North American Grain and Oilseed Review: Canola, soybeans take hard losses

By Glen Hallick, MarketsFarm

WINNIPEG, Jan. 19 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were significantly weaker on Tuesday, due to spillover from profit-taking on the Chicago soy complex.

Following the Martin Luther King Jr. holiday, the Chicago Board of Trade reopened to see sharp declines in soybeans and soymeal. Soyoil finished slightly lower after taking much larger losses earlier in the session.

A trader said the weekend rains over Argentina and Brazil will improve their crops, which weighed on values in Chicago.

There were also declines in European rapeseed and Malaysian palm oil, which further eroded any support for canola.

At mid-afternoon the Canadian dollar was higher at 78.53 U.S. cents after closing Monday at 78.36.

There were 31,977 contracts traded on Tuesday, which compares with Monday when 8,178 contracts changed hands. Spreading accounted for 18,102 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Mar 664.20 dn 19.80
May 646.60 dn 19.40
Jul 630.60 dn 18.90
Nov 541.60 dn 9.60

SOYBEAN futures at the Chicago Board of Trade (CBOT) were dramatically weaker on Tuesday due to profit-taking spurred on by the weather in South America.

Over the weekend Argentina and Brazil received rain that will provide their soybean crops with a much needed boost.

Soybean and Corn Advisor Inc. left its projections for soybean production in Brazil at 128 million tonnes and 46 million tonnes for Argentina.

AgRural estimated that about 0.4 per cent of Brazil’s soybean crop had been harvested.

The United States Department of Agriculture (USDA) announced a private sale of 132,000 tonnes of soybeans to China. Delivery is to be during the 2021/22 marketing year.

In the USDA weekly export inspections report about 2.06 million tonnes of soybeans were shipped during the week ended Jan. 14. That brought the year-to-date total to 42.96 million tonnes, which was almost 78 per cent ahead of this time last year.

The European Union reported its soybean imports for the current marketing year were at 8.04 million tonnes as of Jan. 15. That’s almost five per cent higher than a year ago.

CORN futures were lower on Tuesday catching some spillover from soybeans.

The USDA reported two private sales of corn, with 128,000 tonnes to Japan and 100,000 tonnes to Israel. Both sales are to be delivered during the current marketing year.

The department said corn export inspections came to nearly 877,000 tonnes. That boosted the year-to-date to approximately 17.28 million tonnes, about 82 per cent more than a year ago.

The corn harvest in Brazil reached 3.4 per cent complete, according to a report.

Soybean and Corn Advisor Inc. left its projections for corn production in Argentina and Brazil at 44.5 million tonnes and 102 million tonnes respectively.

Mexico said it will expand its ban on GMO corn to include corn for feed. To help cover the country’s demand, focus is to be placed on increasing corn yields to depend less on imports. Mexico normally imports about 16 million tonnes of U.S. corn.

WHEAT futures were mixed on Tuesday with losses in Chicago and small gains for Kansas City and Minneapolis.

The USDA said wheat export inspections were almost 276,900 tonnes, with the year-to-date sitting at 15.57 million tonnes. That’s down about 2.6 per cent from this time last year.

The EU reported its total wheat exports were just short of 14 million tonnes, as of Jan. 17. That’s down about 16.4 per cent from a year ago.

In international purchases, Japan tendered for 100,000 tonnes of wheat, Algeria is seeking to buy 50,000 tonnes, and the Philippines tendered for 100,000 of feed wheat. Turkey postponed its tender for 400,000 tonnes.

Futures Prices as of January 19, 2021

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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