By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Oct. 24 (MarketsFarm) – ICE Futures canola contracts were stronger on Thursday, as rallies in global vegetable oil markets provided support.
Malaysian palm oil futures climbed to their highest levels in 16 months overnight on the back of solid export demand, with Chicago Board of Trade soyoil hitting fresh eight-month highs.
Solid demand from domestic crushers and favourable chart signals added to the firmer tone.
However, seasonal harvest pressure and increasing supplies in the commercial pipeline tempered the upside despite the persistent weather concerns in parts of Western Canada.
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About 49,276 canola contracts traded on Thursday, which compares with Wednesday when 33,878 contracts changed hands. Spreading accounted for 30,250 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were narrowly mixed on Thursday, as a rally in soyoil was countered by losses in soymeal.
The United States Department of Agriculture reported private export sales of 264,000 tonnes of U.S. soybeans to China this morning.
While the business was supportive, weekly export sales of just under half a million tonnes failed to live up to expectations that had ranged from about 800,000 to 1.6 million tonnes.
The International Grain Council forecast world soybean carryout stocks this marketing year at 32 million tonnes, which was down by six million from the September estimate and well off the 50 million tonne ending stocks for 2018/19
CORN was slightly softer on the day, as seasonal harvest pressure weighed on values.
Weekly U.S. corn export sales of about 580,000 tonnes were up from the previous week and in line with trade expectations.
The International Grain Council lowered its world corn ending stocks forecast for the 2019/20 marketing year by 8 million tonnes, to 278 million.
WHEAT futures were lower, as export demand failed to live up to expectations in the latest weekly USDA report.
Net weekly U.S. wheat export sales were disappointing at only 262,440 tonnes. However, wheat exports to date were still running about 26 per cent ahead of the previous year’s pace
The International Grain Council lowered its world wheat ending stocks forecast by 1 million tonnes, to 271 million, with a decline in Australian production behind the adjustment.
