By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures turned weaker on this first day of summer, as the July contract closed slightly below its support level of C$600 per tonne.
Losses in the Chicago soy complex and European rapeseed weighed on canola values, as gains in Malaysian palm attempted to stem further declines. Meanwhile, upticks in crude oil spilled over into the oilseeds.
Although the prospects for good crops on the Prairies still hold, a trader said about third of those crops continue to contend with conditions that are too wet and too cool. He added a disaster is not pending, but warmer and drier weather is needed across the region.
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Saskatchewan pegged the development of its pulses and fall cereals at about 77 per cent normal. Development of the spring cereals was estimated to be 66 per cent normal and that for oilseeds was at 55 per cent.
The Canadian dollar was higher by mid-afternoon Thursday with the loonie at 73.04 U.S. cents compared to Wednesday’s close of 72.94.
There were 32,120 contracts traded on Thursday, compared to the 19,161 contracts that changed hands on Wednesday. Spreading accounted for 15,192 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 599.40 dn 10.50 Nov 618.10 dn 10.30 Jan 624.40 dn 10.20 Mar 628.20 dn 9.30
SOYBEAN futures at the Chicago Board of Trade were weaker the day after the Juneteenth holiday, still pressured by good crop conditions.
The United States asked the European Union to delay its deforestation law as U.S. exporters are having difficulty to prepare. As of Dec. 30, the EU will require companies to provide proof that their soy, palm oil, beef, coffee and other products did not contribute to deforestation.
The U.S. Department of Agriculture postponed its weekly export sales report to Friday due to the holiday.
The USDA is scheduled to publish its planted acres and quarterly stocks reports on June 28.
Although U.S. May soy exports to China of 1.27 million tonnes jumped 156 per cent compared to the previous May. However, they paled to China’s soy imports from Brazil of 8.8 million tonnes despite a 19 per cent drop from a year ago.
Brazil crush lobby Abiove said the demand for soybeans for biofuel will propel the country’s future increases of soybean acres. This comes as China continued to diversify its soy imports from different countries.
CORN futures were weaker on Thursday, also due to crop conditions and a lack of fresh news.
The U.S. Energy Information Administration reported ethanol production for the week ended June 14 was up 34,000 barrels per day at nearly 1.06 million. Soyoil stocks increased 395,000 barrels at 23.62 million.
The USDA attaché in Mexico City projected Mexico’s corn production in 2024/25 to increase 10 per cent from last year at 25 million tonnes. Corn imports are to remain at 22 million tonnes and total consumption is to nudge up to 47.3 million. That is to see ending stocks slip to 2.29 million tonnes.
WHEAT futures were down hard on Thursday, getting pressure from the winter wheat harvest and ideas of a decent spring wheat crop.
The Kansas Wheat Harvest Report said yields in eastern part of the state were 40 to 70 bushels per acre and those in central Kansas were about 45 to 60 bushels per acre.
Monsoon rains over the next few days forecast to bring relief from severe heat to India’s northern grain growing areas.
IKAR bumped up its call on the coming Russian wheat crop by 500,000 tonnes at 82 million.
Wheat planting in northern Argentina will begin after rain fell across the region. The Buenos Aires Grain Exchange projected 15.6 million acres of wheat will be planted in 2024/25, up 1.6 per cent from the previous year. The exchange said about two-thirds of Argentina’s wheat has been planted.
