By Glen Hallick, MarketsFarm
WINNIPEG, July 15 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished stronger on Thursday, getting support from gains in Chicago soyoil, European rapeseed and Malaysian palm oil.
The ongoing drought across the Prairies remained supportive of canola as well. Temperatures throughout the region are to rise to the low to mid-30 degrees Celsius, with very little rain in the forecast.
The Canadian dollar was significantly weaker at mid-afternoon, with the loonie at 79.29 U.S. cents compared to Wednesday’s close of 80.02.
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By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were stronger on Thursday, in gleaning support…
There were 17,125 contracts traded on Thursday, which compares with Wednesday when 25,292 contracts changed hands. Spreading accounted for 4,256 contracts traded.
ICE raised the regular daily limit of canola to C$50 per tonne from $30, which took effect today.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 912.10 up 18.60
Jan 897.60 up 13.50
Mar 880.30 up 11.30
May 860.30 up 11.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were steady to lower on Thursday, following poor export sales numbers from the United States Department of Agriculture (USDA).
For the week ended July 8, the USDA said old crop soybean sales dropped 66 per cent from the previous week at 21,700 tonnes, while new crop sales tallied 290,800 tonnes. Also, old crop soymeal export sales fell by two-thirds at 70,700 tonnes as new crop sales amounted to 126,400 tonnes. Soyoil incurred a net reduction of 900 tonnes.
The National Oilseed Processors’ Association (NOPA) released its monthly soybean crush report, showing the June crush came in at 152.41 million bushels. That’s well short of average trade predictions of 159.8 million bushels and 6.5 per cent under the May crush. Soyoil stocks were down 8.3 per cent from May at 1.54 billion pounds.
China reports that its pork output rose 36 per cent from a year ago at more than 27 million tonnes. The increase in hog production could mean China increasing its soybean imports after the industry was devastated by African swine fever.
CORN futures were down on Thursday, also due to weak export sales.
The USDA said old crop corn sales were down 20 per cent on the week at 138,800 tonnes. New crop came in at 133,200 tonnes.
Near record low water levels on the Parana River in South America have caused trouble for vessels, especially those transiting to and from Argentina’s Port of Rosario. Severe drought continued to hamper the Brazil corn crop.
WHEAT futures were stronger on Thursday, with double digit gains for Chicago, Kansas City and Minneapolis.
As rainfall disrupted the U.S. winter wheat harvest, ongoing drought in the Northern Plains will curtail spring wheat production.
Wheat export sales were strong at 424,700 tonnes, according to the USDA.
Egypt, the world largest wheat importer, was reported to be 22 per cent behind its intake compared to a year ago.
Strategie Grains raised its projections for the 2021/22 European Union soft wheat crop by 1.4 per cent from June to now 133 million tonnes. The consultancy estimated export to rise 8.4 from last month’s forecast to 31 million tonnes.
Citing favourable weather, the Rosario Grain Exchange increased its call on the 2021/22 Argentina wheat by 2.5 per cent at 20.5 million tonnes.
