WINNIPEG, Aug. 16 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were stronger on Monday, but took a step back from their earlier highs.
A trader said canola was likely run up by speculative fund traders in an attempt to see how high they could push it. However, he suggested canola doesn’t have much more room to expand as it was getting expensive compared to other edible oils.
There were gains in Chicago soybeans and soymeal, while soyoil fell back. Additional support was derived from gains European rapeseed and Malaysian palm oil.
Improvements in the nearby contracts of the ICE canola crush margins also lent support to canola. Compared to a week ago, the margins for November-October and November-December have approximately tripled.
The Prairie weather forecast has called for hot temperatures to start off the week, and then moderating by Wednesday. That cooling could generate some precipitation for the region.
At mid-afternoon, the Canadian dollar was weaker, which provided support to canola. The loonie was at 79.52 U.S. cents compared to Friday’s close of 79.91.
There were 13,144 contracts traded on Monday, which compares with Friday when 14,907 contracts changed hands. Spreading accounted for 5,660 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 912.40 up 18.10
Jan 898.20 up 15.40
Mar 880.70 up 12.90
May 860.70 up 12.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Monday, due to a private sale and an increase in export inspections.
The United States Department of Agriculture (USDA) reported a private sale of 132,000 tonnes of soybeans to unknown destinations. Delivery is to be during the upcoming marketing year, which begins Sept. 1.
The USDA issued its weekly export inspections report, citing soybean shipment of 277,637 tonnes for the week ended Aug. 12. That made for a 142 per cent jump from the previous week. The year-to-date reached 58.66 million tonnes, 42.4 per cent more than the same time a year ago.
The National Oilseed Processors’ Association (NOPA) reported the U.S. July soybean crush came to almost 155.11 million bushels. That marked a four-year for July and was about four million below market expectations. Despite the reduction in the crush, the NOPA said soyoil stocks increased by 5.2 per cent at about 1.62 billion pounds.
CORN futures were lower on Monday, as export inspections budged very little from the previous week,
Corn export inspections nudged high by 1.3 per at 754,929 tonnes on the week. So far more than 64.35 million tonnes of corn has been exported on the year, which is 58.8 per cent above this point last year.
Ahead of the USDA weekly crop progress report, the trade expects very little movement in the corn condition rating.
The Pro Farmer Crop Tour began this morning, with reports on South Dakota and Ohio due this evening.
The Dakotas, Minnesota, Nebraska and Iowa are forecast to receive a half inch to one inch of rain today. The National Oceanic and Atmospheric Administration (NOAA) said July was the hottest on record in 142 years.
WHEAT futures were mixed on Monday, with a small increase for Chicago and decreases for Kansas City and Minneapolis.
Wheat shipments totaled 440,567 tonnes, for a decrease of 32.6 per cent from the week prior. So far into the wheat marketing year, 4.89 million have been shipped, which is down 13.7 per cent at this point in 2020/21.
SovEcon reduced its call on Russian wheat production to 76.2 million tonnes due to dry conditions.
Wet conditions continued to pose a threat to French wheat production.
