By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 12 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished higher on Thursday as canola attempted to close the gap with product values.
A trader said the gap was $26 this week alone and $40 over the last two weeks. The separation was increased by Tuesday’s supply and demand estimates from the United States Department of Agriculture. The November report forecast lower yields, production and ending stocks for corn and soybeans, which generated large gains for those commodities.
However, profit-taking stymied gains in canola for most of the session, before giving way.
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While there was support from strong prices for Malaysian palm oil, weakness in the Chicago soy complex and European rapeseed weighed on values.
At mid-afternoon, the Canadian dollar was weaker at 76.07 U.S. cents, compared to Tuesday’s close of 76.82.
There were 32,361 contracts traded on Thursday, which compares with Tuesday when 38,448 contracts changed hands. Spreading accounted for 20,246 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 559.90 up 1.50
Mar 563.20 up 1.30
May 563.00 up 0.80
Jul 560.80 up 0.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Thursday, due to profit-taking following the sharp hikes on Tuesday and moderate gains on Wednesday.
The recent gains were a result of the November supply and demand report from the United States Department of Agriculture (USDA) that cut yields, production and ending stocks for soybeans as well as corn.
With marking Veterans’ Day on Wednesday, the USDA has delayed its weekly export sales report to Friday. Current soybean shipments and open sales tally 1.78 billion bushels, or 81 per cent of estimated soybean exports of 2.2 billion bushels, according to a report.
Malaysian palm oil hit its highest level since the end of April 2012, reaching 3,494 ringgits. Declining production has been a major influence in the price increases.
A strike by dock workers in Argentina has delayed five cargo ships from loading this week. The workers are demanding pay increases.
Long-term weather forecasts predict continued dry conditions for southern Brazil. With the soybean crop still being planted, the conditions could adversely affect yields in the New Year.
CORN futures were down on Thursday, also due to profit-taking.
The Energy Information Administration (EIA) reported ethanol production for the week ended Nov. 6 was an average of 977,000 barrels per day. That’s the highest average since the before the pandemic shutdowns. Stockpiles were up 484,000 barrels, bringing the U.S. inventory to almost 20.16 million.
Sunny weather is forecast for the Eastern Corn Belt, allowing farmers to finish off their combining.
WHEAT futures were lower on Thursday, caught up in spillover from soybeans and corn.
The U.S. Midwest is forecast to have above normal temperatures until mid-November.
Russia is likely to set a 15 million tonne grain export quota for the period running from February to June of next year, according to reports. The quota will apply to wheat, rye, barley and corn. Also, the Agriculture Ministry estimated the Russian wheat crop would be 127.5 million tonnes in 2020-21.
Estimates from private analysts predict China’s wheat crop could top 138.0 million tonnes in 2020/21, for an increase of two per cent from last year.
Strategie Grains predicts a nine per cent increase in total wheat acres across the European Union and the United Kingdom to 59.3 million due to improving wheat prices.
Refinitiv Research projects Argentina’s 2020/21 wheat crop will come in at 17.2 million tonnes, while the Rosario Grain Exchanged has projected the crop to be 16.7 million tonnes. Last year’s crop was estimated at 19.8 million tonnes, according to the International Grains Council.
In international sales, Pakistan issued a tender for 400,000 tonnes of wheat.
