By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 30 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Thursday, following declines in the Chicago soy complex and other comparable oils.
A trader said profit-taking was also a factor in the decreases in canola.
Global crude oil prices were slightly higher, providing a small amount of support to edible oil values.
More support for canola came from price rationing caused by tight supplies.
At mid-afternoon the Canadian dollar was stronger with the loonie was at 78.44 U.S. cents, compared to Wednesday’s close of 78.10.
Read Also
Canadian Financial Close: Loonie virtually unchanged
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar remained firm on Friday, along with its United…
There were 12,410 contracts traded on Thursday, which compares with Wednesday when 15,006 contracts changed hands. Spreading accounted for 7,782 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 1,068.80 dn 18.60
Mar 1,018.90 dn 3.50
May 988.90 dn 4.70
Jul 937.50 dn 8.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday, due to profit-taking and South American weather.
The United States Department of Agriculture (USDA) issued its weekly export sales report for the week ended Dec. 23. Old crop soybean export sales were 524,000 tonnes, down 35 per cent from the previous week and a marketing year low. As well sales were well below trade expectations. New crop sales talked 75,000 tonnes.
At 69,500 tonnes, old crop soymeal export sales fell 77 per cent and a marketing year. New sales were 300 tonnes. Soyoil tumbled 92 per cent from the previous week with 9,300 tonnes of old crop, while new crop was 100 tonnes.
Parts of southern Brazil received rain of upwards to two inches. However, other parts of the region got very little or none at all. In the state of Mato Grasso, the soybean harvest was just getting underway, but reports said the oil content is suspect due to wet conditions.
Citing dry conditions, the Rosario Grain Exchange (RGE) reduced its call on Argentina’s soybean production to 45.7 million tonnes. It said 78 per cent of the coming crop has been planted, which is close to the average pace.
There will be regular trading hours on Dec. 31 and tomorrow is the first notice day for January futures.
While the U.S. markets will be open on Jan. 3, the canola market will be closed. Also on Monday, the USDA will issue its monthly fats and oils report and its crush report at 2 pm Central.
CORN futures were lower on Thursday, taking spillover pressure from soybeans and wheat.
The USDA said corn exports sales were nearly 1.25 million tonnes of old crop, up 27 per cent from the previous week and exceeded trade guesses. New crop sales came to 60,000 tonnes.
Farm Futures reported that nitrogen and phosphate prices are 50 to 80 per cent higher than six months ago. The sharp increases are affecting corn, cereal and oilseed prices.
The RGE trimmed its projection for Argentina’s corn production by one per cent at 52.3 million tonnes.
WHEAT futures were down on Thursday, due to poor export sales.
Those wheat sales dropped 54 per cent from the previous week at 199,500 tonnes, slightly below market predictions.
For the week of Jan. 12-18, Russia will increase its wheat export tax to US$98.20 per tonne.
