By Glen Hallick, MarketsFarm
WINNIPEG, Feb 2 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures saw declines on the old crop contracts on Thursday, while the new crop positions crept up a little.
A trader said the spreaders have been pushing around canola as means to make a profit. However, he stressed it’s highly unlikely there’s anything at this time could suddenly crop up to shove canola out of being rangebound.
Ahead of the Statistics Canada grain stocks report on Feb. 7, the average trade guess puts canola stocks as of Dec. 31 at 11.7 million tonnes, up by about 33 per cent from a year ago. Wheat stocks are also expected to be up by a third at 22.3 million tonnes.
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The frigid weather across the Prairies this week has likely curtailed producer deliveries of canola as well as other grains. Meanwhile, strong crush margins continued to underpin canola values.
The Canadian dollar was virtually unchanged at mid-afternoon Thursday, with the loonie at 75.05 U.S. cents.
There were 23,282 contracts traded on Thursday, which compares with Tuesday when 21,114 contracts changed hands. Spreading accounted for 16,014 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Mar 825.10 dn 2.90 May 823.70 dn 3.40 Jul 825.80 dn 3.10 Nov 807.90 up 0.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, along with moderate upticks in soymeal while soyoil bounced either side of unchanged for most of the session.
The United States Department of Agriculture (USDA) issued its export sales report for the week ended Jan. 26, showing old crop soybean sales of 736,000 tonnes, a pinch above the low end of trade expectations. There were no new crop sales reported. Soymeal export sales tallied 165,400 tonnes of old crop and 4,200 tonnes of new crop. Those for soyoil were 900 tonnes of old crop.
The USDA will release its monthly supply and demand report on Feb. 8 at 11 am CST. Futures International forecast a 10 million-bushel increase in soybean ending stocks at 220 million bushels and with exports to hold at 1.99 billion.
Brazil reported its soybean exports for January were 851,878 tonnes, tumbling more than 65 per cent from those during January 2022.
StoneX nudged up its projection of soybean production in Brazil by nearly 0.3 per cent at 154.2 million tonnes.
CORN futures were lower on Thursday, correcting from yesterday’s gains.
Corn export sales increased to 1.59 million tonnes of old crop, which exceed market projections. New crop sales came to 163,200 tonnes.
Futures International projected endings stocks for U.S corn to slip two per cent at 1.22 billion bushels and exports are expected to remain at 1.93 billion.
Brazil said its January corn exports totaled 6.35 million tonnes, for a jump of 132 per cent from the previous January.
StoneX pegged its call on corn production in Brazil at a record 129.9 million tonnes.
WHEAT futures were mixed on Thursday, with declines in Kansas City and Minneapolis while Chicago managed to edge up into the plus side.
Wheat export sales comprised of 136,400 tonnes of old crop, which were far below trade expectations, as well as 32,500 tonnes of new crop.
U.S. wheat ending stocks are to ease back five million bushels to 562 million, with exports down by the same amount at 770 million.
Hot conditions in India have started to affect the country’s wheat crop, according to a report.
