By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 30 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures fell hard on Tuesday, due to profit-taking throughout the North American grain markets. Despite the sizeable losses, they managed to step away from larger declines.
A hefty downturn in Chicago soyoil along with significant pull backs in European rapeseed and Malaysian palm oil put pressure on canola. Also, sharp losses in global crude oil prices weighed heavily on edible oil values.
The markets will get some semblance of this year’s harvest when Statistics Canada issues its next crop report on Friday. Expectations are for canola and other major crops to see their production cut further from the federal agency’s September report.
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At mid-afternoon the Canadian dollar was lower, with the loonie at 78.20 U.S. cents, compared to Monday’s close of 78.34.
There were 29,731 contracts traded on Tuesday, which compares with Monday when 26,570 contracts changed hands. Spreading accounted for 14,592 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 987.10 dn 40.30
Mar 960.00 dn 38.10
May 924.20 dn 35.00
Jul 879.60 dn 35.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Tuesday, due to another round of profit-taking and concerns towards the Omicron strain of COVID-19.
The United States Department of Agriculture (USDA) announced a private sale of 132,000 tonnes of soybeans to unknown destinations. Delivery is to be during the current marketing year.
Ahead of the monthly U.S. crush report, trade expectations are pointing to the October crush coming in at 195.6 million bushels of soybeans, along with soyoil stocks of 2.34 billion pounds.
Dr. Michael Cordonnier maintained his calls on South American soybean production, with Brazil at 144 million tonnes and Argentina at 50 million. However, a La Nina could result in more dry conditions for both countries, threatening their crops.
The Brazilian National Energy Policy Council said it will lower the minimum biodiesel content from 13 to 10 per cent through 2022.
The Solvent Extractors’ Association of India pegged the country’s combined rapeseed and mustard crops at 10 million tonnes for 2021/22. That would be an increase of 16 per cent over last year.
CORN futures were weaker as well on Tuesday, caught up in the general downturn.
Due to dryness in Rio Grande do Sul, Cordonnier trimmed one million tonnes off of his projection for corn production in Brazil, now at 117 million tonnes. He kept his projection for Argentine corn production at 53 million tonnes.
WHEAT futures were down hard on Tuesday, taking hits from profit-taking and the Omicron variant.
March oat futures fell to their daily limit of 40 cents per bushel.
In the final crop progress report for 2021, the USDA said winter wheat rated 44 per cent good to excellent condition as of Nov. 28. That’s a hold from the previous week and one point above the five-year average. About 92 per cent of the crop was emerged, which was one point above the five-year average. The department will resume its weekly reports on April 4.
Egypt purchased 600,000 tonnes of wheat to come from Romania, Russia and Ukraine.
Ahead of the next Statistics Canada report on Dec. 3, market expectations are suggesting total wheat production in Canada this year to be at least one million tonnes less than the 21.72 million the federal agency predicted in its previous report.
Although Australia is on course for a record wheat harvest of 34.4 million tonnes, concerns in the market about the quality of the country’s milling wheat have persisted.
