By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 13 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures incurred losses in the old crop months on Friday, giving up the gains generated by yesterday’s reports from the United States Department of Agriculture.
A trader noted that despite increases due to those USDA reports, the oilseed market remained rangebound. He said that in light of the rain in Argentina, it hasn’t put much pressure on oilseeds.
Canola did get support from upticks in Chicago soybeans, but losses in soyoil and soymeal weighed on values. More pressure came from declines in European rapeseed and Malaysian palm oil. Gains in global crude oil prices tried to temper further pull backs in vegetable oils.
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Although there was slow grain movement during the week ended Jan. 8, the Canadian Grain Commission reported year-to-date producer deliveries of canola, as well as the oilseed’s exports and domestic usage were ahead of this time last year. However, the trader suggested that come the end of the marketing year, canola ending stocks could increase.
The Canadian dollar was slightly lower at mid-afternoon Friday, with the loonie at 74.66 U.S. cents compared to Thursday’s close of 74.75.
There were 34,094 contracts traded on Friday, which compares with Thursday when 42,933 contracts changed hands. Spreading accounted for 28,528 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Mar 840.00 dn 2.40 May 839.70 dn 1.30 Jul 841.30 dn 0.70 Nov 819.00 up 3.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Friday, in positioning ahead of the markets being closed on Monday for Martin Luther King Day.
Prior to the United States National Oilseed Processors’ Association (NOPA) monthly report on Tuesday, the average trade prediction has the December soybean crush at nearly 183.0 million tonnes. If that guess was to hold, it would be a 1.9 per cent drop from December 2021. Soyoil stocks are expected to fall 15.1 per cent at 1.73 billion pounds.
The Buenos Aires Grain Exchange (BAGE) cut its forecast for 2022/23 soybean production in Argentina by 14.6 per cent at 41.0 million tonnes due to severe drought. Yesterday, the Rosario Grain Exchange slashed its call by 24.5 per cent at 37.0 million tonnes, while the USDA reduced its projection to 45.5 million tonnes. Also, Argentina has made plans to import soybeans from Brazil, should the drought take too much of a toll on the harvest.
Indonesia said it’s pressing ahead with its B35 biodiesel mandate this year, up from a 30 per cent blend (B30) of palm-based fatty acid methyl ester. The move is projected to push the country’s palm oil usage for biodiesel from 9.6 million tonnes in 2022 to 11.44 million tonnes in 2023. Indonesia supplies about half of the world’s palm oil.
Malaysia, the world’s second largest producer of palm oil, said it may impose an export ban of the oil to the European Union, due to the latter’s deforestation policies and its move to eliminate palm-based fuels for transportation by 2030.
WHEAT futures were mixed on Friday, seeing gains in Chicago and Kansas City while Minneapolis dipped back.
The U.S. weather forecast has called for no precipitation during the first part of the weekend, except for the Eastern Midwest, which is to get scattered showers. Isolated showers are possible Sunday to Monday across the Northern, Central and Southern Plains and all of the Midwest.
In international purchases, Taiwan acquired 45,200 tonnes of milling wheat and South Korea bought 130,000 tonnes of feed wheat. Also, Turkey purchased 550,000 tonnes of wheat, while Japan issued a tender for 89,735 tonnes of wheat from Canada and the U.S.
CORN futures were higher on Friday, due to spillover from soybeans and the winter wheats.
Ukraine reported it’s corn harvest is 85 per cent complete, bringing in 23.5 million tonnes so far. It’s expected 8.9 million acres of corn will be combined.
South Korea bought 68,000 tonnes of feed corn.
