By Glen Hallick, MarketsFarm
WINNIPEG, April 1 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mostly lower on Thursday with the old crop months taking the brunt of the declines. There were some gains in the more distant new crop months.
Speculative long liquidation ensued after yesterday’s limit up gains generated farmer selling. Following Wednesday’s close, ICE increased canola’s daily limit from C$30 per tonne to C$45.
Sharp drops in the Chicago soy complex, as well as losses in European rapeseed and Malaysian palm oil weighed on values.
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At mid-afternoon the Canadian dollar was slightly higher, with the loonie at 79.65 U.S. cents compared to Wednesday’s close of 79.52.
There were 32,761 contracts traded on Thursday, which compares with Wednesday when 23,472 contracts changed hands. Spreading accounted for 19,928 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 740.80 dn 16.30
Jul 701.60 dn 16.10
Nov 617.90 dn 1.60
Jan 620.20 dn 2.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday, giving up almost half of yesterday’s limit up gains due to speculative long liquidation.
The United States Department of Agriculture (USDA) released its weekly export sales report for the week ended March 25. Old crop soybean sales came to 105,800 tonnes and there were 131,000 tonnes of new crop sales. The old crop sales were up four per cent from the previous week.
Soymeal export sales were 139,700 tonnes of old crop, for a drop of 17 per cent from the previous week. New sales were only 300 tonnes, all of it to Canada. Soyoil export sales fell 69 per cent at 4,100 tonnes of old crop.
In the monthly fats and oils report, the USDA said 164 million bushels of soybeans were crushed in February. That’s a drop of 6.3 per cent from the February 2020 crush. The amount of crude oil came to 1.93 billion pounds, three per cent less than a year ago.
CORN futures were lower on Thursday, getting caught up in spillover from the soy complex.
The USDA reported old crop corn export sales of 797,300 tonnes, along with 69,000 tonnes of new crop.
In the department’s monthly grain crushings report, 376 million bushels of corn were processed in February. That made for a 22 per cent decline from February 2020. Corn used for ethanol amounted to 333 million bushels, some 23 per cent less than a year ago.
WHEAT futures were weaker on Thursday; also part of today’s liquidating.
Wheat export sales were down 27 per cent from the previous week at 250,100 tonnes of old crop. New crop sales totaled 81,000 tonnes.
In international sales, Algeria bought 500,000 tonnes of milling wheat and South Korea acquired 65,000 tonnes. Saudi Arabia issued at tender for 295,000 tonnes and Thailand passed on offers for its tender for 504,000 tonnes of feed wheat.
The markets in the U.S. and Canada will be closed on Good Friday and will reopen April 5. On Monday, USDA will issue its first weekly crop progress report of 2021 at 3 pm Central. That will be followed by the monthly supply and demand estimated on April 9.
