By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 27 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Thursday, benefitting from spillover from the Chicago soy complex, and despite a rising Canadian dollar.
Chicago soybeans saw gains of about 17 cents per bushel, soyoil jumped a little more than a full penny, and soymeal was up well over US$3.00 per hundredweight.
A Winnipeg-based trader said there has been a great deal of spec money moving into the markets recently, pushing up prices. Also a decline in crop conditions in the United States, due to dryness, has also been supportive.
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There was additional support from increases in European rapeseed and Malaysian palm oil.
The trader noted there have been concerns on the Prairies regarding dryness, especially in Saskatchewan and Manitoba. In those provinces about two per cent of the canola has been harvested. As for Alberta, he said crop condition there have improved over the last month. The province’s crop report is scheduled to come out on Friday.
At mid-afternoon, the Canadian dollar was well above 76 U.S. cents, as the U.S. dollar remained weak. The loonie was at 76.24 U.S. cents, compared Wednesday’s close of 76.02.
There were 27,033 contracts traded on Thursday, which compares with Wednesday when 25,148 contracts changed hands. Spreading accounted for 13,314 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 497.20 up 3.60
Mar 511.00 up 3.00
May 516.00 up 2.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, on continued demand from China.
In the weekly export sales report from the U.S. Department of Agriculture (USDA) soybean sales for 2019/20 came to 50,400 tonnes and for 2020/21 sales topped 1.874 million tonnes. Old crop soymeal sales were 53,200 tonnes and new crop sales were 232,700 tonnes. Old crop soyoil sales amounted to 1,300 tonnes and 21,200 tonnes for new crop.
China said it wants to purchase 40 million tonnes of soybeans from the U.S. as a means to help fulfill its obligations outlined in the Phase One trade agreement.
The Brazil government announced it is eliminating tariffs of soybeans, corn, and rice as a means to fight inflation.
CORN futures were higher on Thursday, getting some spillover from soybeans.
The USDA announced two private sales of corn today, with 747,000 tonnes sold to China and 140,000 tonnes to unknown destinations. Delivery is to be during the 2020/21 marketing year.
Corn export sales came to 270,400 tonnes for old crop, which exceed market predictions. Sales for new crop were 1.180 million tonnes and were with in trade guesses.
U.S ethanol production increased by 5,000 barrels per day (BPD) to production reaching 931,000 BPD in a report issued yesterday. Inventories were up to 20.4 million barrels for an increase of 100,000.
The European Union dropped its corn import tariff to zero today. This came a day after the EU slashed the tariff from more than 5 Euros to 0.26 of a Euro.
China was selling about 3.547 million tonnes of corn from state reserves at auction today.
WHEAT futures were stronger on Thursday, benefitting from the weak U.S. dollar, remaining under 93.00 points on the U.S. Dollar Index.
The USDA report wheat export sales came to 764,100 tonnes.
Lower wheat production in the EU, along with a decline in exports from the multi-national bloc, provided sales opportunities for U.S. wheat.
