WINNIPEG – The ICE Futures canola market continued to show weakness on Thursday, along with soybeans.
The United States Department of Agriculture released its monthly World Agricultural Supply/Demand Estimates earlier today. The report caused bearish action on the Chicago Board of Trade (CBOT), including a sharp drop in soybean prices which spilled over into canola.
Soymeal, European rapeseed and Malaysian palm oil were also mostly lower. However, gains in Chicago soyoil provided some support.
At mid-afternoon, the Canadian dollar was steady compared to Wednesday’s close.
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There were 26,679 canola contracts traded on Thursday, which compares with Wednesday when 34,458 contracts changed hands. Spreading accounted for 12,224 of the contracts traded.
The U.S. Department of Agriculture released its monthly World Agricultural Supply/Demand Estimates earlier today, creating a bearish reaction at the Chicago Board of Trade (CBOT).
The December CORN contract was lower on Thursday, erasing Wednesday’s gains. The contract also hit a low of US$4.6650 per bushel, its lowest price since Sept. 2021.
The USDA raised its 2023-24 corn production estimate by 170 million bushels to 15.234 billion, with ending stocks up 45 million bushels to 2.156 billion. Its world corn carryout projection increased 2.6 million tonnes to 315 million.
According to the USDA’s Weekly Export Sales report, 1.015 million tonnes of 2023-24 corn were sold during the week ended Nov. 2 at the higher end of trade estimates, up 36 per cent from the previous week and four per cent from the four-week average. In addition, 140,000 tonnes of 2024-25 corn were also sold to Mexico.
CONAB cut Brazil’s total corn production forecast by 338,000 tonnes to 119.07 million.
The January SOYBEAN contract suffered its largest drop since late September, while falling below the US$14.50/bu. mark.
The USDA raised its soybean production estimate by 25 million bushels to 4.129 billion, with ending stocks also up 25 million to 245 million. The world carryout estimate was down by 1.11 million tonnes to 114.51 million.
More than 1.08 million tonnes of 2023-24 U.S. soybeans were sold during the week ended Nov. 2, up seven per cent from the previous week and down eight per cent from the four-week average. In addition, 193,500 tonnes of 2023-24 soymeal were also sold, as well as 2,600 tonnes of soyoil.
The USDA confirmed today that China has recently purchased 1.04 million tonnes of soybeans.
CONAB raised its estimate for Brazilian soybean production by 417,000 tonnes to a record 162.42 million despite recent erratic weather.
All three major U.S. WHEAT varieties were in the red on Thursday, with Chicago wheat going down by the double digits.
The USDA left its wheat production estimate unchanged at 1.812 billion bushels, with ending stocks up 14 million at 684 million bushels. World carryout was up 560,000 tonnes to 258.69 million.
More than 354,000 tonnes of 2023-24 U.S. wheat were sold for export during the week ended Nov. 2, up 29 per cent from one week earlier but down 26 per cent from the four-week average.
The USDA’s attache in India cut the country’s wheat production forecast to 106 million tonnes.
The Rosario Grain Exchange cut its Argentine wheat production estimate by 800,000 tonnes to 13.5 million.
