By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 20 (MarketsFarm) – Intercontinental Exchange canola prices closed stronger on Monday, due to support from sharp upticks in the Chicago soy complex as well more modest increases in Malaysian palm oil.
Global crude oil prices also climbed higher, lending support to the vegetable oils. Meanwhile, pressure on the Canadian oilseed was felt from losses in European rapeseed.
Canola crush margins for the nearby January positions bumped up to nearly C$220 per tonne above futures.
Statistics Canada is scheduled to publish its survey-based production report in two weeks’ time. Positioning ahead of the report is set to occur as the report draws closer.
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The Canadian dollar was virtually unchanged at mid-afternoon Monday with the loonie at 72.86 U.S. cents.
There were 45,076 contracts traded on Monday, which compares with Friday when 26,551 contracts changed hands. Spreading accounted for 29,284 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jan 716.70 up 19.50 Mar 720.40 up 18.60 May 724.80 up 19.20 Jul 729.20 up 19.60
SOYBEAN futures at the Chicago Board of Trade were up sharply on Monday, along with strong increases in soyoil plus an about-face in soymeal to close higher.
The United States Department of Agriculture issued its export inspections report for the week ended Nov. 16, showing outbound movements of soybeans were nearly 1.61 million tonnes, down from 1.94 million the previous week. At 15.92 million tonnes, the year to date continued to lag well behind last’s year export inspections of 17.36 million.
Rain over the U.S. Eastern Corn Belt, parts of the Midwest and Northern Plains are expected to slow the remaining soybean and corn harvests.
With the Thanksgiving holiday on Thursday, trading at CBOT will be closed from Wednesday evening until Friday morning. Then Friday’s session will wrap up early at 12:05 CST.
The election of far-right populist Javier Milei in Argentina is likely to have some sort of an effect on agriculture in Argentina. Several agricultural groups in the country said they are hoping to co-operate with the incoming president.
Rain continued in Brazil with soybean planting as of Nov. 16 at 68 per cent complete, 12 points back from a year ago, according to AgRural. That slow pace has led some farmers to switch from soybeans to planting cotton.
China reported its October soybean imports were 5.16 million tonnes of which 93 per cent came from Brazil and 4.4 per cent from the U.S.
CORN futures turned around on Monday to close higher, with spillover from soybeans overpowering losses in wheat.
The USDA announced a private sale of 104,000 tonnes of old crop corn to Mexico.
U.S. corn export inspections were lower on the week at 553,899 tonnes compared to 707,374. However, the year-to-date of 6.81 million tonnes remained well ahead of last year’s 5.51 million.
December grain options are set to expire on Nov. 24.
AgRural placed corn planting in center-south Brazil at 80 per cent finished, two point downs from a year ago.
WHEAT futures were lower on Monday, due to sluggish exports.
The USDA reported wheat export inspections of 358,254 tonnes compared to last week’s 222,572. The year-to-date reached 7.82 million tonnes, a fair distance behind the 10.29 million this time last year.
SovEcon and IKAR stated Russian wheat export prices held from last week at US$230 to US$236 per tonne.
