North American Grain & Oilseed Review

Intercontinental Exchange (ICE) Futures canola contracts were weaker on Thursday, amid light trade activity ahead of the market’s break for the New Year holiday. Markets will resume on Monday, January 4. Canola prices are expected to gain strength in the new year in order to temper demand.

Chicago soyoil was slightly stronger on the day, which was supportive of canola’s gains. Nearby contracts were up by about six tenths of a cent on the day.
Continual strength in the Canadian dollar prevented further gains for prices. The loonie was around 78.4 U.S cents.

Today, 16,805 contracts were traded, which compares with Tuesday when 18,775 contracts changed hands. Spreading accounted for 10,600 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) closed stronger on Thursday.

According to the weekly export sales report from the United States Department of Agriculture (USDA), export sales for soybeans were reported at 695,000 tonnes, which was on the higher end of trade expectations. Soymeal sales were reported at 76,000 tonnes, which was lower than expected. Soyoil sales were reported at 60,000 tonnes, which beat out trade expectations.

The United States has banned imports of palm oil from Sime Darby Plantation. The Malaysian producer is facing allegations of forced labor during production.

There continues to be concern regarding dryness in South America. There have been rains across Argentina and Brazil, but some portions of the region remain dry.

CORN futures were also stronger today, spurred by gains in the soybean market.

Weekly export sales were reported at 964,500 tonnes, which was on the higher end of trade expectations.

Fuel demand was expected to be higher during the Christmas holidays, but many stayed home due to the COVID-19 pandemic. That led to lower ethanol production last week, with output down by 4.3 per cent on the week to total 39.2 million gallons per day. That’s the lowest rate since mid-October.

WHEAT futures were mixed today, taking a pause after making significant gains yesterday.

Wheat exports were around 520,000 tonnes last week, which was on the higher end of market expectations.

China auctioned off 21.4 million bushels of wheat in a weekly state auction early this morning. Weekly state wheat purchases have been on the decline since October, as rising grain imports have alleviated concerns of tight domestic supplies.

The Western Producer

Tags: North American Grain and Oilseed Review