By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 15 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) fell back on Thursday due to losses in comparable oils.
Declines in Chicago soybeans and soyoil, along with those in European rapeseed and Malaysian palm oil were generated by a downturn in global crude oil prices. Increases in Chicago soymeal tried to temper further losses in canola.
Saskatchewan reported that its province-wide harvest of all crops neared the two-thirds complete mark. Canola combining was at 39 per cent finished.
The Canadian dollar was lower at mid-afternoon as the loonie dropped to 75.65 U.S. cents, compared to Wednesday’s close 75.95.
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There were 30,817 contracts traded on Thursday, which compares with Wednesday when 29,345 contracts changed hands. Spreading accounted for 23,862 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 788.40 dn 9.30
Jan 796.40 dn 9.30
Mar 803.20 dn 9.20
May 804.60 dn 8.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower in choppy trading on Thursday, due to weakness in crude oil.
After 20-consecutive hours of negotiations between United States railways and unionized workers, the country’s first railroad strike in 30 years has been averted. Just as the major railways were about to scale back or shut down their operations, a tentative deal was reached. Pending ratification, workers are to receive a 24 per cent pay hike over five years and improved working conditions.
Following issues with a new reporting system, the U.S. Department of Agriculture issued three export sales reports. For the two-week period ended Aug. 25, soybean sales were 355,200 tonnes, soymeal came to 274,800 tonnes and soyoil tallied 2,200 tonnes.
For the week ending Sept. 1, soybean export sales totaled 1.47 million tonnes. Soymeal sales came to 38,900 tonnes plus 1,500 tonnes of soyoil.
For the week ended Sept. 8, soybean export sales were 843,000 tonnes, with 34,100 tonnes of old crop soymeal and 141,800 tonnes of new crop soymeal. Soyoil was at 4,300 tonnes.
As the 2021/22 marketing year for soybeans ended on Aug. 31, the carryover amounted to 2.48 million tonnes.
Ahead of the next monthly report from the National Oilseed Processors Association (NOPA), the average trade prediction for the August soybean crush is about 4.5 million tonnes.
CORN futures were lower as well on Thursday, following soybeans and wheat to the downside.
The USDA placed corn export sales at 243,800 tonnes for the period ended Aug. 25, and for the week ended Sept. 1 sales were 816,000 tonnes of old crop plus 30,500 tonnes of new crop. For the week ended Sept. 8 corn sales were 583,100 tonnes. The 2021/22 carryout came to 1.04 million tonnes.
The U.S. Energy Information Administration (EIA) reported ethanol production for the week ended Sept. 9 averaged 963,000 barrels per day – down 2.6 per cent from the previous week. Ethanol stocks lost 295,000 barrels at 22.94 million.
WHEAT futures were weaker on Thursday, with the largest declines in Chicago and Kansas City wheat.
The USDA reported wheat export sales for the period ended Aug. 25 were 1.03 million tonnes, those for the week ended Sept. 1 were 192,600 tonnes and 217,300 tonnes for the week ended Sept. 8.
In light of incomplete data, French wheat exports appeared to be 7.54 million tonnes as of Sept. 11. That’s up 5.6 per cent from a year ago.
The ongoing droughts in the U.S. Southern Plains, Europe and Argentina, along with the continuing war in Ukraine have been creating tight global supplies of wheat.
