Glacier FarmMedia MarketsFarm – The ICE Futures canola market continued upward on Thursday, adding to its momentum from Wednesday.
Chicago soyoil, European rapeseed and Malaysian palm oil were in positive territory. Crude oil gained approximately US$2 per barrel, lifted by Middle East tensions.
At mid-afternoon, the Canadian dollar was up one-tenth of a United States cent compared to Wednesday’s close.
Statistics Canada (StatCan) reported that canola stocks as of Dec. 31 were 12.851 million tonnes, a 1.3 per cent increase from the year before. The United States Department of Agriculture kept its estimate for 2023-24 Canadian canola production steady at 18.8 million after the release of its monthly supply/demand estimates earlier today.
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There were 81,222 canola contracts traded on Thursday, which compares with Wednesday when 92,532 contracts changed hands. Spreading accounted for 64,298 of the contracts traded.
The United States Department of Agriculture (USDA) released its February supply/demand estimates on Thursday, with ending stocks slightly raised for corn, soybeans and wheat.
The March SOYBEAN contract moved up in price for the third time in four sessions at the Chicago Board of Trade (CBOT) on Thursday. But despite surpassing the US$12 per bushel mark for the third straight day, the contract closed below it.
The USDA raised its estimate for 2023-24 soybean carryout by 35 million bushels at 315 million.
In total, 340,800 tonnes of 2023-24 U.S. soybeans were sold for export during the week ended Feb. 1, up sharply from the previous week. Also sold for export were 284,400 tonnes of 2023-24 soymeal, down 43 per cent from the week before, as well as 1,200 tonnes of 2023-24 soyoil.
Conab cut its forecast for Brazil’s soybean crop by 5.9 million tonnes at 149.4 million, while the USDA reduced its own estimate by one million tonnes at 156 million.
Canadian soybean stocks as of Dec. 31 were 3.8 million tonnes, up 9.8 per cent from the year before.
The March CORN contract fell for the fifth time in six sessions, hitting a new contract low of US$4.2975/bu.
The USDA increased its 2023-24 projected corn ending stocks by 10 million bushels at 2.172 billion.
Conab lowered its forecast for Brazilian corn production by 3.9 million tonnes at 113.7 million, while the USDA cut its estimate by three million tonnes at 124 million.
The USDA also reported 1.219 million tonnes of 2023-24 U.S. corn were sold for export during the week ended Feb. 1, up one per cent from the previous week.
StatCan reported 11.298 million tonnes of corn stocks as of Dec. 31, down 4.8 per cent from the year before, due to lower carry-in stocks and higher domestic use.
All three major U.S. WHEAT varieties suffered their worst one-day losses in at least a month. The March Chicago wheat contract fell below US$6/bu., while its Kansas City hard red counterpart came very close to doing the same.
Projected U.S. 2023-24 wheat ending stocks were raised 10 million bushels at 658 million, still the second-lowest total in 10 years.
The USDA also reported 378,400 tonnes of 2023-24 U.S. wheat were sold for export during the week ended Feb. 1, up 17 per cent from the previous week.
Canadian wheat stocks as of Dec. 31 declined 10.3 per cent year-by-year to 20.7 million tonnes, mainly due to lower production. Durum wheat stocks dropped 27 per cent to 2.96 million tonnes.
