By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 2 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures gave up the gains it had for most of the session on Thursday to finish mostly lower.
While Chicago soybeans and soyoil increased as well today, they also ended down from their earlier highs. Additional support came from gains in Malaysian palm oil and European rapeseed, while lower Chicago soymeal weighed on values.
At mid-afternoon, the Canadian dollar was higher and putting pressure on canola. The loonie was at 79.63 U.S. cents compared to Wednesday’s close of 79.32.
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Saskatchewan reported that its province-wide harvest of all crops reached 36 per cent complete, with 11 per cent of the canola combined.
The Port of Thunder Bay reported a rare westward shipment of wheat headed for Manitoba. Richardson moved 12,000 from Hamilton to Thunder Bay were it was loaded on to a train. The shipment highlights how much the drought has devastated Prairie crops and the cattle industry in the region.
There were 14,586 contracts traded on Thursday, which compares with Wednesday when 18,925 contracts changed hands. Spreading accounted for 8,756 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 892.50 up 1.70
Jan 875.60 dn 0.50
Mar 856.20 dn 1.80
May 836.50 dn 3.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Thursday, due to gains in soyoil as well as strong export news.
The United States Department of Agriculture (USDA) reported a private sale of 126,000 tonnes of soybeans to China. Delivery is to be during the 2021/22 marketing year which started Sept. 1.
The USDA said weekly export sales of soybeans, as of Aug. 26, came to 68,200 tonnes of old crop and 2.13 million tonnes of new crop. Soymeal sales comprised of 17,700 tonnes of old crop and 396,600 tonnes of new crop, while soyoil amounted to 4,100 tonnes.
Monthly census data from the USDA placed July soybean exports at 945,740 tonnes, with accumulated exports up to the end of July at 60.34 million tonnes. The August supply and demand report estimated 2020/21 soybean exports at 61.51 million tonnes. The census also included July soymeal exports at 980,821 tonnes and soyoil exports of 16,184 tonnes.
The U.S. and Canadian markets will closed on Sept. 6 for Labour Day, with trading to resume that evening.
Brazil reported its soybean exports in August came to 6.5 million tonnes, up 11.4 per cent compared to the previous August.
CORN futures were mixed on Thursday, with the front months getting support from gains in soybeans and wheat.
Weekly export sales incurred a sizeable net reduction of 300,800 tonnes of old crop corn. That was countered by new crop sales of nearly 1.16 million tonnes.
The USDA census showed July corn exports of 5.47 million tonnes, which brought the running total for 2020/21 to 66.4 million tonnes. The department forecast corn exports to tally 70.49 million tonnes.
Brazil reported its August corn exports totaled 4.35 million tonnes, down 30.3 per cent compared to August of last year.
WHEAT futures were higher on Thursday, but with the Minneapolis December contract remaining just below US$9 per bushel.
U.S. wheat export sales were 295,300 tonnes.
The monthly USDA census put July wheat exports 2.05 million tonnes, which were 15 per cent than those in July 2020. The year-to-date for 2020/21 came to 4.05 million tonnes, 13.4 per cent less than this time in 2019/20.
The USDA is scheduled to issues its next supply and demand report on Sept. 10, followed by the small grains summary and quarterly grain stocks on Sept. 30.
In international purchases, Algeria bought almost 500,000 tonnes of wheat with the possibility of adding more to the tender, and Turkey acquired up to 300,000 tonnes of milling wheat.
END
