By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 12 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished lower on Thursday, in trade that saw prices spike upward following the release of the United States Department of Agriculture (USDA) supply and demand report, but only to fall back. However, contracts remained well off their earlier lows.
The Chicago soy complex was relatively steady and provided little direction for canola by the end of the day. Support came from gains in European rapeseed, while lower Malaysian palm oil weighed on the values. Lower ICE crush margins also added pressure on canola.
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Prairie temperatures are forecast to begin their climb towards 30 degrees Celsius by the weekend. Temperatures will then moderate, with some possibility of rain next week.
The weekly Saskatchewan crop report stated that seven per cent of the province’s total crops have been harvested. However, the report noted that no canola had yet to be combined.
At mid-afternoon, the Canadian dollar was lower, which helped to temper losses in canola. The loonie was at 79.80 U.S. cents compared to Wednesday’s close of 79.96.
There were 14,731 contracts traded on Thursday, which compares with Wednesday when 14,871 contracts changed hands. Spreading accounted for 7,842 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 889.00 up 10.70
Jan 877.60 up 13.20
Mar 862.50 up 12.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly higher on Thursday, following the release of the World Agricultural Supply and Demand Estimates (WASDE) from the United States Department of Agriculture (USDA). The soy complex spiked shortly after the report, but pulled well away from its highs.
The USDA trimmed soybean production for 2021/22 by 1.5 per cent at 118.09 million tonnes, but kept ending stocks at 4.22 million tonnes.
The department reported another private sale of 132,000 tonnes of soybeans to China, for third such sale this week. Also, there’s a sale of 198,000 tonnes of soybeans to unknown destinations. Deliveries of both are to be during the 2021/22 marketing year.
And the USDA issued its weekly export sales report, which show for the week ended August 5 that old crop soybean sales were 96,900 tonnes plus new crop sales of more than 1.22 million tonnes. Soymeal export sales were 116,300 tonnes of old crop and 268,300 tonnes of new crop. Soyoil sales amounted to 300 tonnes.
The U.S. Midwest has been forecast to receive scattered showers, which for those areas that receive rain will be something of a boost to podding soybeans.
China closed the Meishan terminal at its Ningbo port after a report of COVID-19. The port accounts for 25 per cent of Ningbo’s traffic.
CORN futures were stronger on Thursday, due to the USDA report.
Corn production for 2021/22 was cut 2.7 per cent by the USDA at 374.67 million tonnes, with the carryout slashed 13.3 per cent at 31.55 million.
The department cited old crop corn export sales of 377,600 tonnes and new crop sales of 601,800 tonnes.
The Eastern U.S. Corn Belt received rain overnight, with parts of Michigan getting up to three inches.
WHEAT futures were also stronger on Thursday, because of the report.
Total U.S. wheat production for 2021/22 was reduced 2.8 per cent by the USDA at nearly 46.18 million tonnes, with the carryover cut 5.7 per cent at 17.06 million.
The department said wheat export sales for 2021/22 came to 293,100 tonnes.
Strategie Grains trimmed 1.1 per cent off its forecast for European Union soft wheat production in 2021/22 at 131.5 million tonnes. However, the consultancy raised its call on the EU’s soft wheat exports by 5.5 per cent at 32.7 million tonnes.
