By Glen Hallick, MarketsFarm
WINNIPEG, April 29 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures mostly higher on Thursday, after a choppy session that witnessed wide swings.
Only the immediate May contract was lower as traders rolled out of May as it expires tomorrow.
A combination of tight old crop supplies, questionable new crop supplies and dryness across the Prairies underpinned canola values. The markets will be keeping a keen eye on seeding progress throughout the region as the pace is expected to pick up.
A trader noted there has been a good amount of spread trading between ICE canola and Chicago soybeans, with purchases of the former and selling the latter.
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Spillover support from the Chicago soy complex was mixed, with sharp declines in soybeans and soyoil. Meanwhile, soymeal was moderately higher. European rapeseed also moved higher, especially with a strong uptick in its May contract.
A rising Canadian dollar continued to weigh on canola. At mid-afternoon, the loonie was at 81.42 U.S. cents compared to Wednesday’s close of 80.93.
There were 16,985 contracts traded on Thursday, which compares with Wednesday when 22,132 contracts changed hands. Spreading accounted for 7,672 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 893.00 dn 2.00
Jul 842.80 up 9.40
Nov 689.90 up 2.70
Jan 688.70 up 3.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday due to profit-taking.
The United States Department of Agriculture (USDA) reported weekly export sales of old crop soybeans were 292,500 tonnes for the week ended April 22. Sales of new crop beans were 439,000 tonnes. Old crop soymeal registered sales of 163,500 tonnes for a 32 per cent increase over the previous week. New crop meal sales were 96,900 tonnes. Soyoil came in at 3,600 tonnes.
The International Grains Council (IGC) maintained its projection for total global grain production in 2021/22 at 2.287 billion tonnes. The total carryover also stayed at 609 million tonnes. As for soybean production, the IGC held its forecast at 383 million tonnes with ending stocks at 50 million.
Tunisia issued an international tender for 27,000 tonnes of soyoil or rapeseed oil.
CORN futures were spilt on Thursday between gains in the old crop months and declines in the new crop positions.
The USDA said old crop export sales of corn increased 35 per cent at 521,300 tonnes. New crop sales tallied 553,400 tonnes.
Dry conditions and hot weather continued to hamper Brazil’s safrinha corn crop.
The IGC trimmed its call for global corn production in 2021/22 by 0.08 per cent at 1.192 billion tonnes, but raised the carryout by 2.3 per cent at 264 million tonnes.
South Korea issued a tender for 133,000 tonnes of corn, after recently purchasing 271,000 tonnes.
WHEAT futures were mixed on Thursday, with increases for Chicago and Minneapolis, while Kansas City was slightly lower.
With five weeks left in the U.S. wheat marketing year, old crop export sales amounted to 223,600 tonnes, for a seven per cent decline from the previous week. New crop sales totaled 237,700 tonnes.
The European Commission cut its estimate for usable production of common wheat by 1.5 per cent at 124.8 million tonnes.
The grain traders’ union in Ukraine raised its estimate of the country’s wheat production by 10 per cent at 27.7 million tonnes, with exports reaching 21 million tonnes. However, wet conditions in Ukraine, as well as in Russia, are of concern.
The IGC kept its call for world wheat production in 2021/22 at 790 million tonnes, while it cut ending stocks by nearly two per cent at 298 million tonnes.
The Philippines tendered for 185,000 tonnes of wheat and Algeria procured between 200,000 to 300,000 tonnes.
