WINNIPEG — The ICE Futures canola market settled with solid gains on Thursday, recovering from earlier losses as a rally in Chicago soyoil provided support. Weather uncertainty on the Prairies also boosted canola prices.
Chicago soyoil surged and European rapeseed showed strength, while Malaysian palm oil was lower. Crude oil also moved lower today on speculation the United States Federal Reserve is set for another interest rate hike.
At mid-afternoon, the Canadian dollar was up more than one-tenth of a United States cent compared to Wednesday’s close.
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About 45,010 canola contracts were traded on Thursday, which compares with Wednesday when 46,217 contracts changed hands. Spreading accounted for 36,590 of the contracts traded.
CORN prices recovered from Wednesday’s losses and added some more on the Chicago Board of Trade (CBOT), one day before the United States Department of Agriculture (USDA) releases its monthly World Agricultural Supply/Demand Estimates (WASDE).
For the week ended June 1, the USDA reported export sales for old crop corn at 172,700 tonnes, nearly 14,000 less than the previous week. For new crop, there were 106,800 tonnes of net cancellations compared to more than 312,000 tonnes of sales the week before. Mexico cancelled 120,000 tonnes of sales.
The trade expects the USDA to cut its production estimate for Argentine corn by two million tonnes to 36 million prior to Friday’s report, while raising Brazilian corn production one million tonnes to 131 million.
South Korea’s Major Feedmill Group purchased an estimated 132,000 tonnes of animal feed corn, likely from South America.
The July SOYBEAN made a modest gain for the third straight day while deferred were up by double-digits.
The USDA’s weekly export sales data showed more than 207,000 tonnes of old crop soybeans were sold for the week ended June 1, a five-week high. New crop sales totalled more than 264,500 tonnes for the week with most of the bookings going to China. Export sales for soymeal were 177,600 tonnes for old crop and 90,000 tonnes for new crop. As for soyoil, there were 300 tonnes of net cancellations for old crop and 100 tonnes of bookings for new crop.
The trade has projected the USDA to cut its Argentine soybean crop production estimate to 25 million tonnes, while leaving Brazil’s unchanged at 155 million.
Iran has tendered 120,000 tonnes of soymeal, likely from Brazil.
All three major U.S. WHEAT varieties bounced back from Wednesday’s losses.
The USDA reported that 234,800 tonnes of new crop wheat were sold for export for the week ended June 1, compared to more than 466,000 tonnes from the previous week. Most of the bookings went to Taiwan.
For the 2022-23 season, 17.76 million tonnes of U.S. wheat were exported according to the USDA.
Going into Friday’s USDA report, the trade pegged winter wheat production to increase by 13 million bushels to 1.672 billion.
Tunisia has tendered to buy 100,000 tonnes of soft milling wheat.
