By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 20 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mixed on Monday in the heavily traded old crop months. There was a sharp decline in the sparsely traded new November contract.
Chicago soyoil came off of earlier lows, but still weighed on canola values, as did declines in Malaysian palm oil. European rapeseed finished mixed, with losses in its front months.
In the December supply and demand report from Agriculture and Agri-Food Canada, saw some tweaks to estimates for canola exports and domestic usage. The department maintained its canola ending stock projection at 500,000 tonnes.
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Tight canola supplies and the need to ration demand underpinned values. The spec longs were also supportive of canola.
At mid-afternoon the Canadian dollar was weaker, with the loonie at 77.22 U.S. cents, compared to Friday’s close of 77.85.
There were 17,688 contracts traded on Monday, which compares with Friday when 22,433 contracts changed hands. Spreading accounted for 9,954 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 1,013.20 dn 1.10
Mar 1,002.20 dn 0.50
May 967.50 up 2.10
Jul 916.50 up 1.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Monday along with gains in soymeal. There were significant losses in soyoil.
The United States Department of Agriculture (USDA) released its export inspections report for the week ended Dec. 16, which showed soybean exports of 1.68 million tonnes, down 3.9 per cent from the previous week. The year-to-date movements amount to 27.15 million tonnes, down 22.8 per cent from a year ago.
Reports stated that Brazil has received 35 to 40 per cent of its normal precipitation for the last month. Concerns over dryness in Brazil and Argentina are creeping into the market, as a La Nina could result in very little rain for January and February.
China reported its November imports of soybeans total 8.57 million tonnes, of which 43.8 per cent came from Brazil and 42.4 per cent from of the U.S.
CORN futures were slightly lower on Monday, as sharp declines in global crude oil prices were countered by spillover from gains in soybeans and winter wheats.
The USDA reported corn export inspections of one million tonnes, which are up 9.2 per cent from the previous week. The year-to-date reached 11.31 million tonnes, which is 12 per cent behind this time last year.
China said its November corn imports tallied 790,000 tonnes, of which 91.1 per cent came from the U.S.
Argentina will impose an export cap on corn of 25 million tonnes, but the restriction will be revised according to the coming harvest.
WHEAT futures were mixed on Monday, as Chicago and Kansas City closed higher while Minneapolis stepped back.
The National Oceanic and Atmospheric Administration (NOAA) has forecast cooler temperatures for the U.S. Heartland, with little chance of precipitation. The Northern Plains are expected to get a quarter inch of precipitation by the end of Tuesday.
The USDA said outbound wheat movements came to 211,880 tonnes, falling 21.2 per cent on the week. The year-to-date hit 11.63 million tonnes, 17.7 per cent less than exports a year ago.
Argentina’s restriction on wheat exports are to in accordance with an equilibrium to local prices. The export cap was set at two million tonnes with the equilibrium quantity at 12.5 million.
