North American Grain and Oilseed Review: Canola turns lower in final trading hour

By Glen Hallick, MarketsFarm

WINNIPEG, Sept. 16 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures turned lower on Thursday, unable to fend off the downward pressure from declines in Chicago soyoil.

Saskatchewan Agriculture issued its weekly crop report this afternoon, citing the province-wide harvest of all major crops was at 74 per cent complete. The combining of canola was at 54 per cent finished.

A trader said canola is very likely to continue trading sideways until there is fresh news. He suggested that if the seasonal rains in drought-stricken Brazil fail to materialize in the near future, that would push up soyoil and spillover into canola.

At mid-afternoon the Canadian dollar was lower and helped to temper losses in canola. The loonie was at 78.86 U.S. cents, compared to Wednesday’s close of 79.05.

There were 22,842 contracts traded on Thursday, which compares with Wednesday when 35,548 contracts changed hands. Spreading accounted for 18,442 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Nov 875.50 dn 4.30
Jan 867.50 dn 4.30
Mar 854.40 dn 4.20
May 836.60 dn 5.00

SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly higher on Thursday with export sales on the high side of market expectations.

The United States Department of Agriculture reported weekly export sales for the week ended Sept. 9 were comprised of 1.26 million tonnes of 2021/22 soybeans and 2,000 tonnes for 2022/23.

Soymeal export sales tallied 95,400 tonnes of old crop and 42,400 tonnes of new crop. Soyoil incurred a net reduction of 1,700 tonnes of old crop and net sales of 6,100 tonnes of new crop, of which 6,000 tonnes was bought by Canada.

The USDA announced a private sale of 132,000 tonnes of soybeans to China. Delivery is to be during the current marketing year. That said, with U.S. shipments through the Gulf of Mexico still impaired, China has been seeking alternative sources for soybeans. One report cited China apparently buying 360,000 tonnes of soybeans from Brazil.

CORN futures were lower on Thursday, as global crude oil prices were either side of steady.

Rumours persist that the early U.S. corn harvest has produced lower than expected yields and the corn of poor quality. The USDA is scheduled to issues its next crop progress report on Sept. 20.

The USDA said export sales of corn amounted to 246,600 tonnes of 2021/22 crop and 2,300 tonnes for 2022/23. The sales were well under the trade estimate of 500,000 to 1 million tonnes.

In international purchases, South Korea made two acquisitions of corn, one for 201,000 tonnes and the other for 198,000 tonnes.

WHEAT futures were higher on Thursday, due to strong export sales.

Wheat export sales were up 59 per cent and hit a 2021/22 marketing year high at 617,100 tonnes and towards the high of trade predictions.

Strategie Grain cut its forecast of European Union wheat production in 2021/22 by 1.8 per cent at 129.1 million tonnes. Also, ahead of next week’s supply and demand report from the International Grains Council (IGC), Strategie Grain estimated global wheat production in 2021/22 to be 739.4 million tonnes, making for a 5.6 per cent cut to the IGC’s August estimate.

Russia reported its wheat harvest was 71 per cent complete, with yields said to be lower than those in 2020. Also, Russia kept its projection of next year’s wheat plantings at 69.9 million acres, 3.6 per cent less than what the USDA forecast earlier this month.

In international wheat sales, Morocco bought 363,000 tonnes and Jordan passed on offers for its tender of 120,000 tonnes.

Futures Prices as of September 16, 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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