By Glen Hallick, MarketsFarm
WINNIPEG, May 12 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were slightly lower on Thursday, as prices shifted to be more in line with product values.
Prices also closed well off of their daily lows, finding strength following the supply and demand estimates from the United States Department of Agriculture. The report generated some support for Chicago soybeans, but soyoil and soymeal remained on the downside.
Additional pressure on canola came from losses in European rapeseed and Malaysian palm oil. For the most part of today’s session, global crude oil prices were a pinch lower, which put a little bit pressure on edible oils.
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Planting progress in Saskatchewan gains 13 points on the week, to be at 14 per cent complete as of May 9.
Seeding through most of the soggy eastern half of the Prairies was minimal. Progress continued on the very dry western half, but with farmers hoping for rain to aid their crops.
The Canadian dollar was weaker at mid-afternoon, with the loonie at 76.49 U.S. cents, compared to Wednesday’s close of 77.10.
There were 12,825 contracts traded on Thursday, which compares with Wednesday when 15,670 contracts changed hands. Spreading accounted for 7,268 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 1,152.00 dn 0.30
Nov 1,087.90 dn 1.60
Jan 1,090.80 dn 1.10
Mar 1,088.80 dn 0.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Thursday, despite an increase in production for the new crop year.
The United States Department of Agriculture (USDA) issued its monthly supply and demand estimates, with soybean production for 2022/23 forecast to increase 4.6 per cent over last year at 126.28 million tonnes. That was above the average trade guess of 125.55 million tonnes.
For South America, the USDA estimated soybean production in Argentina for 2021/22 to drop 3.4 per cent at 42 million tonnes and left Brazil’s production at 125 million. CONAB also issued its S&D estimates today and raised its projection by more than 1.1 per cent at 123.83 million tonnes.
The USDA also released its export sales report and for the week ended May 5, old crop soybeans fell to a marketing year low of 143,700 tonnes. New crop sales came in at 77,300 tonnes. Soymeal sales comprised of 181,900 tonnes of old crop and 16,100 of new crop. Soyoil came in at 600 tonnes.
CORN futures were higher on Thursday, as less corn is to be harvested this fall.
U.S. corn production for 2022/23 is projected to drop 4.3 per cent at 367.30 million tonnes. The average market forecast was 375.25 million tonnes.
The USDA reported old crop corn export sales dropped to a marketing year low of 192,700 tonnes, with new crop at 46,600 tonnes.
The department kept its call on 2021/22 Brazil corn production at 116 million tonnes, while CONAB nudged up its forecast by 0.5 per cent at 116.19 million tonnes. The USDA held Argentina corn production at 53 million tonnes.
As for Ukraine, due to the ongoing Russian invasion, the USDA hacked its 2022/23 estimate by 53.6 per cent at 19.5 million tonnes.
The USDA announced a private sale of 612,000 tonnes of corn to China. Of the purchase, 11.1 per cent is old crop and remainder will be new crop.
WHEAT futures surged on Thursday, following the S&D report.
Total U.S. wheat production is estimated to expand five per cent at 47.08 million tonnes, coming well under the average trade prediction of 48.74 million.
The USDA chopped 35 per cent from its call on Ukraine’s wheat production for 2022/23 at 21.5 million tonnes.
The department said wheat sales bottomed out at a marketing year low of 14,100 tonnes old crop. New crop sales totaled 124,300 tonnes.
