North American Grain and Oilseed Review: Canola pulls away from losses, finishing mixed

Intercontinental Exchange (ICE) canola futures were narrowly mixed for the most part on Wednesday. Prices pulled well away from much larger losses due weakness in global crude oil values and to a measure of profit-taking.

Tight canola supplies, continuing dryness on the Prairies, and seller reluctance underpinned values, as did gains in Malaysian palm oil and Chicago soymeal. Losses in European rapeseed as well as Chicago soybeans and soyoil weighed on values.

At mid-afternoon the Canadian dollar was lower with the loonie at 80.49 U.S. cents, compared to Tuesday’s close of 80.62.

There were 15,895 contracts traded on Wednesday, which compares with Monday when 22,972 contracts changed hands. Spreading accounted for 9,432 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jan 990.70 dn 0.10
Mar 963.10 dn 0.60
May 930.80 up 0.10
Jul 888.20 up 2.50

SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Wednesday due to profit-taking and declines in global crude oil prices.

Ahead of the next supply and demand estimates from the United States Department of Agriculture (USDA) on Nov. 9, trade expectations are pointing towards higher yields and production. In October, the USDA placed those numbers at 111.77 million tonnes on 51.5 bu/ac.

The day before the USDA’s weekly export sales report the markets predict sales of one million to two million tonnes of soybeans, with soymeal at 100,000 to 250,000 tonnes, and soyoil between zero and 20,000 tonnes.

Brazil reported its soybean exports for October amounted to 3.3 million tonnes, 36.4 per cent more than a year ago.

The Buenos Aires Grain Exchange (BAGE) estimated that Argentine farmers have sold up to 35 million tonnes of their 2020/21 soybean crop. Also, the BAGE pegged that crop at 43.1 million tonnes versus the 46.2 million tonnes forecast by the USDA. The exchange projected the 2021/22 Argentine soybean crop to come on at 44 million tonnes, down from the USDA’s projection of 51 million.

CORN futures were lower on Wednesday also due to weakness in crude oil.

The trade is predicting small increases for U.S. corn yields and production come Tuesday. Last month, USDA estimated production at about 389.93 million tonnes on an average yield of 176.5 bu/ac.

The U.S. Energy Information Administration (EIA) reported production for the week ending Oct. 29 came to 1.107 million barrels per day (BPD), slightly under the record set in 2008. The EIA said ethanol stocks increased 204,000 barrels at nearly 20.13 million for a five-week high.

Trade expectations for corn export sales are between 700,000 and 1.4 million tonnes.

Ukraine reported that its corn harvest was 44 per cent complete, well back of the 62 per cent done this time last year. Agroconsult projected Ukraine’s corn to reap 35 million tonnes while last month the USDA called for 38 million.

WHEAT futures were weaker as well on Wednesday as profit-taking commanded the day.

Expectations are for slightly lower U.S. wheat ending stocks come Tuesday’s report.

The trade has pegged wheat export sales at 180,000 to 500,000 tonnes.

The Western Producer

Tags: soyoil, canola futures, wheat futures, prices, soybean futures, corn futures, soybeans