By Glen Hallick, MarketsFarm
WINNIPEG, July 11 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were higher on Monday, getting spillover from gains in other vegetable oils.
Good upticks in the Chicago soy complex, along with more moderate gains in European rapeseed and in the off session for Malaysian palm oil combined to support the Canadian oilseed. With global crude oil prices narrowly mixed, they were providing little direction to veg oils.
Reports stated that the Alberta Canola Producers Commission was attempting to verify reports of canola in some parts of the province bolting, but not flowering.
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As temperatures on the Prairies get warmer this week, they can generate conditions for thunderstorms.
The United States Department of Agriculture is set to release its monthly supply and demand estimates on Tuesday. Positioning ahead of the report was a factor in today’s trading.
The Canadian dollar was slightly higher with the loonie at 77.03 U.S. cents, compared to Friday’s close of 77.11.
There were 16,193 contracts traded on Monday, which compares with Friday when 13,404 contracts changed hands. Spreading accounted for 8,522 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 866.70 up 11.60
Jan 873.30 up 11.10
Mar 879.90 up 10.60
May 884.10 up 9.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Monday, due to market ideas that production will dip this year.
The United States Department of Agriculture (USDA) reported export inspections of soybeans for the week ended July 7 came to 356,716 tonnes, down from the previous week, but higher than a year ago. The year-to-date reached 52.17 million tonnes, about 5.61 million behind this time last year.
The USDA is scheduled to release its weekly crop progress report later this afternoon. The trade believes the condition of U.S. soybeans will change very little either way from last week’s 63 per cent good to excellent.
The department will issue its next supply and demand report tomorrow. Market expectations for soybeans project a production cut to 4.52 billion bushels.
Following rain across the U.S. Midwest today, the weather outlook has called for hot, dry weather for the rest of July.
CORN futures were higher on Monday, catching spillover from soybeans.
Outbound shipments of U.S. corn were 993,725 tonnes, more than last week, but less than a year ago. The year-to-date corn export inspections hit 49.23 million tonnes, 10.07 million tonnes behind last year’s pace.
The trade thinks U.S. corn conditions won’t change very much from last week. Corn was rated at 64 per cent good to excellent.
In tomorrow’s S&D report, corn production is expected to be increased to 14.52 billion bushels.
Ukraine accused Russian forces of setting fire to the country’s corn crops. Reuters reported that Ukraine’s grain exports are down 30 per cent so far in 2022/23.
The ongoing heat wave in western Europe continued to take its toll on crops, especially in France and Spain.
Damage to crops in China has generated optimism for the country increasing its grain imports.
WHEAT futures were weaker on Monday, due to market expectations of greater production in 2022 compared to last year.
The trade forecast U.S. spring wheat output to come in at 480.9 million bushels, with durum higher at 67.1 million and winter wheat to rise to 1.18 billion.
U.S. wheat export inspections were 309,802 tonnes, above those from last week, but lower than this time last year. At 1.92 million tonnes, the year-to-date for wheat is 415,210 tonnes under last year’s inspections.
The U.S. winter wheat harvest is expected to be around two-thirds complete, up from 54 per cent done last week. Spring wheat conditions are projected to bump up slightly from the previous report.
