Intercontinental Exchange (ICE) canola futures closed stronger on Monday, due to good upticks in the Chicago soy complex and European rapeseed.
The off session of Malaysian palm oil was relatively steady, which provided little direction to canola.
There were small losses in global crude oil prices, as they recovered from much larger declines earlier in the day. This meant crude was having little effect on vegetable oils.
While rain is forecast for the Prairies during the first part of the week, the region is to be dry for the remainder of the week and into the weekend.
As the United States dollar increased in strength, the Canadian dollar was pulling back at mid-afternoon. The loonie fell to 76.60 U.S. cents, compared to Friday’s close 76.98.
There were 26,567 contracts traded on Monday, which compares with Friday when 32,538 contracts changed hands. Spreading accounted for 16,378 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 846.80 up 28.40
Jan 855.30 up 28.40
Mar 859.20 up 26.40
May 860.70 up 25.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) were unexpectedly stronger on Monday, in light of no support from global crude oil prices.
The Pro Farmer Crop Tour started today with one leg travelling through Ohio and the other is in South Dakota. Tomorrow the tour continues in Indiana and Nebraska.
The United States Department of Agriculture (USDA) released its export inspections report and for the week ended Aug. 18 soybean exports came to 686,583 tonnes. That’s down 10.6 per cent from the previous week. The year to date is a little more than 55.99 million tonnes, 5.1 per cent behind this time last year.
Ahead of the department’s weekly crop progress report, the trade projected soybeans to be 58 per cent good to excellent.
China’s soybean imports from Brazil in July came to 6.97 million tonnes, down 11.5 per cent from the previous July. Imports from the U.S. were 377,642 tonnes, which is up 12.6 per cent compared to July 2021,
CORN futures were higher on Monday, due to spillover from soybeans and wheat, but gains were tempered by recent precipitation.
Rain fell across most of the U.S. Corn Belt and parts of the Southern Plains over the weekend. The Northern Plains are forecast to receive three-quarters of an inch to 1.25 inches of rain sometime during the next seven days.
The USDA reported corn export inspections were 740,508 tonnes, up 37.3 per cent from a week ago. The year to date arrived at 53.82 million tonnes, 17.8 per cent behind last year’s pace.
Market expectations placed U.S. corn at 57 per cent good to excellent.
China reported its corn imports reached 15.14 million tonnes over the last seven months. That’s down 14.3 per cent from the same period last year.
While much of southern China suffers from drought and extreme heat, in the northeast where most of the country’s corn is grown, temperatures a slightly cooler than normal and soil moisture is about 90 to 120 per cent of normal.
AgRural estimated that about 79 per cent of Brazil’s second corn crop has been harvested. The consultancy expects a 33 per cent increase in production this year at a total of 116 million tonnes.
WHEAT futures were stronger on Monday, due to the uptick in exports.
The USDA said wheat exports at 594,273 tonnes more than doubled from the previous week. The year to date tallied 4.49 million tonnes, which is 22.1 per cent less than this time last year.
Following the Indian government’s recent boast about wheat production this year, it has now stated that the country won’t need to import wheat. However, the markets believe India could acquire up to three million tonnes due to crop losses earlier this summer.
That said, India emphasized that a sale for 180,000 tonnes of wheat to Egypt is still going ahead despite delays. The original sale was for 500,000 tonnes.
In international purchases, Japan bought 13,400 tonnes of feed wheat and Iran tendered for 60,000 tonnes of milling wheat. Tenders for milling wheat also came from Taiwan for 34,205 tonnes and 50,000 tonnes by Bangladesh.
