North American Grain and Oilseed Review: Canola closes lower

Intercontinental Exchange (ICE) canola futures turned lower on Thursday after hitting new contract highs earlier in the session.

Declines in Chicago soybeans and soymeal, as well as Malaysian palm oil weighed on canola values. Support did come from gains in Chicago soyoil and European rapeseed. Global crude oil prices were mixed, providing little direction for edible oils.

Those contract highs in canola were achieved not long after CONAB chopped its estimate on Brazil soybean production. However, the oilseed markets were seen as overbought and profit-taking took hold.

The Canadian dollar was lower at mid-afternoon, with the loonie at 78.69 U.S. cents, compared to Wednesday’s close of 78.86.

There were 33,121 contracts traded on Thursday, which compares with Wednesday when 21,939 contracts changed hands. Spreading accounted for 19,796 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Mar 1,019.80 dn 6.80
May 1,005.60 dn 7.90
Jul 978.70 dn 6.20
Nov 844.90 dn 1.10

SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday, as profit-taking set in after prices broke through US$16 per bushel.

CONAB hacked 15 million tonnes off of its call on the 2021/22 Brazil soybean crop, now pegged at 125.5 million tonnes. In comparison, the United States Department of Agriculture projected Brazil soybean production at 134 million tonnes in its supply and demand report released yesterday. Several private consultancies have reduced their forecasts to below 130 million tonnes.

The USDA reported soybean export sales for the week ended Feb. 3 at nearly 1.6 million tonnes of old crop, plus 894,600 tonnes of new crop. Soymeal export sales were 241,400 tonnes of old crop, with new crop incurring a net reduction of 2,200 tonnes.

CORN futures were lower on Thursday, getting caught up in the downturn.

The USDA reported weekly corn export sales of 589,100 tonnes of old crop with no new crop sales.

CONAB trimmed 0.5 per cent from its forecast on 2021/22 Brazil corn production, now at 112.3 million tonnes. The USDA estimate is 114 million tonnes.

WHEAT futures were weaker on Thursday, due to lackluster export sales.

Weekly export sales of wheat amounted to 84,800 tonnes of old crop and 48,400 tonnes of new crop.

Russia ramped up tensions in the border crisis with Ukraine by going ahead with military exercises with Belarus and in the Black Sea. Fears are Russia will invade Ukraine sometime this month, likely after the Beijing Winter Olympics.

France lowered its estimate of its soft wheat acres by four per cent at 11.74 million.

Japan bought 115,913 tonnes of wheat from the U.S., Canada and Australia.

The Western Producer

Tags: soybean futures, corn futures, soybeans, Production, soyoil, rapeseed, palm oil, canola futures, wheat futures, soymeal