By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 18 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were narrowly mixed at the close on Thursday, in an attempt to recover from double-digit losses earlier in the session.
Support for the Canadian oilseed came from strong upticks in Chicago soybeans and soymeal, however weakness in soyoil weighed on values. Additional pressure came from losses in European rapeseed and Malaysian palm oil. Increases in global crude oil prices tempered the declines in vegetable oils.
A trader predicted the coming canola harvest will be under 19 million tonnes. He said that’s due to excessive moisture in some parts of the Prairies and too little in other areas of the region. He added those conditions have eliminated any chance of output in 2022/23 reaching 20 million tonnes.
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The trader also warned canola prices will most likely drop as fall approaches. He also said crushers are experiencing some of the best margins he’s ever seen.
Saskatchewan reported that the province’s harvest was at five per cent complete overall, with winter cereals leading the way.
The Canadian dollar was lower at mid-afternoon, with the loonie at 77.25 U.S. cents, compared to Wednesday’s close 77.45.
There were 27,724 contracts traded on Thursday, which compares with Wednesday when 24,978 contracts changed hands. Spreading accounted 16,436 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 815.40 dn 0.20
Jan 824.40 unchanged
Mar 831.40 up 0.20
May 836.10 up 1.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, benefitting from higher crude oil prices. However, that support failed to generate gains for soyoil.
The United States Department of Agriculture (USDA) issued its export sales report and for the week ended Aug. 11, sales of old crop soybeans came to 96,900 tonnes and within trade expectations. Those for new crop exceeded 1.3 million tonnes and were well above market projections.
U.S. soymeal export sales included 66,600 tonnes of old crop and 296,700 tonnes of new crop, while soyoil came to 1,200 tonnes of old crop. Both were within trade guesses.
The USDA attaché post in Brazil pegged 2022/23 soybean production in the country at 144 million tonnes, while 2021/22 output was revised to 126.6 million tonnes.
Tensions between the U.S. and China have been further strained as the former is undertaking trade talks with Taiwan.
CORN futures were higher on Thursday, overcoming declines earlier in the session thanks to spillover from soybeans.
The USDA said export sales of old crop corn tallied 99,300 tonnes and on the low end of trade predictions. New crop totaled 750,000 tonnes, which was slightly above projections.
Rain fell overnight across most of the U.S. Corn Belt.
China said it imported 1.54 million tonnes of corn in July, which is down 46 per cent from a year ago.
The Buenos Aires Grain Exchange pegged 2022/23 corn acres in Argentina at 18.5 million, down 2.6 per cent from 2021/22.
WHEAT futures were weaker on Thursday, due to lackluster export sales.
U.S. wheat sales hit a marketing year low of 207,200 tonnes, a drop of 42 per cent from the previous week and below trade expectations.
While heavy rains coming to the U.S. Southern Plains, dry weather is forecast to continue in the Northern Plains.
While grain vessels departing Ukraine have been carrying corn for the most part, reports said more wheat will soon be shipped out of the beleaguered country’s Black Sea ports.
Matif wheat prices fell to their lowest levels in a year.
