By Glen Hallick, MarketsFarm
WINNIPEG – Intercontinental Exchange (ICE) canola futures were lower Thursday due to weakness in the Chicago soy complex and European rapeseed, with additional pressure from profit-taking.
A reversal of fortunes in global crude oils also weighed on canola and other edible oil values. Crude completely lost its strong gains from this morning to be pushing significantly in the red.
Tight canola supplies continued to underpin canola and attempted to stymie further losses.
The Canadian dollar was weaker, which also helped to keep canola from going lower. At mid-afternoon the loonie was at 80.24 U.S. cents, compared to Tuesday’s close of 80.53.
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There were 18,638 contracts traded on Thursday, which compares with Wednesday when 15,895 contracts changed hands. Spreading accounted for 10,598 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 978.70 dn 12.00
Mar 955.30 dn 7.80
May 925.80 dn 5.00
Jul 886.00 dn 2.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday as declines in global crude oil weighed on values.
The United States Department of Agriculture (USDA) issued its weekly export sales report, and for the week ended Oct. 28 soybean were up 58 per cent from the previous week at more than 1.86 million tonnes. Total export sales for soymeal amounted to 226,400 tonnes, along with 11,200 tonnes of soyoil. The three were within trade expectations.
The USDA said there was a private sale today of 100,000 tonnes of soybeans to Egypt. Delivery is to be during the current marketing year.
In the monthly census, the USDA reported 2.17 million tonnes of soybeans were shipped in September, tumbling 69.8 per cent from a year ago. Soymeal saw 724,000 tonnes shipped that month for 12.49 million on the 2020/21 marketing year. Soyoil saw 15,362 tonnes exported in September and 781,766 on the year.
The department is scheduled to issue its monthly World Agricultural Supply and Demand Estimates (WASDE) on Nov. 9 at 11 am Central. The trade foresees increases in soybeans, corn and wheat.
StoneX bumped up its forecast on the 2021/22 Brazil soybean crop by a third of a per cent at 144.7 million tonnes. The consultancy said the quick pace of planting and good weather point to increased production, despite the coming onset of another La Nina.
The United Nations’ Food and Agriculture Organization (FAO) stated world food prices have hit a 10-year high. The FAO said increases were being driven by higher commodity prices, unfavourable harvests in a number of countries and strong demand.
CORN futures were lower on Thursday on spillover from soybeans.
The USDA said corn export sales increased 37 per cent from the previous week at over 1.22 million tonnes and were within trade guesses.
The department’s monthly census reported 2.55 million tonnes of corn were exported in September, down 34.8 per cent from a year ago.
The National Oceanic and Atmospheric Administration (NOAA) has forecast above normal temperatures for most of the major growing areas of the U.S., with little precipitation. That will help speed along the remaining corn and soybean harvests.
StoneX estimated Brazil planted corn acres will increase 7.4 per cent and production of the country’s second corn crop will balloon by 47.9 per cent from last year at 87.5 million tonnes.
WHEAT futures were lower on Thursday, including a very sharp downturn for Minneapolis, as reports stated that U.S. wheat is now the most expensive on the world market.
Yesterday’s announcement by the U.S. Federal Reserve that will begin tapering off its US$120 billion per month stimulus program to US$15 billion/month saw the U.S. dollar swing higher.
U.S. wheat export sales were 400,100 tonnes, up 49 per cent from a week ago and towards the high side of expectations.
The USDA said wheat shipments in September amounted to 2.31 million tonnes, dropping 13.9 per cent from a year ago. After the first four months into 2021/22 marketing year 8.99 million tonnes have been shipped.
Russia announced its wheat export tax is set to increase to US$69.90 per tonne effective Nov. 10.
Rain in Australia was said to be posing a threat to the country’s wheat crop, particularly in the eastern half of the country.
