By Glen Hallick, MarketsFarm
WINNIPEG, March 28 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished higher on Monday, gleaning support from gains in European rapeseed.
Also, concerns over dry conditions in the western half of the Canadian Prairies underpinned canola values, as did tight supplies.
The gains in the Canadian oilseed were tempered by sharp declines in the Chicago soy complex, as well as losses in most Malaysian palm oil positions. Steep losses in global crude oil prices weighed on edible oil values.
In the face of a stronger United States dollar, the Canadian dollar was lower at mid-afternoon. The loonie retreated to 79.77 U.S. cents, compared to Friday’s close of 79.99.
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There were 14,185 contracts traded on Monday, which compares with Friday when 7,762 contracts changed hands. Spreading accounted for 7,092 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 1,143.20 up 3.80
Jul 1,120.40 up 6.70
Nov 968.10 up 7.00
Jan 968.00 up 7.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday, following new COVID-19 lockdown measures in China that dropped global crude oil prices.
The United States Department of Agriculture is scheduled to release its planting intentions and grain stocks reports on Thursday at 11 am CDT. The trade pegged U.S. soybean plantings for 2022/23 between 86 million to 92.2 million acres compared to last year’s 87.2 million.
Market expectations for U.S. soybean stocks range from 1.60 billion to 1.97 billion bushels, versus 1.56 billion a year ago.
The USDA announced a private sale of 132,000 tonnes of old crop soybeans to China.
The department’s export inspections report showed 628,819 tonnes of soybeans were outbound for the week ending March 24. That’s up 13.6 per cent from the previous week. The year-to-date inspections were nearly 43.43 million tonnes and 20 per cent lower from a year ago.
WHEAT futures were down hard on Monday, with rain in the forecast in the U.S. Midwest and the Eastern Corn Belt.
Another round of ceasefire talks between Russia and Ukraine are to begin either today or tomorrow. There have been indications that Ukraine is willing to compromise on some of Russia’s demands, particularly over the Donbas.
Market projections of total 2022/23 U.S. wheat acres are from 45.9 million to 48.89 million, compared to the 46.7 million that were seeded last year. Of that, spring wheat is expected to be 10.8 to 12.45 million acres and durum at 1.5 million to 1.84 million. In 2021/22 they were 11.42 million and 1.64 million respectively.
Trade guesses for U.S. wheat stocks are 998 million to 1.3 billion bushels, compared to 1.31 billion a year ago.
The USDA said wheat export inspections came to 341,191 tonnes, up 2.2 per cent. The year-to-date now totaled 16.89 million tonnes and 17 per cent behind those this time last year.
CORN futures were lower on Monday, due to pressure from soybeans and wheat, but tempered by acreage expectations.
Trade guesses for 2022/23 U.S corn plantings are 89.7 million to 93.5 million acres. In 2021/22, 93.36 million acres were seeded.
Corn stock estimates range from 7.63 billion to 8.09 billion bushels, compared to 7.7 billion this time last year.
The USDA said there’s a private sale of 127,920 tonnes of old and new crop corn to unknown destinations.
The department reported weekly export inspections of corn were just short of 1.61 million tonnes, but up 7.3 per cent on the week. The year-to-date tallied 29.03 million tonnes, 14.6 per cent less than a year ago.
Ukraine, with its ports sealed off by Russia, arranged for corn exports by rail thru Europe.
