By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 16 (MarketsFarm) – Intercontinental Exchange canola prices fell back on Thursday, due a selloff in the futures and equities markets.
An analyst commented, “the [spec] funds hit the sell button.”
That generated steep declines in global crude oil prices, which spilled over into the vegetable oils. The Chicago soy complex was down sharply, while there were more moderate losses in European rapeseed and Malaysian palm oil.
Canola crush margins pulled back as well, with the nearby January position less than C$220 per tonne above futures.
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The Canadian dollar was lower at mid-afternoon Thursday with the loonie at 72.68 U.S. cents compared to Wednesday’s close of 73.13.
There were 23,792 contracts traded on Thursday, which compares with Wednesday when 41,764 contracts changed hands. Spreading accounted for 12,870 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jan 706.80 dn 12.70 Mar 712.40 dn 12.70 May 715.80 dn 12.70 Jul 719.40 dn 12.00
SOYBEAN futures at the Chicago Board of Trade fell hard on Thursday, weakened by the selloff in the financial markets.
The United States Department of Agriculture announced a private sale for 220,000 tonnes of old crop soybeans to unknown destinations.
The USDA issued its export sales report for the week ended Nov. 9, which showed a marketing year high of 3.92 million tonnes of old crop soybeans, of which 2.61 million were sold to China. Soymeal export sales totaled 144,800 tonnes and those for soyoil were 3,400 tonnes old crop and net reductions of 400 tonnes of new crop.
U.S. President Joe Biden and Chinese President Xi Jinping agreed to a number of items to reduce tensions between the two countries. Among them were increasing trade, including agriculture.
Drought-stricken northern and central Brazil have been forecast to receive rain next week. Soybean planting in those regions has been slowed due to a lack of subsoil moisture.
Much of northwestern Argentina is to get 15 to 40 millimeters of rain in the coming days, according to the Rosario Grain Exchange.
The International Grains Council bumped up its estimate of 2023/24 global soybean production in its November report by 1.3 million tonnes at 394.8 million. The global soybean carryout was nudged up 500,000 tonnes at 62.2 million.
CORN futures turned around on Thursday to finish higher.
U.S. corn export sales tallied 1.81 million tonnes of old crop.
The National Oceanic and Atmospheric Administration has forecast slightly cooler than normal temperatures for most of the growing areas of the U.S. While the Plains and Midwest could be drier than normal, the Eastern Corn Belt is expected to receive above average showers.
The IGC added 3.7 million to its October projection of 2023/24 global corn output, bringing it to 1.23 billion tonnes. The world carryover was raised 1.5 million tonnes to now 284.8 million.
WHEAT futures were lower on Thursday, caught up in the selloff.
U.S. wheat sales were a lackluster 176,300 tonnes of old crop.
Strategie Grains nudged up its call on 2023/24 European Union soft wheat production by 200,000 tonnes to now 125.8 million.
The IGC raised its projection on 2023/24 global wheat production by 1.7 million tonnes in October to now 786.6 million. Ending stocks added 1.8 million tonnes at 264 million.
In a reversal of fortune, parts of the Rhine River were closed to shipping due to high water levels. Prior to recent heavy rains, low levels on the Rhine limited river traffic.
Japan purchased a total of 104,677 tonnes of wheat from Australia, Canada and the U.S.
