By Glen Hallick, MarketsFarm
WINNIPEG, May 7 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Thursday, due to gains in Chicago soyoil.
There were also increases in European rapeseed, but lower Malaysian palm oil weighed on values.
The Canadian dollar was stronger at 71.46 U.S. cents at mid-afternoon, compared to Wednesday’s close of 70.80.
A trader said today’s crop area and grains stocks as of March 31 reports from Statistics Canada had little effect on prices. The federal agency forecast a 1.6 per cent drop in canola acres at about 20.6 million. Canadian soybean acres were projected to fall 8.7 per cent at approximately 5.2 million.
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The trader took issue with the stocks report, noting Statistics Canada didn’t take in account the overwintered canola. However, he said that canola will be factored in future reports.
The agency said its next crop area report remains on schedule for June 29.
There were 15,011 contracts traded on Thursday, which compares with Wednesday when 15,043 contracts changed hands. Spreading accounted for 8,756 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 467.30 up 1.80
Nov 474.00 up 1.70
Jan 479.90 up 1.90
Mar 486.10 up 2.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Thursday, due to market optimism in the United States economic recovery.
In the weekly export sales report from the United States Department of Agriculture (USDA), old crop soybean sales were more than 653,100 tonnes for week ended April 30. The sales were down by 43 per cent from the previous week. New crop sales came to 177,500 tonnes. Export sales of soymeal were 131,400 tonnes of old crop and 39,800 tonnes of new crop. Soyoil sales came to 18,900 tonnes.
Ahead of the USDA monthly supply and demand report on May 12, market expectations are for Argentina soybean production to fall by 800,000 tonnes to 51.2 million. Brazil soybean production is expected from drop by 1.5 million tonnes to 123.0 million.
CORN futures were higher on Thursday on spillover from soybeans.
The USDA reported a private sale of 686,000 tonnes of corn to China. About 55 per cent is to be delivered in the current marketing year with the remainder in 2020/21.
Export sales of old crop corn were 774,600 tonnes, which were 43 per cent below the previous week’s sales, according to the USDA. New crop sales came to 97,500 tonnes.
Trade forecasts for next week’s supply and demand report pegged U.S corn production for 2020/21 at 400.0 million tonnes and global production at 1.15 billion tonnes.
WHEAT futures were higher on Thursday, as weather issues plague a number of key growing areas.
Dry conditions continue to threaten wheat crops in the U.S., Europe, Russia and the Black Sea region. As well, a cold snap in the U.S. and Canada this weekend could produce frost.
The USDA reported export sales of old crop wheat at 244,800 tonnes, for a drop of 48 per cent from the previous week. New crop wheat sales were 135,300 tonnes.
Trade predictions placed U.S. wheat production in 2020/21 at 50.29 million tonnes.
