North American Grain and Oilseed Review: Choppy trading produces mixed results

By Glen Hallick, MarketsFarm

WINNIPEG, Jan. 13 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts mixed on Wednesday, with losses in the front months while the more deferred months were steady to higher.

An analyst said farmers need to carefully watch local basis levels as movement for cash and futures prices has been erratic.
Also, he advises farmers shouldn’t become too complacent with current prices and should consider new crop months.

While the Chicago soy complex was lower, there were gains in Malaysian palm oil and the front months of European rapeseed.

At mid-afternoon the Canadian dollar was higher. The loonie was at 78.79 U.S. cents, compared to Tuesday’s close of 78.46.

There were 26,168 contracts traded on Wednesday, which compares with Tuesday when 46,749 contracts changed hands. Spreading accounted for 16,594 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Mar 684.70 dn 2.20
May 668.40 dn 0.60
Jul 653.50 up 1.30
Nov 552.80 up 4.90

SOYBEAN futures at the Chicago Board of Trade (CBOT) weaker on Wednesday, despite a number of supportive issues.

The United States Department of Agriculture (USDA) announced a private sale of 464,300 tonnes of soybeans to unknown destinations. Approximately 85 per cent of the sale is to be delivered during the current marketing year, with the remainder in 2021/22.

In yesterday’s supply and demand report, the USDA reduced soybean production by 35 million bushels at nearly 4.14 billion.
Dry conditions in South America, especially in Argentina, remain a concern.

CONAB lowered its estimate of Brazil’s soybean crop by 760,000 tonnes at 133.7 million.

Indonesia said it wants to import up to 2.6 million tonnes of soybeans for tofu and tempeh production.

CORN futures were higher on Wednesday, due to yesterdays’ supply and demand report as well as developments in Argentina.

The USDA cut corn yields in yesterday’s supply and demand report by 3.8 bushels per acre to 172 bu/ac.

Argentina said it will resume corn exports following a series of labour disputes.

CONAB lowered its estimate of Brazil’s corn crop by 300,000 tonnes at 102.3 million.

China increased its import demand for corn by two million tonnes at 185 million. The country’s corn production is forecast to come in at 260.7 million tonnes, down four million from 2019/20.

Russia said it could impose a tax of 10 Euros per tonne on corn exports.

WHEAT futures were mixed on Wednesday, with losses for Chicago, but gains in Kansas and Minneapolis.

AgriMer reported French exports of soft wheat to non-European Union countries dropped 46 per cent at 267.1 million bushels.

Heavy snowfall slowed loading operations at Ukraine’s largest Black Sea port.

Russia is considering an export tax on barley of 25 Euros/tonne and increasing its wheat export tax to 45 Euros/tonne.

Futures Prices as of January 13, 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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