By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 1 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures was on the upswing Monday, as demand fueled the increases with additional support from sellers content to stand on the sidelines. Tight canola supplies remained supportive.
While Chicago soyoil also pulled back from earlier increases, but remained in the green at the close. European rapeseed finished higher, while Malaysian palm oil along with Chicago soybeans and soymeal ended on a lower note.
Although the very sparsely traded November contract fell back today, it remained well over C$1,000 per tonne. The contract received its first notice of expiry on Friday and wraps up trading in two weeks.
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At mid-afternoon the Canadian dollar was slightly higher with the loonie at 80.84 U.S. cents, compared to Friday’s close of 80.75.
There were 18,380 contracts traded on Monday, which compares with Friday when 11,130 contracts changed hands. Spreading accounted for 11,124 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 970.20 up 10.40
Mar 946.10 up 7.80
May 914.90 up 6.20
Jul 872.60 up 4.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were a pinch lower on Monday, due to poor export movement.
The United States Department of Agriculture (USDA) reported a private sale of 132,000 tonnes of soybeans to China. Delivery is to be during the current marketing year.
The USDA said export inspections for the week ended Oct. 28 included 2.27 million tonnes of soybeans, down 11.5 per cent from the previous week. The year-to-date shipments of 10.86 million tonnes were down 36.7 per cent from this time last year.
Ahead of the department’s crop progress report, the trade predicts harvest progress at 81 per cent complete, up eight points from last week.
CBOT announced new daily limits with soybeans dipping from US$1 per bushel to 90 cents and the expanded limit at US$1.35/bu. Soymeal drops from US$30 per short ton to US$25, with an expanded limit at US$40/ton. The daily limit for soyoil increases from 3.5 cents per pound to four cents, with the expanded limit at 60/lb.
The Biden Administration announced the U.S. government will invest US$1 billion into biofuels over the next 10 years.
AgRural estimated soybean planting in Brazil to be 52 per cent complete, for the second fastest pace on record.
The Buenos Aires Grain Exchange (BAGE) placed Argentina’s soybean crop at 4.6 per cent planted.
CORN futures were higher on Monday caught up in spillover from sharp gains in the wheat complex.
At 619,340 tonnes, weekly inspections of corn were down 2.4 per cent from the previous week. The year-to-date shipments tallied 5.42 million tonnes, for a 21.5 per cent decline from last year.
The trade forecast harvest progress at three-quarters finished, up nine from last week.
CBOT will implement new daily limits for corn at 35 cents/bu., down from 40. The expanded limit will be 55 cents/bu.
China has forecast its 2020/21 corn production at 273 million tonnes, up four per cent from and year ago.
The BAGE pegged Argentina’s corn planting at 28 per cent in the ground.
WHEAT futures were stronger on Monday due to strong global demand and tight supplies.
U.S. wheat export inspections came to 115,341 tonnes, and down 41.6 per cent on the week. The year-to-date stood at 9.65 million tonnes, which was 15.4 per cent below that of a year ago.
Expectations for the winter wheat harvest are for 88 per cent done, with the crop condition at 48 per cent good to excellent.
CBOT will bump up the daily limit for Chicago and Kansas City wheats from 45 to 50 cents/bu, with an expanded limit of 60 cents/bu. There are no changes for Minneapolis wheat. The daily limit for oats doubles to 40 cents/bu, with an expanded limit at 60 cents/bu.
The European Union reported its 2021 wheat harvest came in at 130.3 million tonnes, 0.5 per cent below its September forecast. The step back was due to reduced production in France, Hungary and Romania.
The BAGE estimated the Argentine wheat harvest at 6.7 per cent complete. The exchange upped its production forecast by 3.1 per cent from last month at 19.8 million tonnes.
