By Glen Hallick, MarketsFarm
WINNIPEG, Dec 5 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher on Monday as they continued to garner support from last week’s Statistics Canada report that was bullish on the oilseed.
The report cut canola production for 2022/23 from 19.10 million tonnes to 18.17 million.
Although there was a measure of support from Chicago soymeal, soybeans finished a pinch lower after a day of choppy trading while there were sharp drops soyoil. Modest increases in European rapeseed and Malaysian lent spillover to canola. A growing downturn in global crude oil prices was putting pressure on vegetable oils.
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While canola crush margins remain quite large, they have pulled back over the last week, taking away a little bit of support.
As the United States dollar was on the rise, the Canadian dollar was weaker at mid-afternoon. The loonie slid to 73.52 U.S. cents, compared to Friday’s close of 74.25.
There were 39,603 contracts traded on Monday, which compares with Friday when 39,870 contracts changed hands. Spreading accounted for 24,574 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Jan 859.00 up 9.70 Mar 850.00 up 8.30 May 853.90 up 9.10 Jul 857.50 up 9.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were a pinch lower on Monday, after bouncing back and forth either side of steady.
The United States Department of Agriculture (USDA) announced a private sale of 130,000 tonnes of current crop soybeans to China.
The USDA released its export inspections report for the week ended Dec. 1. Soybean exports exceeded 1.72 million tonnes, down 22.7 per cent from the previous week. The year-to-date exports tallied 6.34 million tonnes, almost 11 per cent behind those this time last year.
The department is scheduled to issue its December supply and demand estimates on Friday. Trade expectations suggest the report is very likely to have little effect on the CBOT.
Consultancies StoneX and Datagro increased their calls on the 2022/23 Brazil soybean crop. StoneX now sits at 155 million tonnes and Datagro climbed to 153.3 million. Reports said soybean planting in Brazil reached 91 per cent complete, a few points behind the same time last year.
CORN futures were lower on Monday, following crude oil to the downside.
Outbound movements of U.S. corn amounted to 524,313 tonnes, jumping 67.5 per cent on the week. However, at 6.34 million tonnes the year-to-date was 32.7 per cent behind exports a year ago.
The trade projections suggested there could be a reduction in U.S. corn exports in Friday’s report.
The G-7 and European Union imposed their cap today on Russian oil prices at US$60 per barrel.
StoneX upped its forecast on the 2022/23 Brazil corn crop to 130.3 million tonnes.
WHEAT futures were weaker on Monday due a sell-off.
Wheat inspections were up 17.6 per cent at 334,653 tonnes. The year-to-date of 10.91 million tonnes was 2.2 per cent less than shipments a year ago.
The National Oceanic and Atmospheric Administration (NOAA) has called for precipitation for most of the continental U.S. over the next six to 10 days. However, areas along the U.S. southern coast are to remain dry.
Reports said Ukraine’s wheat crop is about half of what it was prior to the Russian invasion.
