North American Grain and Oilseed Review: Big jump in soyoil boosts canola bids

By Glen Hallick, MarketsFarm

WINNIPEG, Dec. 12 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished stronger on Thursday, with spillover from large gains in Chicago soyoil.

At the Chicago Board of Trade, soyoil jumped by almost eight-tenths of a cent today. Bids were buoyed by good export sales and buzz that a United States/China trade deal was imminent.

Although canola was up, a trader noted that bids still lagged behind gains in soyoil and other vegetable oils.

By mid-afternoon, the loonie steady at 75.84 U.S. cents compared to Wednesday’s close of 75.75, which weighed on values.

There were 42,057 contracts traded on Thursday, which compares with Wednesday when 35,216 contracts changed hands. Spreading accounted for 33,118 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jan 459.10 up 5.60
Mar 468.20 up 5.40
May 476.30 up 5.60
Jul 482.00 up 5.40

SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Thursday, due to strong buying and buzz about a trade deal reached between the United States and China.

Reports stated that the U.S. and China reached an agreement in principle for their Phase One trade deal. Earlier in the day, U.S. President Donald Trump tweeted that a deal was imminent. Also it was reported Trump will cancel tariff hikes on Chinese imports that were scheduled to take effect on Sunday.

In the U.S. Department of Agriculture’s (USDA) weekly export sales report released today, soybeans totaled 1.05 million tonnes, which were near the high end of trade expectations. Soymeal topped 238,000 tonnes and soyoil reached 30,000 tonnes, as both were within expectations.

CORN futures were higher on Thursday, due weather forecasts of colder temperatures and more snow for the U.S. Northern Plains. Estimates put the amount of corn still in the fields at approximately eight per cent nation-wide.

Weekly export sales of U.S. corn hit 873,000 tonnes, which exceeded market predictions.

This morning, the USDA announced a major export sale of corn to Mexico of more than 1.6 million tonnes. About two-thirds are scheduled to be delivered in the 2019/20 marketing year and the remainder during the following year. Also, there was a sale of 110,744 tonnes of corn to unknown destinations.

There were reports stating Brazil has run out of corn to export and has now turned to importing from Argentina to meet its domestic demand. Brazil acquired 200,000 tonnes of corn from its neighbour in a sale announced today.

Strategie Grains estimated the 2020 European Union corn crop to increase by 5.7 per cent to 67.10 million tonnes.

WHEAT futures were stronger on Thursday, with double-digit gains for Chicago and Kansas City.

The USDA reported export sales of wheat were 503,000 tonnes and surpassed trade guesses.

Strategie Grains reduced its estimate of the 2020 EU soft wheat crop by 3.6 per cent to 140.5 million tonnes.

Japan purchased more than 171,000 tonnes of wheat with the U.S. to supply about half of it. The rest is to come from Canada and Australia.

Futures Prices as of December 12, 2019

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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