By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 28 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures failed to recover from sudden losses on Monday, due to insufficient support from comparable oils.
While Chicago soybeans and soymeal were higher, soyoil was relatively steady. European rapeseed was slightly higher and there were small losses in Malaysian palm oil. Global crude oil prices were narrowly mixed, which provided little direction to the vegetable oils.
An analyst said the nearby November canola contract was inching up towards C$840 per tonne but needed more support from comparable oils.
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That said, the Canadian oilseed could get a boost out of tomorrow’s production estimates from Statistics Canada. The average trade guess pegged production for 2023/24 at 17.4 million tonnes versus the 18.8 million by Agriculture and Agri-Food Canada and the 19.0 million by the United States Department of Agriculture.
Crush margins continued to climb higher, further underpinning canola.
Alberta reported on Friday that its canola rated 42 per cent good to excellent and the oilseed’s harvest was just underway at one per cent complete.
The Canadian dollar was virtually unchanged at mid-afternoon Monday, with the loonie at 73.52 U.S. cents, compared to Friday’s close of 73.50.
There were 23,426 contracts traded on Monday, which compares with Friday when 25,913 contracts changed hands. Spreading accounted for 12,390 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 809.10 dn 2.20 Jan 815.80 dn 2.70 Mar 818.80 dn 2.20 May 817.40 dn 2.10
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, with modest increases for soymeal while soyoil was relatively steady.
The United States Department of Agriculture said soybean export inspections tallied 322,149 tonnes, a pinch higher than shipments last week, The year-to-date hit 51.87 million tonnes, 8.2 per cent lower compared to those from a year ago.
The USDA announced a private sale of 296,000 tonnes of old crop soybeans to unknown destinations.
The department is scheduled to release its crop progress report this afternoon and the trade is expecting a slight drop in soybean conditions.
First notice day at CBOT and ICE for all September futures is Aug. 31 with long positions to be reported after the close on Aug. 30.
The Buenos Aires Grain Exchange reported soy crush facilities in Argentina were running at 55 per cent of capacity due to reduced domestic supplies. That’s expected to fall to 30 per cent by December and lasting through to the 2023/24 harvest.
CORN futures were higher on Monday, as continuing dry weather was forecast for most of the western half of the U.S. Corn Belt.
The USDA reported corn export inspections of 597,144 tonnes was slightly lower than the outbound movements from the previous week. The year-to-date reached 36.78 million tonnes, but that’s down 32.6 per cent from the same time last year.
The department said there was a private sale for 123,000 tonnes of current crop corn to Mexico.
The trade projected a small decline in U.S. corn ratings.
A consultancy pegged Brazil’s second corn harvest at 83 per cent complete versus 89 per cent a year ago.
The BAGE forecast planted corn area in Argentina in 2023/24 to expand by almost three per cent at 16 million acres.
WHEAT futures were lower on Monday, with the winter wheats incurring double-digit losses.
U.S. wheat export inspections amounted to 390,364 tonnes and were higher than last week’s. The year-to-date of 4.03 million tonnes was behind the 5.13 million a year ago.
A report said the monsoons in India have produced far less rain than expected.
The European Union trimmed its call on wheat output by 300,000 tonnes at 126.1 million due to harvest delays.
There have not been any recent attacks on Ukrainian ports and no grain vessels have been stopped by Russian warships. There’s been speculation that Turkey and Russia could begin talks to help create a new Black Sea grain deal with Ukraine.
Russia reduced its wheat export tax from 4,270 rubles to 3,729.
Rain for Argentina has been forecast, which if it falls, would be beneficial to the country’s wheat crop.
