million tonnes, up 2.6 per cent from the previous year.
Taiwan purchased 52,000 tonnes of wheat from the U.S.
