North American Grain/Oilseed Review

By Marlo Glass, MarketsFarm

WINNIPEG, Oct. 15 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were slightly weaker on Thursday, taking back some gains from earlier in the week.

Trade activity was concentrated in front months, as speculative buyers positioned ahead of the November contract’s expiry.

Ample canola supplies in commercial pipelines kept pressure on prices. According to recent data from the Canadian Grain Commission (CGC), visible supplies are around 1.7 million tonnes.

Canola prices were also weighed down by losses in comparable vegetable oils. Nearby Chicago soyoil contracts were down by about seven tenths of a cent.

Weakness in the Canadian dollar limited the upside for canola, as the dollar lost about four tenths of a cent and was around 75.6 U.S. cents at midday.

Harvest activity across the Canadian Prairies kept pressure on canola prices. According to the province’s most recent crop report, Saskatchewan’s canola crop is approximately 99 per cent harvested.

On Wednesday, 36,222 contracts were traded, which compares with Wednesday when 49,524 contracts changed hands. Spreading accounted for 28,804 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, due to continued export demand.

This morning, the USDA announced a sale of 261,000 tonnes of soybeans, purchased by China.

Yesterday, economists at the University of Illinois published a note that said, “current economic conditions would suggest a shift from corn to soybeans for the 2021 growing season.”

Long-term forecast in Brazil call for widespread rains in the country’s north central growing regions, which will aid in planting the country’s soybean crop.

CORN futures were also stronger today, despite reports of increased ethanol stocks.

Recent data from the Energy Information Administration (EIA) showed increased ethanol production and larger stocks for the week ending Oct. 9. Production was up by 1.5 per cent to total 937,000 barrels per day, and stocks were 1.7 per cent higher, totalling 20 million barrels.

Regionally, stocks were down in the Midwest, but not enough to compensate for a 506,000 barrel increase to stocks in the Gulf region.

According to the Brazilian Corn Ethanol Union, 2020/21 corn based ethanol production will total 15.725 million barrels.
That is expected to more than double the following year, utilizing 13 million tonnes of corn per year.

WHEAT futures were broadly higher on Thursday.

The Rosario Grains Exchange lowered their forecast for Argentina’s wheat crop by 1 million tonnes to total 17 million tonnes, citing prolonged dry conditions in key growing regions.

A private firm expects the combined wheat output for Britain and the E.U. to total 219.5 million tonnes, which is a 200,000 tonne gain from the previous forecast.
Japan purchased 87,100 tonnes of U.S. wheat in their weekly tender.

END

Futures Prices as of October 15, 2020

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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