North American Grain and Oilseed Review: More contract highs for canola

Intercontinental Exchange (ICE) canola futures were stronger on Friday as gains back away from another round of new contract highs.

At one point the January contract topped off at C$1,028.90 per tonne, with the March hitting C$997.10.

A trader noted that new crop contracts have pushed well past C$800 per tonne, which he called “phenomenal.” The trader pointed to spec funds as pushing contracts higher.

Support came from increases in European rapeseed and Malaysian palm oil, along with Chicago soybeans and soymeal.
Chicago soyoil failed to sustain its gains, falling back as crude oil prices remained lower.
Tight supplies continued to underpin canola values, while the approximate size of this year’s disappointing harvest will be made known by Statistics Canada on Dec. 3.

At mid-afternoon the Canadian dollar was lower, with the loonie at 79.69 U.S. cents, compared to Wednesday’s close of 80.31.

There were 29,529 contracts traded on Friday, which compares with Wednesday when 24,721 contracts changed hands. Spreading accounted for 13,930 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jan 1,025.30 up 20.90
Mar 991.50 up 14.80
May 955.00 up 10.10
Jul 911.90 up 8.00

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Friday, largely on today’s export announcement and South American crops.

The United States Department of Agriculture (USDA) announced a private sale of 256,930 tonnes of soybeans to unknown destinations. Delivery is to be during the current marketing year.

The USDA issued its weekly export sales report, a day after Veterans’ Day. For the week ended Nov. 4, 2021/22 soybean export sales came to 1.29 million tonnes, which is down 31 per cent from the previous week. New crop sales were 30,000 tonnes. Soymeal export sales for the week increased 23 per cent at 278,000 tonnes, while those for 2022/23 incurred a net reduction of 100 tonnes. Soyoil was down seven per cent at 10,400 tonnes.

Ahead of the monthly report from the National Oilseed Processors Association, the trade has projected the October soybean crush to be about 182 million bushels, with soyoil stocks at 1.72 billion pounds.

In South America, CONAB has pegged Brazil’s 2021/22 soybean crop at an all-time record of 142 million tonnes. However, that’s two million less than the USDA’s call.

The Rosario Grain Exchange estimated planted soybean acres in Argentina for 2021/22 to be slightly under 40 million, for the small amount of acres in 15 years.

CORN futures were higher on Friday, catching spillover from soybeans.

The USDA reported weekly corn export sales of almost 1.07 million tonnes, down 13 per cent from the previous report. Also, there was a net reduction of 2,500 tonnes for 2022/23.

CONAB placed Brazil’s 2021/22 corn crop at 116.7 million tonnes. While up 0.34 per cent from the October report, it’s 18 million tonnes below the USDA’s projection.

Rosario forecast corn production in Argentina to come in between 55 million to 56 million tonnes, which compares to the USDA’s call for 54.5 million. Planting was said to be 42 per cent complete.

WHEAT futures were mixed on Friday, with gains for Chicago and Kansas City, but declines for Minneapolis.

Wheat export sales dropped 29 per cent at 285,900 tonnes, according to the USDA.

Russia said its wheat export tax for next week will be US$77.10 per tonne, up from the current US$69.90.

While rainfall has aided Argentina’s soybean and corn planting, it has hampered its wheat crop, delaying this year’s harvest.

The Western Producer

Tags: soybean futures, corn futures, soyoil, palm oil, wheat export, canola futures, wheat futures