By Marlo Glass, MarketsFarm
WINNIPEG, Dec. 19 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished stronger on Thursday, bouncing back from losses incurred yesterday.
Canola values were bolstered by strong trade activity and profit-taking ahead of the holidays. Canola has been supported by end of year short coverings, as there are only about half a dozen trading days left in the year.
Strong domestic crush margins have also supported canola prices. According to ICE, as of yesterday, crush margins are C$118 above the January contract.
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Strength in soy oil on the Chicago Board of Trade also supported canola values. One trader said that canola remains competitively priced and well-supported in comparison to other vegetable oils.
The Canadian dollar held steady at just over 76 U.S. cents at midday, keeping a lid on further gains.
On Thursday, 40,772 contracts were traded, which compares with Wednesday when 50,260 contracts changed hands. Spreading accounted for 38,106 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Thursday for the second consecutive day.
Soybeans were lower despite strong export data from the United States Department of Agriculture (USDA). According to last week’s export sales report, soybean exports were up by 36 per cent compared to the previous week, and 18 per cent above the four-week average. Soybean export sales totaled 1.43 million tonnes last week, which was higher than market expectations.
Additionally, the USDA reported a private export sale totaling 126,000 tonnes of soybeans, purchased by China this morning.
Soybean cake and meal sales totalled 83,000 tonnes, which was 65 per cent lower than the prior week and 53 per cent behind the four-week average. Soybean oil sales totaled 28,000 tonnes and were purchased primarily by Colombia.
South American growing conditions have improved slightly, which has kept pressure on soybean prices internationally. Rain in Argentina has alleviated some drought concerns.
CORN futures finished slightly lower today, despite export demand hitting highs for the marketing year. Last week, corn exports totaled over 1.7 million tonnes. That’s 96 per cent higher than the previous week and significantly higher than the four-week average.
WHEAT futures were higher on Thursday, supported by strong export demand. Exports also hit marketing year highs, totaling over 868,000 tonnes. That’s 73 per cent higher than the previous week and 95 per cent above the four-week average. Purchases were primarily made by the Philippines and Mexico. For this marketing year, wheat shipments are 18.5 per cent ahead of last year’s pace.
Internationally, Turkey may cut import taxes on wheat, due to low domestic supply and higher prices for Russian wheat.
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