By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 26 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) closed higher on Monday as the Canadian dollar took a tumble.
As the United States dollar continued its upward surge, the loonie fell to 72.59 U.S. cents by mid-afternoon, compared to Friday’s close 73.69.
Sharp losses in the Chicago soy complex, European rapeseed and Malaysian palm oil tempered the upside to canola. Growing declines in global crude oil prices applied more pressure on vegetable oils.
The Prairie canola harvest is estimated to be more than halfway finished, with little pressure on the futures. Above normal temperatures over the next few days will aid with what’s left in the fields.
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Agriculture and Agri-Food Canada issued its monthly supply and demand report on Friday, showing canola production for 2022/23 at 19.1 million tonnes. That’s a jump almost 39 per cent over the previous year’s output. However, ending stocks are projected to tumble nearly 43 per cent at 500,000 tonnes.
Statistics Canada reported the August canola crush was almost 633,000 tonnes, down 4.4 per cent from August of last year.
There were 35,192 contracts traded on Monday, which compares with Friday when 25,919 contracts changed hands. Spreading accounted for 25,814 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 826.00 up 7.30
Jan 835.10 up 7.10
Mar 841.60 up 6.40
May 843.70 up 5.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday, as the markets reel from a stronger United States dollar along with ongoing fears of a global recession.
The U.S. Department of Agriculture (USDA) issued its export inspections report and for the week ended Sept. 22 outbound movements of soybeans came to 257,547 tonnes. That’s a drop of more than 50 per cent from the previous week. The year-to-date inspections tally more than 1.17 million tonnes, up 18.3 per cent from the same time last year.
The USDA is scheduled to release its weekly crop progress report later this afternoon, and on Friday the department will publish its quarterly grain stocks report.
There’s a chance for an overnight frost on the U.S. Northern Plains, threatening soybeans and other crops.
Rumours of a coup d’état against Chinese President Xi Jinping were squashed by official sources, according to a report. Xi was said to be in full control as he seeks an unprecedented third term as the leader of China.
As the Argentine government improved foreign exchange rates for farmers to generate further increases in soybean exports, China is said to be looking to purchase more soybeans from the South American country.
CORN futures were lower on Monday, also taking their cue from the economic turmoil.
Corn export inspections were 459,420 tonnes, down 16.4 per cent from last week. The year-to-date exports were nearly 1.61 million tonnes, up 21 per cent compared to a year ago.
The USDA reported there were 11.28 million head of cattle on feed in the U.S. as of Sept. 1. That’s up 0.5 per cent from Aug. 1 and 0.4 per cent higher than a year ago.
Hurricane Ian is expected to make landfall in the southeastern U.S., delaying any harvesting of crops.
WHEAT futures were weaker as well on Monday, following soybeans and corn to the downside in the macro selloff.
The USDA said wheat export inspections tallied 520,464 tonnes, falling 37.8 per cent on the week. The year-to-date reached 7.78 million tonnes, 4.4 per cent behind this time last year.
The U.S. Southern Plains are forecast to remain warm and dry.
SovEcon estimated that 21.3 million acres of winter grains have been planted in Russia. That’s down 14.8 per cent from a year ago due to rain delays.
