By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 8 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Thursday. A lack of farmer selling provided support for prices, said a market analyst.
Also, support came from stronger European rapeseed prices and strong gains in the Chicago soy complex. As well as dry condition across parts of the Prairies, that has kept a weather premium on bids.
Concerns surrounding China tempered gains, with its ongoing dispute with Canada and trade war with the United States.
The markets are expected to remain range-bound at least until the U.S. Department of Agriculture releases its supply and demand report on Monday.
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Volumes were significantly higher Thursday than what has been witnessed over the last several weeks, and with an associated jump in the spreads.
There were 24,311 contracts traded on Thursday, which compares with Wednesday when 13,347 contracts changed hands. Spreading accounted for 12,620 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 452.20 up 2.80
Jan 460.70 up 2.90
Mar 467.50 up 3.20
May 473.80 up 3.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, due to dry weather in parts of the United States Midwest and Plains.
In the U.S. Department of Agriculture’s (USDA) weekly export sales report issued this morning, old crop soybeans came in at a 101,700 tonnes, down 29 per cent back of the previous week’s report, but within trade expectations. There were 318,300 tonnes in sales of new crop soybeans, which were about in the middle of market predictions.
Soymeal and cake sales amounted to 92,200 tonnes, down 19 per cent from the previous week. Sales of old crop soyoil were at 31,800 tonnes and well.
The Philippines purchased 135,000 tonnes of soymeal through a private sale on Thursday.
China’s General Administration of Customs reported the country imported 8.64 million tonnes of soybeans in July, well up from the 6.51 million tonnes in June.
Stemming from the U.S./China trade war, soybean prices in Brazil hit their highest levels in two months. The per bag price in the country’s State of Mato Grosso reached the equivalent of US$15.67 per bag, according to a Reuters. Also, Brazil’s port premiums rose by 70 per cent since mid-June. Plus the Brazil real has weakened against the U.S. dollar.
CONAB raised its estimate of the Brazil 2018/19 soybean crop to 155.07 million tonnes.
Venezuelan Vice-President Delcy Rodriguez tweeted there had been a ship carrying 25,000 tonnes of soy that been detained in the canal. In response, the Panama Canal Authority issued a statement that the canal was operating normally with no delays and no ships had been detained.
African swine fever has been discovered in a 15th country, Bulgaria. More than 130,000 hogs in the country were culled over the last two weeks, according to a report. African swine fever has had a devastating impact on the hog industries in China and Vietnam and has been present in Belgium, Cambodia, Hungary, Laos, Latvia, Moldova, North Korea, Poland, Romania, Russia, South Africa and Ukraine.
CORN futures were higher on Thursday, as dry conditions expand in the U.S. Corn Belt and in the southern plains.
In the export sales report, old crop corn did poorly at 42,600 tonnes for a drop of 70 per cent from the previous week, and far below trade expectations. At 197,000 tonnes, new crop corn sales fared better and were slightly under expectations.
CONAB revised its estimate of the Brazil corn crop for 2018/19 from 98.50 million tonnes to 99.31 million.
WHEAT futures were steady to stronger on Thursday, due to technical buying.
At approximately 487,670 tonnes, wheat sales were up 27 per cent from last week and on the high end of market predictions.
China made its first wheat purchase of the 2019/20 crop year with 60,000 tonnes.
Saudi Arabia and the United Arab Emirates sent more than 544,300 tonnes of wheat to Sudan as food aid, enough for to supply the war-torn country for about three months.
