By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 21 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures dropped back on Thursday, most likely due to profit-taking according to a trader.
Canola prices rallied for several days after they had been in a trading range for a number of weeks. The trader stressed the Canadian oilseed will need to remain expensive when going through the upcoming winter.
There were also sharp downturns in the Chicago soy complex, European rapeseed and Malaysian palm oil. The latter two retreated from recent contract highs.
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ICE canola mixed at midday Friday
Glacier FarmMedia —The ICE Futures canola market was narrowly mixed at midday Friday, consolidating near unchanged to end the week….
Agriculture and Agri-Food Canada issued its monthly supply and demand estimates and the trader suggested that exports of 6.5 million tonnes are too high, while domestic use of 7.7 million tonnes is too low. He said AAFC’s estimate of almost 12.8 million tonnes of canola produced this year is probably quite close to what came off of the Prairie fields.
Statistics Canada will issues its survey-based production report on Dec. 3.
The trader noted that Australia is set to export a record 4.5 million tonnes of canola this year. However, he said the extra 1.5 million the country is to put on the global market will have little impact on prices.
At mid-afternoon the Canadian dollar was lower with the loonie at 80.78 U.S. cents, compared to Wednesday’s close of 81.11.
There were 31,106 contracts traded on Thursday, which compares with Wednesday when 36,030 contracts changed hands. Spreading accounted for 23,342 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 937.40 dn 11.90
Jan 927.40 dn 17.20
Mar 912.30 dn 15.00
May 886.90 dn 13.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday, due to pressure from Malaysian palm oil and other edible oils.
The United States Department of Agriculture issued its weekly export sales report and for the week ended Oct. 14 soybean export sales were nearly 2.88 million tonnes, which exceeded trade expectations. Soymeal export sales total 246,500 tonnes along with 3,100 tonnes of soyoil.
Argentina said its soybean growers have sold 31.9 million tonnes of the harvested soybean crop. That’s down 4.8 per cent from a year ago.
The International Grains Council released its monthly supply and demand report, which showed global ending stocks for 2021/22 slipping 1.05 per cent from last month’s report at 169.6 million tonnes. The IGC bumped the world’s total supply by 0.6 per cent at 436.2 million tonnes.
CORN futures were lower on Thursday, caught in the spillover from soybeans
The USDA reported weekly corn export sales of more than 1.27 million tonnes, which were towards the high end of expectations.
Mexico announced it will not block imports of GMO corn from the U.S. However, the national government will ban the growing of GMO corn in Mexico.
Strategie Grains increased its call on European Union corn production four per cent at 67.5 million tonnes, but cut exports 3.5 per cent at 13.9 million tonnes.
Compared to last month, the IGC raised the global supply of corn for 2021/22 by a little more than 0.2 per cent at nearly 1.47 billion tonnes. Ending stocks were increased 2.8 per cent at 178.3 million tonnes.
WHEAT futures were also down on Thursday, in sympathy with soybeans and corn.
U.S. wheat export sales for the week were 362,400 tonnes, which fell within market projections.
The USDA attaché in Egypt cut that country’s wheat imports by 4.6 per cent at 12.4 million tonnes and maintained domestic production at nine million tonnes.
At 129.5 million tonnes, Strategie Grains trimmed 3.1 per cent off of the EU’s soft wheat production, while the consultancy raised imports 3.2 per cent at 32 million tonnes.
In the monthly supply and demand report from Agriculture and Agri-Food Canada (AAFC), wheat ending stocks were cut by 500,000 tonnes from last month to now 3.45 million. The carryover for 2020/21 was almost 5.71 million tonnes.
In the IGC’s October report it raised the world wheat carryover 1.8 per cent from last month at 193 million tonnes and kept the global supply at 1.06 billion tonnes.
