North American Grain and Oilseed Review: Canola rebalances after ‘strange little rally’

Wheat retreats as soybeans, corn inch up

By Glen Hallick, MarketsFarm

WINNIPEG, Oct. 22 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were steady to lower on Thursday as the market rebalances after getting too far ahead of the Chicago soy complex.

A trader put canola about $26 per tonne ahead of Chicago. He said canola demonstration rare independent strength in what he termed “a strange little rally.”

At mid-afternoon, the Canadian dollar was slightly lower at 76.07 U.S. cents, compared to Wednesday’s close of 76.21.

Saskatchewan Agriculture reported the province’s harvest is over with a bit under 100 per cent of the crops in the bin. That’s 11 points above the five-year average. The report stated canola yields across Saskatchewan averaged 37 bushels per acre, which was three ahead of the 10-year average.

There were 31,226 contracts traded on Thursday, which compares with Wednesday when 44,941 contracts changed hands. Spreading accounted for 20,624 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Nov 545.60 dn 3.10
Jan 546.90 dn 1.90
Mar 549.70 dn 0.40
May 546.10 dn 1.40

SOYBEAN futures at the Chicago Board of Trade (CBOT) were steady to higher on Thursday, following a good export sales report.

The United States Department of Agriculture (USDA) reports weekly export sales of soybeans were almost 2.23 million tonnes for the week ended Oct. 15, and were on the high end of trade guesses. China bought about 55 per cent of the week’s sales. Soymeal exports topped 321,900 tonnes and soyoil tallied 37,000 tonnes.

The department also announced two private sales of soybeans. The first is for 152,400 tonnes to Mexico and the second is for 132,000 tonnes to unknown destinations. Delivery for both is to be during the current marketing year.

Combining was reported to have largely resumed in those areas of the U.S. that received snow or rain earlier this week.

In Brazil, CONAB maintained its call for a record soybean crop despite dry conditions slowing the planting of this year’s crop, which was at 10 per cent in the ground.

CORN futures were higher on Thursday, due to a large improvement in export sales.

The USDA said corn export sales jumped 180 per cent from the previous week at more than 1.83 million tonnes, which exceeded market expectations. Japan (490,100 tonnes) and China (433,500 tonnes) were the top buyers. Corn export sales have already reached 48 per cent of the USDA’s forecast, compared to 23 per cent a year ago.

The planting of Brazil’s corn crop was reported at 44 per cent complete.

WHEAT futures were lower on Thursday, as export sales weren’t favourable.

Export sales of U.S. wheat were down 31 per cent at 367,500 tonnes, and were toward the lower end of trade predictions.
The USDA reported a private sale of 130,000 tonnes of white wheat to South Korea. Delivery is to be during the current marketing year.

The U.S. Dollar Index gained a little bit of strength, rising to just short of 93.0 points, thereby making U.S. wheat more costly on the global market.

Turkey eliminated its 45 per cent import tariff on wheat. That could generate buying in the Black Sea region.

In international sales, Algeria purchased 720,000 tonnes of wheat and Japan bought 80,526 tonnes, of which 36.3 per cent is from the U.S.

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Futures Prices as of October 22, 2020

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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