By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 23 (MarketsFarm) – The ICE Futures canola market was stronger on Thursday, underpinned by solid demand and gains in outside markets.
European rapeseed and Malaysian palm oil futures both set fresh contract highs overnight. Chicago Board of Trade soyoil futures were also stronger.
Seasonal harvest pressure did temper the upside, with relatively favourable weather conditions across the Prairies allowing farmers to make quick progress. However, the continued dryness was already leading to concerns over the 2022 crop after the drought of 2021 cut into yields.
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Strength in the Canadian dollar and ideas that canola remains overpriced compared to other oilseeds also weighed on values.
About 19,134 canola contracts traded on Thursday, which compares with Wednesday when 26,769 contracts changed hands. Spreading was a feature, accounting for 13,412 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, underpinned by solid export demand.
The United States Department of Agriculture reported weekly soybean export sales of just over 900,000 tonnes, which came in at the higher end of pre-report expectations.
Soyoil led to the upside in the soy complex, as Malaysian palm oil and European rapeseed futures hit fresh highs overnight. However, soyoil still has a ways to go before retesting its own highs.
The advancing U.S. harvest kept some caution in the bean market. Uncertainty over possible reductions to U.S. biouel blending requirements was another bearish influence.
CORN saw some follow-through buying interest after yesterday’s gains, as the nearby technical signals point higher.
Weekly U.S. corn export sales of 373,000 tonnes were at the lower end of expectations, but still up from the previous week. Canada was a major buyer, as tight domestic feed supplies should lead to increased imports over the next year.
The USDA announced additional sales of 138,400 tonnes to Guatemala this morning.
Seasonal harvest pressure tempered the gains.
WHEAT saw a continuation of Wednesday’s gains, with a rally in European wheat futures also providing some spillover support.
Weekly U.S. wheat export sales of 356,000 tonnes were down on the week, but in line with expectations.
Russia’s wheat harvest is running well behind the year-ago level, with the 72.9 million tonnes harvested to date about 13 million tonnes behind what was off the fields by the same time in 2020.
