Glacier FarmMedia | MarketsFarm — The ICE Futures canola market extended its rally on Thursday on the strength of vegetable oils and despite pressure from the Canadian dollar.
An analyst said the next resistance level for May canola is C$680 per tonne, adding that China needs additional sources for vegetable oil imports. Another analyst said the current trade situation may be a boon to Canadian canola despite Chinese tariffs on canola oil and meal.
United States President Donald Trump announced earlier today he was raising tariffs on Chinese goods to at least 145 per cent.
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Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were higher on Friday despite weakness in most comparable…
Chicago soyoil, European rapeseed and Malaysian palm oil were positive. However, ongoing trade tensions caused crude oil prices to drop by US$2 per barrel.
At mid-afternoon, the Canadian dollar was up nearly nine-tenths of a U.S. cent compared to Wednesday’s close.
There were 63,283 canola contracts traded on Thursday, which compares with Wednesday when 70,696 contracts changed hands. Spreading accounted for 40,102 of the contracts traded.
The United States Department of Agriculture released its April world supply/demand estimates Thursday morning.
U.S. WHEAT futures dropped on news of a higher-than-expected carryout for 2024-25. Kansas City hard red wheat prices saw the biggest losses.
The USDA reported 2024-25 projected wheat ending stocks at 846 million bushels, up 21 million from March and well above trade estimates. World ending stocks were up 620,000 tonnes at 260.7 million, also above expectations.
Projected carryout for Canadian wheat was pegged at 4.09 million, down 500,000 tonnes from March. Meanwhile, production was left unchanged at 34.96 million.
The USDA also reported U.S. old crop wheat export sales for the week ended April 3 fell by approximately two-thirds from the previous week at 107,300 tonnes. Sales for new crop wheat were similar at 107,700 tonnes.
The Chicago Board of Trade declared a force majeure on Wednesday due to high water levels and flooding on the Ohio River, preventing wheat from being loaded onto barges.
The European Commission raised the wheat production estimate for the bloc by 600,000 tonnes at 128.1 million.
SOYBEAN prices reached their highest levels in more than a week after rising for the fourth straight day.
Projected ending stocks for U.S. soybeans were 375 million bushels, down five million from March and slightly lower than the average trade estimate. World carryout was up 1.06 million tonnes at 122.47 million.
Production estimates for Brazil and Argentina were left unchanged at 169 million tonnes and 49 million, respectively.
The Rosario Grain Exchange estimated Argentina’s soybean crop at 45.5 million tonnes, down one million from the previous forecast.
CONAB raised its Brazilian soybean production estimate by 530,000 tonnes at 167.87 million.
Last week’s export sales for old crop U.S. soybeans were below trade expectations at 172,300 tonnes, less than half of the previous week’s total. However, old crop soymeal export sales were above expected at 276,000 tonnes to go with 11,200 tonnes of new crop soymeal. Old crop soyoil export sales totalled 20,200 tonnes.
The May CORN contract eclipsed the US$4.90 per bushel mark, its highest level since Feb. 27, before ending the day lower. It was also the sixth straight gain for the contract.
Projected corn ending stocks for 2024-25 were cut by 75 million bushels at 1.465 billion by the USDA, less than the average trade estimate of 1.51 billion. World corn carryout was cut by 1.29 million tonnes at 287.65 million, a bigger drop than expected.
South American corn production was left unchanged at 50 million tonnes for Argentina and 126 million for Brazil.
The Rosario Grain Exchange estimated Argentina’s corn crop at 48.5 million tonnes, up four million from its previous forecast.
CONAB estimated Brazilian corn production at 124.74 million tonnes.
The USDA also reported export sales for old crop corn near the lower end of trade expectations at 785,600 tonnes for the week ended April 3, down 33 per cent from the week before. In addition, 236,200 tonnes of new crop corn were also sold, a larger figure than expected.
