North American Grain and Oilseed Review: New crop canola pulls away from earlier lows

By Glen Hallick, MarketsFarm

WINNIPEG, June 24 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mixed on Thursday with gains in old crop July, and the new crop contracts coming well off of their lows from earlier in the session.

Chicago soyoil turned around to finish higher, but downward pressure came from declines in European rapeseed and Malaysian palm oil.

Rain for the southern areas of Alberta and Saskatchewan was forecast to drop up to 10 millimeters, with some locales to perhaps see as much as 25 mm.

After a few days of regaining strength, the Canadian dollar was lower at mid-afternoon. The loonie was at 81.18 U.S. cents compared to Wednesday’s close of 81.39.

There were 21,486 contracts traded on Wednesday, which compares with Tuesday when 23,467 contracts changed hands. Spreading accounted for 6,738 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jul 789.10 up 16.80
Nov 738.60 up 0.70
Jan 738.80 dn 0.80
Mar 732.90 dn 1.10

SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Thursday, continuing the liquidation from the previous session. However, soyoil turned around to finish higher.

The United States Department of Agriculture (USDA) announced two private sales of soybeans, with 132,000 tonnes to China and 260,000 tonnes for unknown destinations. Delivery for both is to be during the upcoming marketing year.

In the USDA’s weekly export sales report, for the week ended June 17, old crop soybean sales were 141,700 tonnes with 47,300 tonnes in new crop. While old crop sales exceeded market expectations, those for new crop fell well short. Soymeal export sales tallied 387,600 tonnes of old crop and 22,000 tonnes of new crop, with soyoil at 2,400 tonnes.

Ahead of the USDA’s acreage report next week, a Farmers Business Network (FBN) survey of approximately 2,000 U.S. growers found soybean acres are to be 86.5 million versus the department’s March estimate of 87.6 million.

The International Grains Council (IGC) issued its monthly supply and demand report, which showed global soybean production for 2021/22 remaining at 383 million tonnes. Global ending stocks were increased 3.9 per cent from last month’s call at 53 million tonnes.

CORN futures were also lower on Thursday, in sympathy with soybeans.

The U.S. Eastern Corn Belt is forecast to receive rain, but the western portion and the Northern Plains are expected to remains remain dry.

The USDA said export sales of old crop corn amounted to 216,300 tonnes and new crop totaled 310,800 tonnes, with both falling about mid-range in trade guesses.

The FBN survey reported U.S. corn acres should rise to 92.9 million from the USDA’s March estimate of 91.1 million.
SovEcon added 1.5 million tonnes to its call on Ukrainian 2021/22 corn production, bringing its projection to 38.3 million tonnes.

The IGC reported a 0.75 per cent bump upward in 2021/22 world corn production from last month’s report at 1.2 billion tonnes, along with a 1.1 per cent rise in the corn carryover at 267 million tonnes.

WHEAT futures were mixed on Thursday, with more gains for Minneapolis spring wheat as the Kansas City and Chicago wheats pulled back.

The USDA reported weekly wheat export sales of 374,100 tonnes, coming within market predictions.

The FBC survey projected U.S. spring wheat acres at 12.1 million compared to the 11.9 million the USDA forecast in March.

The IGC snipped one million tonnes off of its forecast for 2021/22 global wheat production at 789 million tonnes. Also, the council trimmed wheat ending stocks by 1.7 per cent at 283 million tonnes.

The European Union reported its total wheat production for 2021/22 should be about 126.2 million tonnes, up 7.7 per cent from 2020/21. Exports were pegged to be 30 million tonnes, for an increase of 11.1 per cent over the 2020/21 marketing year.

Ukraine raised its 2021/22 wheat production by just over one per cent at 29.2 million tonnes.

Futures Prices as of June 24, 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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