By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 4 (MarketsFarm) – Intercontinental Exchange canola futures closed lower on Monday, after giving up earlier gains.
Pressure on the Canadian oilseed came from sharp losses in Chicago soybeans, along with more modest setbacks in Chicago soyoil and soymeal, plus those in Malaysian palm oil. There was support for canola from increases in European rapeseed. Declines in global crude oil prices weighed on vegetable oil values.
Due to better than expected yields on the Prairies this harvest, Statistics Canada upped its call on canola production to 18.33 million tonnes from its September projection of 17.37 million. However, last year Canadian farmers reaped 18.69 million tonnes of canola.
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Australia upped its call on its canola output by 300,000 tonnes at 5.5 million tonnes. However, that new production figure was still down 33 per cent from last year.
Meanwhile, Strategie Grain bumped up its estimate of European Union rapeseed production by 200,000 tonnes to now 19.76 million tonnes and reduced its forecast on the EU’s sunflower harvest by 500,000 tonnes at 10.05 million.
The Canadian dollar was lower at mid-afternoon Monday with the loonie at 73.83 U.S. cents compared to Friday’s close of 74.04.
There were 52,514 contracts traded on Monday, which compares with Friday when 54,878 contracts changed hands. Spreading accounted for 36,898 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jan 677.10 dn 3.40 Mar 684.00 dn 4.20 May 691.70 dn 4.40 Jul 697.80 dn 4.90
SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, falling back from slight overnight increases.
The United States Department of Agriculture reported a private sale for 183,000 tonnes of old crop soymeal to the Philippines.
The USDA said soybean export inspections, for the week ended Nov. 30, were almost 1.11 million tonnes, down from the 1.57 million the previous week. Year-to-date inspections were 18.69 million tonnes, well behind last year’s 21.67 million.
AgRural cut its call on 2023/24 Brazil soybean production from 163.5 million tonnes to 159.1 million.
Brazil reported its November soybean exports jumped to nearly 5.20 million tonnes from 2.52 million the previous November.
Patria Agronegocios placed Brazil soybean planting at 83.3 per cent complete versus 93.4 per cent this time last year.
Ukraine said its total 2023/24 grain and oilseed harvest came to 56.3 million tonnes, of which 20.7 million tonnes were sunflower seeds.
Statistics Canada reported the country’s 2023/24 soybean crop is 6.98 million tonnes compared to the 6.54 million produced the year before. In September, StatCan projected this year’s crop at 6.72 million tonnes.
CORN futures were narrowly mixed on Monday, with small upticks in its mostly heavily traded contracts.
The USDA said there was a private sale for 267,000 tonnes of old crop corn to Mexico.
The department reported weekly U.S. corn inspections of approximately 1.16 million tonnes, well exceeding the previous week’s 408,885. The year-to-date reached 8.43 million tonnes and ahead of last year’s 6.50 million.
StatCan estimated Canada’s 2023/24 corn harvest at 15.08 million tonnes, an improvement over the previous year’s 14.54 million. Previously the federal agency placed corn at 14.93 million tonnes.
Ukraine’s 2023/24 grain exports tallied 13.4 million tonnes, down from last year’s 18.3 million. This year’s exports included 6.5 million tonnes of corn.
WHEAT futures were stronger on Monday, with double-digit increases in Chicago and Kansas City.
The USDA said there was a private sale for 440,000 tonnes of old crop soft red winter wheat to China.
The department reported U.S. wheat export inspections of 187,955 tonnes, down from the previous week’s 288,458. The year-to-date of 8.32 million tonnes lagged last year’s 10.92 million.
France said its soft wheat crop was 82 per cent planted with its winter barley at 92 per cent done. Heavy rains were said to be causing delays.
StatCan pegged Canada’s all wheat production in 2023/24 at 31.95 million tonnes, down from last year’s 34.33 million. In September, the federal agency forecast the wheat harvest at 29.83 million tonnes.
Ukraine said its cereal exports this year included 5.9 million tonnes of wheat and 876,000 tonnes of barley.
