By Glen Hallick, MarketsFarm
WINNIPEG, June 16 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were weaker on Thursday, caught up in a sell-off of vegetable oils.
Declines in Chicago soyoil and Malaysian palm oil weighed on values. However support came from increases in Chicago soybeans and soymeal. After choppy trading earlier today, global crude oil prices found tractions and were spilling over into veg oils.
Crop development on the western Prairies started putting pressure on canola. Recent rains have been beneficial to crops that were struggling in dry conditions. However, there has been flooding in some areas of Alberta with local states of emergency being declared.
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Saskatchewan reported province-wide spring planting reached 98 per cent complete. Areas of the eastern half of the province remain soggy and will result in acres going unseeded.
A sharp drop in the United States dollar has pushed the Canadian dollar higher. At mid-afternoon, the loonie was at 77.41 U.S. cents, compared to Wednesday’s close of 77.23.
There were 20,733 contracts traded on Thursday, which compares with Wednesday when 21,825 contracts changed hands. Spreading accounted for 11,128 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 1,073.50 dn 10.10
Nov 1,023.10 dn 13.90
Jan 1,028.20 dn 14.30
Mar 1,031.30 dn 13.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, as reports indicated that cash was now coming into oilseeds and grains following yesterday’s sharp interest rate hike by the United States Federal Reserve.
The U.S. Department of Agriculture (USDA) issued its export sales report for the week ended June 9, showing those for old crop soybeans were 317,200 tonnes with new crop at 407,600 tonnes. Soymeal export sales came to 256,300 of old crop an d 35,600 tonnes of new crop. Soyoil registered at 6,200 tonnes of old crop.
The U.S. markets will be closed on June 20 to mark Juneteenth, reopening that evening.
CORN futures were stronger as well on Thursday, also benefitting from that influx of cash.
Corn export sales amounted to a marketing year low of 140,900 tonnes of old crop, plus 138,900 tonnes of new crop.
The U.S. Corn Belt is expected remain hot and dry. An estimated 2,000 head of cattle have died in Kansas due to the heat and humidity.
WHEAT futures were also stronger on Thursday, in concert with soybeans and corn.
Export sales of wheat tallied 236,900 tonnes, according to the USDA.
The Oklahoma Wheat Commission placed the state’s winter wheat harvest at 55 per cent complete, with protein levels at 12 to 13 per cent.
In international wheat sales, Bangladesh cancelled its tender for 50,000 tonnes and Japan purchased 186,411 tonnes from Australia, Canada and the U.S.
The U.S. floated a plan to build temporary grain silos for Ukraine, just outside that country’s western borders. Ukraine has struggled to export its grain through other countries as its ports remain blockaded or occupied by Russian forces.
