By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 30 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished lower in volatile trading on Thursday. That included canola making double-digit gains before falling well back into the red, but its recovery was not to be.
This was largely guided by Chicago soyoil, which also incurred large increases, only to step back sharply, but managed to recover for a moderate gain. The wide movement was largely due to the quarterly grains stocks report from the United States Department of Agriculture.
Additional support came from higher Malaysian palm oil values, but this was countered by losses in European rapeseed as well as sharp downturns in Chicago soybeans and soymeal.
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Saskatchewan reported the harvest of its major crops reached 95 per cent finished, with canola at 92 per cent done. The combining of cereals and pulses was reported to be virtually complete.
At mid-afternoon the Canadian dollar was stronger with the loonie at 78.98 U.S. cents, compared to Wednesday’s close of 78.49.
There were 42,295 contracts traded on Thursday, which compares with Wednesday when 28,687 contracts changed hands. Spreading accounted for 15,817 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 893.50 dn 0.70
Jan 880.00 dn 3.00
Mar 865.60 dn 6.00
May 839.30 dn 7.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday, following the United States Department of Agriculture (USDA) quarterly grain stocks report.
The USDA said soybean stocks totaled 6.97 million tonnes versus the 14.28 million a year ago. Although dropping 51.6 per cent, the stocks came in above trade expectations.
The USDA issued its weekly export sales report and for the week ended Sept. 23 soybean sales were nearly 1.1 million tonnes, very close to the high side of trade guesses. Total soymeal sales were within in range at 229,700 tonnes, and soyoil sales of 28,400 tonnes were on the high side.
Several crushing facilities in China have shut down due to a series of power outages in the country. That has forced China to import more vegetable oil and the increased demand was supportive of prices.
CORN futures were slightly lower on Thursday, as its stocks were above what the trade called for.
In the grain stocks as of Sept. 1 report, corn registered at 31.41 million tonnes down 35.6 per cent from 2020.
Weekly export sales of corn amounted to 370,400 tonnes, somewhat below trade expectations.
WHEAT futures were stronger on Thursday, as its stocks came in below what the markets expected.
All wheat stocks were pegged at 48.44 million tonnes, down 17.5 per cent from this time last year. Durum stocks almost tallied 1.28 million tonnes, down 33.9 per cent.
In the USDA’s small grain summary, approximately 46.7 million acres of all wheats were planted in 2021, up 5.1 per cent from 2020. Yields fell from 49.7 bushels per acre last year to 44.3 this year. Total production in 2021 was 44.79 million tonnes, down nearly 10 per cent from 2020.
Wheat exports sales tallied 290,100 tonnes and at the low end of the spectrum.
