By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 24 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures stepped well back in the old crop months on Monday, while the new crop positions were moderately higher.
Pressure from sharp declines in Chicago soybeans and soyoil, as well as European rapeseed weakened canola. A significant downturn in global crude oil prices spurred the retreat in most veg oils. However, Malaysian palm oil saw increases today.
Agriculture and Agri-Food Canada (AAFC) has called for a turnaround in crop production in 2022/23, provided there are good growing conditions.
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The Canadian dollar was weaker at mid-afternoon, with the loonie at 79.03 U.S. cents, compared to Friday’s close of 79.71.
There were 30,310 contracts traded on Monday, which compares with Friday when 24,336 contracts changed hands. Spreading accounted for 18,780 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Mar 995.90 dn 26.40
May 985.50 dn 23.60
Jul 959.50 dn 17.90
Nov 832.40 up 5.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday, as a drop in global crude oil prices pulled down most edible oils.
The United States Department of Agriculture (USDA) announced a private sale of 132,000 tonnes of soybeans to China. Half of the sale is to be delivered during the current marketing year and the other half during 2022/23.
The USDA issued its weekly export inspection report for the week ended Jan. 20, showing outbound movements of soybeans were nearly 1.3 million tonnes, down 25 per cent from the previous week. The year-to-date rose to 34.75 million tonnes but was 23.7 per cent behind that a year ago.
Reports said there have been suggestions from private consultancies that Brazil’s soybean crop might come in below 130 million tonnes. SAFRAS pegged the soybean harvest at five per cent complete, which was a little ahead of last year’s pace.
CORN futures were higher on Monday, with spillover from wheat edging out pressure from soybeans.
The USDA said there was a private sale of 150,000 tonnes of corn to unknown destinations, with delivery to be during the current marketing year.
Weekly export inspections of corn were almost 1.12 million tonnes, for a 10 per cent drop on the week. The year-to-date reached 16.44 million tonnes and 13 per cent below the same time last year.
Brazil and Argentina received much needed rain during the weekend, with more forecast over the next two weeks.
Agriculture and Agri-Food Canada (AAFC) released its monthly supply and demand estimates on Jan. 21, projecting 2022/23 corn production to be 13.6 million tonnes, for a dip 2.7 per cent compared to last year. The carryover for corn was is to slide 9.3 per cent at 1.95 million tonnes.
WHEAT futures were stronger on Monday, due to rising tensions between Russia and Ukraine over a possible invasion of the latter.
The U.S. and its NATO allies announced they will bolster their military air and sea assets in Eastern Europe. Also the European Union stated it’s ready to impose sanctions against Russia, should the latter invade Ukraine.
The USDA said weekly export inspections of wheat were 400,973 tonnes and up 4.3 per cent compared to the previous week. The year-to-date almost came to 13.22 million tonnes, down 18.2 per cent from this time last year.
Russia said its year-to-date wheat exports of 23 million tonnes were down 21 per cent from a year ago.
AAFC projected total 2022/23 wheat production to improve by almost 44 per cent compared to last year at 31.16 million tonnes – with good growing conditions. Ending stocks were estimated to rise nearly 38 per cent at 4.75 million tonnes.
