By Glen Hallick, MarketsFarm
WINNIPEG, May 1 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were narrowly mixed on Monday, with modest gains in the old crop months, while the new crop positions were steady to lower.
Pressure on the Canadian oilseed not only came from declines in global crude oil prices, but also from the failure of the First Republic Bank in the United States. Although the Federal Deposit Insurance Corporation allowed JPMorgan Chase to acquire First Republic, the markets across the board were driven lower.
Support for canola came from a sudden turnaround in the Chicago soy complex, which had been falling back for most of today’s session. With May Day, there was no trading in European rapeseed and Malaysian palm oil.
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An analyst said the funds were building their short positions, including those in canola. As well, he suggested there is to be good planting progress across the Canadian Prairies, especially on drier western half of the region.
Crush margins bumped up, with the July positions moving to about C$206 per tonne above futures.
The Canadian dollar was higher at mid-afternoon Friday. The loonie was at 73.83 U.S. cents, compared to Friday’s close of 73.65.
There were 20,379 contracts traded on Monday, which compares with Friday when 34,158 contracts changed hands. Spreading accounted for 11,002 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Jul 704.60 up 1.20 Nov 682.60 unchanged Jan 688.30 dn 1.00 Jan 692.60 dn 0.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Monday, after spending most of the session on either side of steady.
The United States Department of Agriculture (USDA) issued its export inspections report for the week ended April 26, which placed soybean exports at 401,976 tonnes. That’s up about 6.4 per cent from the previous week, but down almost 34 per cent from the same week last year. The year-to-date rose to 47.45 million tonnes, compared to the 47.25 million this time last year.
The USDA reported 198.0 million bushels of soybeans were crushed in March, which was in line with market expectations, and more than the 193.0 million bushels crushed the previous March. That produced 1.81 billion pounds of refined soyoil, one per cent more than a year ago.
The department is scheduled to release its crop progress report at 3 pm CDT. Trade expectations pegged soybean planting at 17 per cent finished as of April 30. Last week seeding was at nine per cent complete.
The Chicago Mercantile Exchange (CME) upped the daily limit for soybeans by five cents at US$1.05 per bushel. The limit for soyoil was cut to four cents per pound, while that for soymeal is unchanged at US$30 per short ton.
Strategie Grains upped its call on the 2023/24 European Union rapeseed crop by 500,000 tonnes at 20 million, due to favourable crop conditions. Sunflower seed production was trimmed by 100,000 tonnes at 11.2 million.
WHEAT futures were weaker on Monday, due in part to weekend rains on the U.S. Midwest and Southern Plains.
While helpful to struggling winter wheat crops, the rain in some areas is a case of ‘too little, too late,’ as the crop is heading out. Nevertheless, a slight uptick in the winter wheat ratings is expected.
Wheat export inspections came to 358,273 tonnes, dipping 1.5 per cent from last week, but down 8.7 per cent from a year ago. The year-to-date tallied 18.25 million tonnes versus last year’s 18.77 million.
The CME reduced the daily limit on Chicago and Kansas City wheat by five cents at 60 cents/bu., which is now the same as Minneapolis.
CORN futures were slightly lower on Monday, caught between soybeans and wheat.
The USDA said corn export inspection amounted to 1.52 million tonnes, for a 62 per cent jump from a week ago. However, it’s down 10.5 per cent from inspections this time last year. The year-to-date reached 23.90 million tonnes, well under last year’s 36.61 million.
The department placed corn for ethanol production 490 million bushels in March, about four per cent less than a year ago.
Corn planted is projected to hit 27.0 per cent done, versus last week’s 14 per cent.
The U.S. Environmental Protection Agency (EPA) announced it will allow E15 blend gasoline during the summer months as a means to keep fuel prices lower.
The CME has kept the daily limit for corn at 45 cents/bu.
Brazil said it’s considering E30 gasoline blends, while the official standard is E27.
