By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 21 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Thursday, as the trend of higher soyoil prices and a lower Canadian dollar were reversed.
Soyoil lost about a half of a U.S. cent per pound today on the Chicago Board of Trade.
The loonie was stronger at mid-afternoon Thursday at 75.30 U.S. cents, after closing Wednesday at 75.17.
However, canola prices have remained range-bound with shifts of C$3 to C$5 per tonne either way, according to a trader. He said speculators and commercial traders have been quite reluctant to push bids to a great extent.
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There were 16,281 contracts traded on Thursday, which compares with Wednesday when 17,618 contracts changed hands. Spreading accounted for 10,116 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 463.20 dn 3.30
Mar 472.20 dn 3.10
May 480.10 dn 2.80
Jul 486.50 dn 3.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Thursday, due to developments in United States/China trade talks.
With the growing perception of trade talks faltering, China stated today it will do whatever it can to come to agreement with the U.S. This included inviting top U.S. trade officials to Beijing for face-to-face talks. The U.S. countered by saying their trade negotiators would travel to China only if they can obtain firm agreements on agricultural purchases, intellectual property and technology transfers. China has been balking at importing a set amount of U.S. ag products, but President Donald Trump warned he’s prepared to slap more tariffs on Chinese imports, which are scheduled for Dec. 15.
Wet weather for the U.S. Northern Plains tempered losses today. The precipitation will give farmers a hard time trying to finish off their soybean harvest by Dec. 1.
Malaysian palm oil closed at their highest levels since November 2017, and that has been pushing up Chicago soyoil. Malaysia reported its palm oil stocks for September were at 2.2 million tonnes after a reduction of 300,000 tonnes. Dry conditions in Malaysia, as well as Indonesia, have reduced palm oil production.
The U.S. Department of Agriculture (USDA) said in its export sales report for the week ended Nov. 14 that soybeans had net sales of almost 1.517 million tonnes. That was above market expectations, as well as up 22 per cent compared to the previous week and 39 per cent above the four-week average.
Soymeal export sales came in at 196,400 tonnes, which was short of market predictions and 43 per cent less than the previous week, as well as 12 per cent under the average. Soyoil saw 39,100 tonnes in export sales.
CORN futures were higher on Thursday with speculation that demand may soon increase.
There have been reports of U.S. farmers holding off on harvesting the rest of their corn for the time being, to let it dry out. However, the forecast has called for warmer temperatures, which will thaw out frozen ground and make fields muddy again.
The International Grains Council (IGC) issued its November report and increased its global corn estimate 1.103 billion tonnes. That’s a gain of 5 million tonnes from the IGC’s October forecast.
WHEAT futures were weaker on Thursday.
The USDA reported export sales of 437,700 tonnes of 2019/20 wheat, which was near the top end of trade expectations. The week’s sales were an 83 per cent jump from the previous week and were 29 per cent above the four-week average.
In International purchases, Japan bought nearly 120,000 tonnes of wheat, with more than half to come from the U.S. and the remainder from Canada. Algeria acquired 500,000 tonnes of wheat, most likely from France.
