By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 19 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were weaker on Thursday, as they followed steep losses in the Chicago soy complex and other comparable oils to the downside.
Prairie temperatures have begun to moderate and that cooling is to generate rainfall for the region. The greatest amounts of precipitation are to come in the eastern half over the weekend.
Continued uncertainty over this year’s canola crop and ever tightening supplies tempered further losses. Statistics Canada will take some of the guess work out of production estimates when it releases its principal field crops report on Aug. 30.
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Saskatchewan reported its province-wide harvest of all crops reached 20 per cent complete. That included spring wheat at 14 per cent finished and canola at four per cent complete. Previously Manitoba reported its harvest was 21 per cent done, while Alberta won’t have a crop report this week.
At mid-afternoon, the Canadian dollar was weaker, with the loonie tumbling to 78.01 U.S. cents compared to Wednesday’s close of 79.18.
There were 20,667 contracts traded on Thursday, which compares with Wednesday when 21,087 contracts changed hands. Spreading accounted for 8,492 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 890.80 dn 14.00
Jan 877.30 dn 13.20
Mar 859.30 dn 12.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were sharply lower on Thursday, as storm systems are to bring precipitation to the United States Midwest and Northern Plains over the next 10 days.
The U.S. Department of Agriculture (USDA) announced two private sales of soybeans, with 263,000 tonnes for China and 148,590 tonnes for Mexico. Delivery of both is to be during the upcoming marketing year.
In the USDA weekly export sales report, for the week ended Aug. 12, old crop soybean sales came to 67,700 tonnes for a drop of 30 per cent from the previous week, but in the middle of trade estimates. New crop sales were more than 2.14 million tonnes. Soymeal sales were split between 72,400 tonnes of old crop and 104,600 tonnes of new crop. Soyoil amounted to 500 tonnes of old crop and 100 tonnes of new crop.
The Pro Farmer Crop Tour found soybean pod counts in Illinois and Iowa were above each state’s three-year average. The tour continues in Iowa and Minnesota, wrapping up this evening.
CORN futures were weaker on Thursday, in sympathy with soybeans.
U.S. export sales of old crop corn dropped 43 per cent from the previous week at 216,500 tonnes, but exceeded market projections. Meanwhile new crop sales were 510,000 tonnes.
The PF tour estimated corn yields in Illinois to be 196.2 bushels per acre and 192.5 in Iowa.
The Buenos Aires Grain Exchange has projected the planted area for 2021/22 Argentina corn to increase 7.5 per cent at more than 17.54 million acres. The Rosario Grain Exchange came in lower at 16.80 million acres, while the USDA called for 15.44 million acres in its recent supply and demand estimates.
WHEAT futures were lower on Thursday, snagged in the downturn with soybeans and corn.
The USDA said wheat export sales were 306,700 tonnes, up five per cent from the previous week and midway with trade guesses.
Japan bought 143,765 tonnes of food wheat split between the U.S., Canada and Australia. Also, Japan still has tenders out for 80,000 tonnes of feed wheat and 100,000 tonnes of barley.
