By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures couldn’t hang on to small gains Thursday, after attempting to recover from a series of losses.
The United States Department of Agriculture’s prospective plantings report and the report on grain stocks as of March 1 seemed to have something of a positive effect on the markets, with spillover finding its way into canola.
While support for the Canadian oilseed came from moderate upticks in Chicago soyoil, losses in soybeans and soymeal, weighed on values. Added pressure came from declines in European rapeseed and Malaysian palm oil. However, increases in global crude oil prices tried to cap further decreases in the oilseeds.
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The Canadian dollar was higher at mid-afternoon Thursday, with the loonie at 73.84 U.S. cents, compared to Wednesday’s close of 73.60.
There were 43,635 contracts traded on Thursday, compared to Wednesday when 52,945 contracts changed hands. Spreading accounted for 26,070 contracts traded.
The North American markets will be closed tomorrow for Good Friday.
Prices are in Canadian dollars per metric tonne:
Price Change Canola May 626.40 dn 0.80 Jul 636.10 dn 1.00 Nov 645.10 dn 0.20 Jan 652.20 dn 0.20
SOYBEAN futures at the Chicago Board of Trade were slightly lower on Friday, following a series of reports from the United States Department of Agriculture.
The USDA issued its prospective plantings report for 2024, which forecast soybean acres at 86.5 million. That’s almost on par with the average trade guess of 86.7 million acres and one million less than the USDA predicted at its Outlook Forum in February. Last year, U.S. farmers seeded 83.6 million acres of soybeans.
Also, the USDA released its report on grain stocks as of March 1, with total on-farm and commercial stocks at 1.85 billion bushels, up nine per cent from a year ago. The average trade guess called for 1.84 billion bushels.
The department reported export sales of soybeans for the week ended Mar. 21 included 263,900 tonnes of old crop and 120,000 tonnes of new crop. While old crop sales were below trade expectations, those for new crop were higher.
Soymeal export sales were comprised of 127,300 tonnes of old crop and 1,200 of new crop. The old crop sales came in below trade guesses. Soyoil sales were 6,000 tonnes of old crop and within expectations.
The U.S. Department of Energy announced it will add 2.8 million barrels of oil for the country’s Strategic Petroleum Reserve.
Agroconsult increased its call on the Brazil soybean crop from 152.2 million tonnes to now 156.5 million.
CORN futures were stronger on Friday, after the USDA projected a decline in planted acres.
The department placed this spring’s corn acres at 90 million. That’s not only below the average trade guess of 91.8 million acres, but also under the 91 million at the Outlook Forum and the 94.6 million seeded last year.
Total U.S. corn stocks tallied 8.35 billion bushels, for a 13 per cent increase from this time last year, but just under the average trade guess of 8.45 billion bushels.
Export sales of U.S. corn tallied 1.21 million tonnes of old crop and 126,400 tonnes of new crop. Both were within trade guesses.
South Korea bought 126,000 tonnes of corn.
WHEAT futures were mixed on Friday, with a loss for Minneapolis and gains for Chicago and Kansas City.
The USDA projected total planted wheat acres at 47.5 million for 2024/25, a pinch higher than the average trade guess of 47.3 million but lower than the 49.6 million sown last year. The department forecast 24.3 million acres of Hard Red Winter Wheat, 6.26 million of Soft Red Winter, 3.59 million of White Winter, and 11.3 million of spring wheat. The latter exceeded market expectations of 10.9 million acres. Durum acres were projected to be 2.03 million, up 22 per cent from last year.
Total U.S. wheat stocks added up to 1.09 billion bushels, rising 16 per cent from a year ago, and higher than the average trade guess of 1.05 billion bushels and the 1.04 billion last March. Durum stocks were placed at 36.6 million bushels, up two per cent from a year ago.
U.S. wheat export sales were 339,600 tonnes of old crop and 212,800 tonnes of new crop, and both were within market projections.
The European Union projected a four per cent decline in its planted wheat acres in 2024/25, for its smallest crop since 2020/21.
Saudi Arabia issued a tender for 595,000 tonnes of wheat.
