By Glen Hallick, MarketsFarm
WINNIPEG, June 15 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were stronger on Thursday, due to spillover from a spike in the Chicago soy complex.
Additional support was garnered from upticks in European rapeseed and Malaysian palm oil. Good increases in crude oil prices spilled over into vegetable oils.
Yesterday’s interest rate freeze by the United States Federal Reserve has been beneficial to the markets today.
Saskatchewan reported spring planting is virtually complete at 99 per cent. The province’s canola rated 77 per cent good to excellent, but all crops are facing increasingly dry conditions.
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Rain in Alberta will help crops there, but the province’s south has not received as much or anything at all.
The Canadian dollar was stronger at mid-afternoon Thursday, as the U.S. dollar fell hard. The loonie jumped to 75.68 U.S. cents, compared to Wednesday’s close of 75.20.
There were 64,773 contracts traded on Thursday, which compares with Wednesday when 41,254 contracts changed hands. Spreading accounted for 51,350 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 715.10 up 20.90 Nov 693.00 up 21.10 Jan 700.50 up 21.60 Mar 707.30 up 22.30
SOYBEAN futures at the Chicago Board of Trade surged on Thursday, due to dry growing conditions in the United States, northern Europe, Argentina and Malaysia.
The U.S. Department of Agriculture reported export sales of soybeans for the week ended June 8 comprised of 478,400 tonnes of old crop and new crop sales amounted to 48,500 tonnes. Soymeal had export sales of 207,700 tonnes of old crop and 18,200 tonnes of new crop. Those for soyoil were 2,000 tonnes of old crop and net reductions of 100 tonnes in new crop. All sales were within trade expectations.
The union for port workers on the U.S. West Coast said a tentative deal has been reached with employers for a six-year contract. Earlier this week, U.S. President Joe Biden sent Acting Labor Secretary Julie Su to help move negotiations along as talks had been ongoing for more than a year.
The Rosario Grain Exchange lopped one million tonnes from its latest call on the Argentina soybean harvest, reducing their forecast to 20.5 million tonnes. Initial projections placed the country’s 2022/23 soybean production at about 48 million tonnes.
Malaysia warned its palm oil production in 2023 could drop 10 to 15 per cent compared to last year due to the coming El Nino affecting the weather.
CORN futures were stronger on Thursday, due to dryness on the U.S. Corn Belt.
U.S. export sales tallied 273,300 tonnes of old crop, which were within market guess, plus 21,100 tonnes of new crop.
Farmers in Mexico continued to demand better guaranteed prices for corn, sorghum and wheat. Their protests saw them occupy government buildings and close an airport. They want the national government to set corn prices at the equivalent of US$402.90 per short ton, sorghum at US$374.12/ton, and wheat at US$460.45/ton.
WHEAT futures were also stronger on Thursday, because of concerns over the lack of rain in North Dakota and other wheat-growing states.
Now in its 2023/24 marketing year, U.S. wheat tallied export sales of 165,000 tonnes, which were below market projections.
Russia continued its missile and drone strikes on Ukrainian cities, including Odesa. A report said Ukrainian air defenses claimed to have shot down all 18 drones targeting Odesa. And there was another round of missile strikes on Kryvyi Rih.
