Glacier FarmMedia MarketsFarm -– The ICE Futures canola market was on the rise Thursday, showing strength despite mixed sentiment in comparable oils.
Malaysian palm oil made gains, hitting its highest prices this month. Chicago soyoil was steady, European rapeseed was lower and crude oil pulled back due to larger United States stockpiles.
One analyst said Malaysian palm oil was likely pushing canola prices upward, while adding that canola-growing areas in northern Saskatchewan will likely have plenty of moisture this spring.
At mid-afternoon, the Canadian dollar was steady compared to Wednesday’s close.
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There were 36,638 canola contracts traded on Thursday, which compares with Wednesday when 36,015 contracts changed hands. Spreading accounted for 21,603 of the contracts traded. Settlement prices are in Canadian dollars per metric tonne.
The May CORN contract at the Chicago Board of Trade (CBOT) was up for the fourth straight day on Thursday. However, at a gain of only one U.S. cent per bushel, it was the rally’s smallest so far.
The United States Department of Agriculture (USDA) reported on Thursday that 1.082 million tonnes of 2023-24 corn were sold for export during the week ended Feb. 22, up 32 per cent from the previous week and near the high end of trade expectations. In addition, 165,000 tonnes of 2024-25 corn were sold to Japan.
Argentina’s agricultural regions will see moderate to abundant amounts of rain in the coming days, adding to moisture collected in February following a heat wave.
Algeria is tendering for 80,000 tonnes of corn, while Iran and Taiwan are on the market for 120,000 and 65,000, respectively.
All three major U.S. WHEAT varieties saw their respective May contracts have modest gains, with Kansas City hard red wheat gaining the most.
In total, 327,300 tonnes of old crop U.S. wheat were sold for export last week, within trade expectations and up 40 per cent from the previous week. Net sales reductions of 5,200 tonnes of new crop wheat to Mexico were also reported.
Wildfires across parts of the Texas Panhandle and Oklahoma have spread to 850,000 acres. However, it is unknown how many wheat acres were affected.
Australia is on track for its third-warmest summer on record, according to its meteorological agency, with at least a 50 per cent chance of below-average precipitation in the country’s wheat and canola growing areas.
Russia estimated 3.8 million tonnes of wheat exports for February, a record for the month. The country’s agricultural minister also said it is not interested in renewing the Black Sea grain deal.
SOYBEANS alternated between gains and losses again, with the May and July contracts both losing 4.5 U.S. cents per bushel.
Nearly 160,000 tonnes of old crop U.S. soybeans were sold for export last week, near the lower end of trade estimates and down 30 per cent from the four-week average. Meanwhile, 456,200 tonnes of old crop soymeal were also sold, as well as 6,400 tonnes of new crop soymeal. As for old crop soyoil, 3,000 tonnes were sold.
Brazilian environmental agency Ibama ruled that thiamethoxam, a popular insecticide, cannot be sprayed by tractors or agricultural planes in the country. Farmers claim the decision will cause reduced crop yields, including those for corn and soybeans. Syngenta, which developed the chemical, said it is approved for use in 80 other countries including Canada.
