By Glen Hallick, MarketsFarm
WINNIPEG, July 14 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) closed higher on Thursday, largely due to a weaker Canadian dollar.
A surge in the United States dollar forced the loonie to fall back, at one point tumbling well below 76 U.S. cents. However, by mid-afternoon, the Canadian dollar was at 76.27 U.S. cents, compared to Wednesday’s close 77.07.
Additional support for canola was derived from increases in the off session of Malaysian palm oil and most positions for European rapeseed. Small gains in Chicago soymeal offered some support as well.
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A trader said there are prospects for a good canola crop on the Prairies this year, especially on the drier western half of the region. He suggested that a harvest of 19 million to 20 million tonnes is possible despite a reduction in planted acres.
The trader added that Australia is poised to have a large canola crop. When combined with Canadian output, he stated there would be an ample amount of canola on the global market.
There were 15,346 contracts traded on Thursday, which compares with Wednesday when 20,114 contracts changed hands. Spreading accounted for 6,244 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 843.60 up 13.70
Jan 850.90 up 13.20
May 862.90 up 12.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) finished lower on Thursday after pushing higher earlier in the session.
The United States Department of Agriculture (USDA) issued its export sales report for the week ended July 7. Old crop soybeans had a net reduction of 362,900 tonnes, which is a marketing year low. New crop sales came to 113,900 tonnes. Soymeal sales comprised of 8,200 tonnes of old crop and 145,900 tonnes of new crop. Soyoil export sales were 1,000 tonnes.
Ahead of tomorrow’s report from the U.S. National Oilseed Processors’ Association (NOPA) the trade pegged the June soybean crush to be around 164.5 million bushels.
In Germany, the association of farm co-operatives’ call on the 2022/23 rapeseed production was virtually unchanged at 3.77 million tonnes compared to its June estimate. However, it would be 8.2 per cent more than the previous year’s production.
CORN futures were higher on Thursday as daytime temperatures on western parts of the U.S. Corn Belt were forecast to exceed 38 degrees Celsius over the coming days. The Eastern Corn Belt has a 50 per cent chance of rain.
Old crop corn exports sales were 59,000 tonnes and new crop tallied 348,200 tonnes.
The Rosario Grain Exchange upped its call on corn production in Argentina by nearly 3.7 per cent from last month at 51 million tonnes. The exchanged noted 85 per cent of the crop was already harvested.
On the international market, South Korea is reported to have purchased 135,000 tonnes of feed corn.
WHEAT futures were lower on Thursday, following developments regarding Ukraine.
Turkey and the United Nations announced that Russia and Ukraine will sign a deal next week to export the latter’s grain through the Black Sea. Ukraine has approximately 22 million tonnes of grain needing to be exported. Russian forces are either occupying or blockading Ukraine’s ports.
Export sales of U.S. wheat amounted were almost 1.02 million tonnes, plus 30,000 tonnes for 2023/24.
IKAR raised its projection on 2022/23 Russian wheat production by two per cent at 90.5 million tonnes.
Strategie Grains reduced its estimate of the European Union’s 2022/23 wheat crop to 123.3 million tonnes, down 0.9 per cent from last month’s call. Last year the EU harvested 129.9 million tonnes.
The German farm co-operatives projected the 2022/23 wheat crop at 22.51 million tonnes, down 0.6 per cent from last month’s estimate but 5.3 per cent more than the 2021/22 harvest.
China’s summer wheat production bumped up one per cent at 135.76 million tonnes, due to slightly improved yields and a small increase in acres.
The Rosario Grain Exchange cut is projection on 2022/23 wheat production in Argentina by 4.5 per cent at 17.7 million tonnes due to dry conditions and a reduction in planted acres.
A report said South Korea acquired 65,000 tonnes of feed wheat.
