Canola futures on the Intercontinental Exchange (ICE) surged higher on Thursday, on strength gleaned from sharp upticks in Chicago soybeans and soyoil.
Hot and dry weather in the United States continued to pose a serious threat to soybean crops just as they are beginning to pod. The weather outlook said there was little chance of significant rainfall for the next couple of weeks.
Temperatures pushing into the low 30 degrees Celsius were forecast for the southern parts of Alberta and Saskatchewan. The latest Saskatchewan crop report said crops were continuing with normal development where rain fell. The drier areas of the province saw crop development slow.
European rapeseed also swung higher, with small gains in the off session of Malaysian palm oil with both adding support to canola. Global crude oil prices were mixed, which provided little direction to vegetable oils.
The Canadian dollar was higher at mid-afternoon, with the loonie at 78.0 U.S. cents, compared to Wednesday’s close 77.69.
There were 26,326 contracts traded on Thursday, which compares with Wednesday when 18,385 contracts changed hands. Spreading accounted for 14,602 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 863.60 up 39.20
Jan 872.20 up 39.00
Mar 880.30 up 38.80
May 887.00 up 38.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, as hot and dry conditions in the United States threaten the development of soybean pods.
The U.S. Department of Agriculture (USDA) issued its export sales report for the week ended July 21, showing old crop soybeans incurred a net reduction of 58,600 tonnes. New crop soybeans had export sales of 748,800 tonnes. Old crop soymeal export sales of 28,000 fell 74 per cent from the previous week, while new crop sales were 20,600 tonnes. Soyoil included old crop sales of 4,600 tonnes and new crop sales of 600 tonnes.
The U.S. Senate is set to approve the US$1 per gallon bio and renewable diesel tax credit for 2024 with bipartisan support.
India purchased 50,000 to 60,000 tonnes of sunflower oil from Ukraine, with vessels currently being loaded in Odesa and Chornomorsk, according to a report.
CORN futures were higher on Thursday, with growing conditions in the U.S. also posing a challenge.
The USDA reported export sales of old crop were 150,300 tonnes and those for new crop were 193,700 tonnes.
Strategie Grains cut its forecast for the upcoming European Union corn harvest by 2.1 per cent at 65.4 million tonnes, due to dry conditions.
WHEAT futures bounced back on Thursday, regaining yesterday’s losses and more.
The USDA said wheat export sales came to 412,000 tonnes, falling 19 per cent from the previous week.
The second day of the Wheat Quality Council Tour in North Dakota projected wheat yields of 47.7 bushels per acre. The tour wrapped up today.
The USDA attaché in Australia pegged that country’s 2022/23 wheat harvest to be 31 million tonnes. While that would be 14.6 per cent less than last year’s production, it would be Australia’s fourth largest wheat crop on record.
SovEcon nudged up its projection of 2022/23 wheat exports out of Russia by 0.7 per cent at 42.9 million tonnes.
