By Glen Hallick, MarketsFarm
WINNIPEG, March 9 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were weaker on Thursday, getting pressure from sharp declines in Chicago soyoil and European rapeseed.
Chicago soybeans were modestly lower, but there was support from upticks in Malaysian palm oil. Pull backs in global crude oil prices added to the pressure on the vegetable oils.
After canola broke past its support level of C$800 per tonne, an analyst placed the next level at C$780. However, he cautioned that futures could drop to C$750/tonne.
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By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
Continuing strength in crush margins underpinned canola values.
The Canadian dollar was lower at mid-afternoon Thursday with the loonie at 72.40 U.S. cents, compared to Wednesday’s close of 72.54.
There were 45,487 contracts traded on Thursday, which compares with Wednesday when 30,251 contracts changed hands. Spreading accounted for 21,906 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola May 792.30 dn 15.80 Jul 788.60 dn 15.80 Nov 763.30 dn 16.50 Jan 768.10 dn 16.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Thursday, due to dismal old crop export sales.
The United States Department of Agriculture (USDA) issued its export sales report for the week ended March 2 with old crop soybeans incurring a net reduction of 23,200 tonnes, which is a marketing year low. That’s also far below the low end of trade expectations. Sales of new crop soybeans came to 172,300 tonnes. Old crop soymeal sales came to 319,800 tonnes plus 110,000 tonnes of new crop, and soyoil sales were 7,300 tonnes. The meal and oil were within market guesses.
The USDA reported a private sale of 184,000 tonnes of old crop soybeans to unknown destinations.
CONAB issued its latest supply and demand estimates, with the agency pegging the 2022/23 Brazil soybean crop at 151.42 million tonnes, down a little from its previous report. Projected exports are to be 92.99 million.
With the drought in Argentina, the Rosario Grain Exchange dropped its call on the country’s 2022/23 soybean crop to 27 million tonnes, down from its previous forecast of 34.5 million.
CORN futures were weaker on Thursday, feeling the pressure from sharp losses in wheat.
The USDA said corn exports sales comprised 1.41 million tonnes of old crop and 113,200 tonnes of new crop. The old crop sales were a pinch above market projections.
CONAB estimated the 2022/23 Brazil corn crop at 124.67 million tonnes, a pinch lower than its earlier call. The agency placed the country’s first corn crop at 26.76 million tonnes and the second at 95.60 million. Exports for 2022/23 are to be 48 million tonnes.
Rosario pegged 2022/23 Argentina corn output at 35 million tonnes, falling from the exchange’s earlier projection of 42.5 million.
WHEAT futures were weaker on Thursday, with export sales largely ignored.
Weekly export sales of U.S. wheat were 266,700 tonnes of old crop and 70,000 tonnes of new crop. The old crop sales were withing trade estimates.
Russia bombarded Ukraine with 81 missiles, of which Ukraine claimed it shot down 34. Russia targeted several major centers and infrastructure facilities.
