By Glen Hallick, MarketsFarm
WINNIPEG, May 27 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were stronger on Thursday, bouncing back after a several days of declines in which canola became oversold.
The old crop July contract peaked at its daily limit of C$30 per tonne before it settled back a little.
Overnight frosts threatening Prairie crops contributed to the gains in canola as well.
As did sharp increases in the Chicago soy complex and in European rapeseed. Moderate declines in Malaysian palm helped to temper those gains.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
Also trying to ease the upticks in canola was a resurgent Canadian dollar. At mid-afternoon the loonie was at 82.86 U.S. cents compared to Wednesday’s close of 82.58.
There were 24,936 contracts traded on Thursday, which compares with Wednesday when 21,320 contracts changed hands. Spreading accounted for 7,870 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 886.70 up 24.40
Nov 716.60 up 25.30
Jan 715.40 up 25.70
Mar 706.30 up 25.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, taking their cue from sharp gains in corn.
The United States Department of Agriculture (USDA) reported export sales of old crop soybeans were 55,900 tonnes for the week ended May 20. That’s a drop of 34 per cent from the previous week. New crop sales totaled 248,300 tonnes. Soymeal export sales came to 197,400 tonnes of old crop and 76,900 tonnes of new crop. Soyoil export sales were 1,700 tonnes.
Rains this week in the major U.S. growing areas were reported as beneficial to all crops; however the topsoil in Missouri is saturated at 42 per cent surplus with more precipitation on the way.
As new trade talks continue between the U.S. and China, the latter has fallen short of its Phase One trade agreement obligations. According to the U.S., China attained 79 per cent of its purchases, but China’s numbers claim they made 87 per cent of its purchases.
The International Grains Council (IGC) issued its monthly grain market report, with global soybean production remaining at 383 million tonnes and a slight increase to ending stocks at 51 million tonnes.
CORN futures skyrocketed Thursday on its way to its daily limit of 40 cents per bushel in the July contract, due to export demand, technical buying and short covering.
The USDA reported old corn export sales of 555,900 tonnes, plus more than 5.69 million tonnes of new crop. China accounted for 99.2 per cent of the week’s new crop tally.
The department reported a private sale of 152,400 tonnes of corn to unknown destinations. Delivery is to be during the 2021/22 marketing year.
Workers at the Port of Rosario in Argentina called off their strike after one day. The two-day strike was in protest over the country’s slow pace of COVID-19 vaccinations and the low priority for shots given to the workers.
The IGC bumped up global corn production by 0.17 per cent at 1.194 billion tonnes and trimmed the carryover by 1.1 per cent at 261 million tonnes.
WHEAT futures vaulted higher on Thursday, also on spillover from corn, as well as ongoing concerns about dry conditions across the U.S. Northern Plains.
With the 2020/21 wheat marketing year soon ending, the USDA said old crop export sales dropped 76 per cent at 29,500 tonnes. New crop sales came in at 373,800 tonnes.
Despite trade expectations for record high global wheat production, the IGC held its forecast at 790 million tonnes. However, the council cut nearly 3.4 per cent off of the carryout at 288 million tonnes due increased exports and consumption.
In international purchases, Saudi Arabia issued a tender for 720,000 tonnes of wheat, while Japan purchased 124,620 tonnes from the U.S. and Canada.
