By Glen Hallick, MarketsFarm
WINNIPEG, June 2 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) fell back on Thursday, after failing to recover from larger losses earlier in the session.
The declines in the Canadian oilseed came despite ample support from strong upticks in the Chicago soy complex, especially in soyoil. Malaysian palm oil was up as well, but European rapeseed was narrowly mixed. Moderate increases in global crude oil prices provided spillover to vegetable oils.
A trader said while the canola market has been erratic, it’s trying to make its way to “more comfortable and more workable levels.” The oilseed was significantly lower than product values, but crush margins made decent advances so far this week.
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The western Prairies continued to struggle with drought, with crops becoming in dire need of sufficient rainfall. Meanwhile the eastern Prairies remained very wet, with seeding progress much slower than in the drier west.
As the United States dollar lost ground, the Canadian dollar was pushing higher at mid-afternoon. The loonie rose to 79.54 U.S. cents, compared to Wednesday’s close of 79.12.
There were 22,003 contracts traded on Thursday, which compares with Wednesday when 20,454 contracts changed hands. Spreading accounted for 10,884 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 1,141.90 dn 11.40
Nov 1,041.40 dn 13.40
Jan 1,045.80 dn 12.30
Mar 1,047.20 dn 10.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, due to higher crude oil prices and a sizeable private sale,
The United States Department of Agriculture (USDA) announced a private sale to Pakistan for 55,000 tonnes of old crop soybeans and 297,000 of new crop.
Due to Memorial Day, the department’s export sales report has been postponed to Friday. Trade expectations pegged old crop soybean sales at 100,000 to 400,000 tonnes and new crop sales at 100,000 to 600,000 tonnes. Soymeal sales were estimated to be 100,000 to 320,000 tonnes. Soyoil was forecast to between a net reduction of 40,000 tonnes to sales of 10,000 tonnes.
In the USDA fats and oils report, 180.89 million bushels of soybeans were crushed in April. That’s a 6.5 per cent gain over last year’s April crush. At this point of the 2021/22 marketing year more than 1.49 billion bushels of soybeans have been crushed. Soyoil stocks were up from April to April by 11.3 per cent at 2.42 billion pounds.
WHEAT futures improved on Thursday, regaining some of the steep losses incurred so far this week.
Market predictions put old crop wheat between net cancelations of 50,000 tonnes to sales 100,000 tonnes. Export sales of new crop wheat were projected to be 200,000 to 350,000 tonnes.
The Ukrainian Grain Association upped their call on the country’s wheat production by 5.5 per cent at 19.2 million tonnes. However, that would be 42 per cent less than the 2021/22 harvest. The association predicted wheat exports of 10 million tonnes in 2022/23 compared 17 million the previous year.
Although the United Nations reported some progress in talks between Russia and Ukraine in allowing the latter to export grain out of its ports, Russia has kept its key demand that international sanctions against it be lifted first. Turkey announced it might assist in the clearing of sea mines, but expressed some reservations for such an undertaking.
Egypt purchased 465,000 tonnes of wheat from Romania, Bulgaria and Russia.
CORN futures were narrowly mixed on Thursday, unable to acquire sufficient traction.
The U.S. Energy Information Administration reported average ethanol production for the week ended May 27 was 1.07 million barrels per day, up slightly from the previous week. Ethanol stocks lost 751,000 barrels to bring it down to 22.96 million barrels.
Trade expectations for corn export sales came in at 125,000 to 400,000 tonnes of old crop, along with 100,000 to 300,000 tonnes of new crop.
The Ukrainian Grain Association forecast 2022/23 corn production at 26.1 million tonnes. While that’s up 13 per cent from last month’s projection, it’s still 38 per cent lower than last year’s output.
The United Kingdom approved legislation to allow corn oil to be substituted for sunflower oil without any changes to labeling, citing tight supplies due to the Russia-Ukraine war.
