By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 31 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished weaker on Thursday, due to pressure from Chicago soyoil and the continuing Prairie harvest.
At the Chicago Board of Trade, soyoil lost almost a quarter of a cent, which helped to pull down canola values.
The Prairie harvest has continued despite difficult conditions. In Manitoba, the overall harvest reached 85 per cent complete, with canola at 90 per cent finished. In Saskatchewan, farmers hit 90 per cent done province-wide, with canola 88 per cent in the bin. Alberta releases its weekly crop progress report on Friday.
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The Canadian dollar was slightly lower by mid-afternoon Thursday at 75.93 U.S. cents, after closing Wednesday at 76.03.
There were 28,224 contracts traded on Thursday, which compares with Wednesday when 26,565 contracts changed hands. Spreading accounted for 23,612 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 446.40 dn 3.50
Jan 457.40 dn 2.20
Mar 466.80 dn 2.20
May 475.60 dn 1.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were steady to higher on Thursday, on improvements in export sales.
The United States Department of Agriculture (USDA) issued its weekly export sales report Thursday morning for the week ended Oct. 24. Soybeans for the 2019/20 marketing year came in at 943,600 tonnes. That’s a 99 per cent jump from last week, but a 39 per cent drop the four-week average. Trade expectations had been 500,000 to 1.1 million tonnes.
Shipments headed abroad amounted to 1.723 million tonnes, which was a gain of 25 per cent over the previous week and 63 points above the four-week average. Again China led the way with 536,000 tonnes.
Soymeal and cake export sales of 2019/20 came to 179,100 tonnes with 400 tonnes of 2020/21. Market predictions expected 100,000 to 250,000 tonnes. Meal/cake export shipments were 147,900 tonnes.
Soyoil export sales were 29,900 tonnes of 2019/20 and 200 tonnes of 2020/2021. Expectations were for zero to 24,000 tonnes. Soyoil exports were 9,700 tonnes.
The USDA reported the September crush amounted to 161.8 million bushels of soybeans. That’s down from the 177.5 million bushels in August, and under the 169.6 million in September 2018. Soyoil stocks slipped from 1.806 billion pounds in August to 1.792 billion for September.
Despite the Chilean president cancelling the APEC Summit that was to be in the capital of Santiago next month, the U.S. and China said they are pressing ahead with the signing of their partial trade deal. Chinese President Xi Jinping and U.S. President Donald Trump were to sign the trade pact at the summit. Massive anti-poverty demonstrations, which included violent clashes between police and demonstrators, led to the summit’s cancellation.
Also, on U.S./China trade, the latter will reportedly remove extra tariffs on imported U.S. farm products to help with the purchase of US$50 billion of such goods. The move would allow Chinese buyers to make purchases based on market conditions.
CORN futures were steady to lower on Thursday as export sales continue to lag well behind pace.
The USDA said export sales were 549,100 tonnes, which was a 12 per cent gain from last week and 29 per cent above the four-week average. Nevertheless, they stand at 65.5 per cent of this time last year. Export shipments amounted to 494,300 tonnes, for a small gain of one per cent and unchanged when compared to the four-week average.
Zimbabwe reported it requires 850,000 tonnes of corn following a severe drought. Approximately half of the country’s population is said to be in need of food aid.
WHEAT futures trade either side of steady on Thursday, with Chicago slightly lower and Kansas City and Minneapolis slightly higher.
The USDA reported wheat export sales of 493,800 tonnes, which was an 88 per cent increase from the previous week and 31 points higher than the four-week average. Also, the amount was near the top of market expectations. Export shipments tallied 422,500 tonnes, for a 15 per cent decrease from the previous week and 18 below the average.
Rain in Argentina proved to be too late to help with the country’s 2019/20 wheat crop. Agritrend reduced its projections from 21.0 million tonnes to a range of 19.0 million to 19.5 million, based on yields dropping by approximately 12.5 per cent.
Egypt, the world’s largest importers of wheat, indicated it has enough strategic reserves to last almost five months.
