By Glen Hallick, MarketsFarm
WINNIPEG, July 12 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures remained higher by the expanded daily of C$45 per tonne on Monday that also saw sparse trading volumes.
ICE further increased the daily limit to C$60 per tonne effective Tuesday.
The rising heat and dry temperatures across the Prairies continued to propel canola prices higher. Grave concerns over tightening supplies have kept price rationing in the market to curb demand.
There was additional support from strong increases in the Chicago soy complex as well as European rapeseed. Malaysian palm oil values experienced small declines.
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The United States Department of Agriculture (USDA) in its oilseed report cut its estimate of Canadian canola production from 2020/21 to 2021/22 by 5.9 per cent from its June report at 19.0 million tonnes. The USDA raised Canada’s exports by almost four per cent at 10.5 million tonnes. Ending stocks, which are somewhat higher than those from Agriculture and Agri-food Canada (AAFC), were increased 12.4 per cent at 1.18 million tonnes.
The Canadian dollar was relatively steady, with the loonie at 80.21 U.S. cents at mid-afternoon compared to Friday’s close of 80.15.
There were 7,329 contracts traded on Monday, which compares with Friday when 16,081 contracts changed hands. Spreading accounted for 2,092 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 889.00 up 45.00
Jan 881.30 up 45.00
Mar 869.40 up 45.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Monday, due to the drought across the Northern Plains and the July supply and demand report from the United States Department of Agriculture (USDA).
There were no major changes for 2021/22 soybeans in World Agricultural Supply and Demand Estimates (WASDE) from the June report. Compared to 2020/21, production is still expected to rise 6.5 per cent from at nearly 4.41 billion bushels, and ending stocks are to increase 14.8 per cent at 155 million bushels. There were no major month-to-month revisions for soymeal and soyoil as well.
For global numbers, the USDA edged up 21/22 soybean production 0.8 per cent at 385.52 million tonnes and the carryout is expected to rise 2.1 per cent at 94.49 million tonnes. The department kept its South American soybean production estimates at 52.0 million tonnes for Argentina and 144.0 million for Brazil.
The USDA issued its weekly export inspections report and for the week ended July 8, soybean exports slipped 3.5 from the previous week at 200,933 tonnes.
The department released its weekly crop progress report with soybean conditions holding from the previous week at 59 per cent good to excellent. As of July 11, soybeans blooming were at 46 per cent, up 17 points on the week and above the five-year average of 40 per cent.
CORN futures were also stronger on Monday, catching spillover from soybeans.
The USDA made a few changes for corn from its June report, with 21/22 production bumped up by 1.2 per cent at 15.17 billion bushels. The carryover is rise 5.2 per cent at 1.43 billion bushels.
World corn production for 21/22 is to bump slightly by 0.4 per cent at more than 1.19 billion tonnes, according to the USDA, with ending stocks nudging 0.6 per at 291.18 million tonnes. The department held its Argentina production estimate ay 51 million tonnes and 118 million for Brazil.
U.S. corn export inspections dropped 19.6 per cent on the week at 993,974 tonnes.
The USDA reported corn conditions gained a single point on the week at 65 per cent good to excellent. Corn silking rose 16 points at 26 per cent, four back of the average.
WHEAT futures were significantly higher as well on Monday, in sympathy with corn and soybeans.
Total wheat production is to pull back eight per cent, according to the USDA, at 1.75 billion bushels. The carryout is to fall 13.6 per cent at 664 million bushels.
On the world stage, the USDA trimmed almost 0.3 per cent from its wheat estimate at 792.4 million tonnes and cut global ending stocks by 1.7 per cent at 291.68 million tonnes.
The USDA reported wheat export inspections rose 17.3 from the previous week at 424,327 tonnes.
The department said spring wheat conditions held over the week at 16 per cent good to excellent. Spring wheat headed increased 14 points at 83 per cent, which is two ahead of the average.
Winter wheat harvested, according to the USDA was 59 per cent, for a gain of 14 on the week and six behind pace.
