North American Grain and Oilseed Review: Old crop canola closes higher

Intercontinental Exchange (ICE) canola futures saw gains in the old crop months on Wednesday, while the lightly traded new crop positions were lower.

Strong upticks in the Chicago soy complex and sharp increases in European rapeseed fueled the rise in canola values. However a downturn in Malaysian palm oil weighed on values. Edible oils were supported by good gains in global crude oil prices.

Although canola is generally seen as overpriced, continuing tight supplies and the ongoing need to ration demand underpinned its values.

The Canadian dollar at mid-afternoon was higher, with the loonie at 78.19 U.S. cents, compared to Wednesday’s close of 77.56.

There were 20,559 contracts traded on Wednesday, which compares with Tuesday when 19,315 contracts changed hands. Spreading accounted for 15,498 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jan 1,001.00 up 1.30
Mar 985.70 up 7.10
May 949.50 up 7.10
Jul 899.70 up 7.60

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, as upticks in European rapeseed global crude oil prices lent support to edible oils.

The United States Department of Agriculture (USDA) reported a private sale of 20,000 tonnes of soyoil to India. Delivery is to be during the current marketing year.

In the export sales report for the week ended Dec. 9, the USDA said old crop soybean sales were down 20 per cent on the week at approximately 1.31 million tonnes. New crop sales came to 140,000 tonnes. Soymeal export sales dropped 53 per cent to a marketing year low of 95,600 tonnes, plus 200 tonnes of new crop. Soyoil sales almost doubled at 10,600 tonnes.

AgRural lopped 700,000 tonnes off of its estimate for Brazil soybean production, which brought the consultancy’s projection to 144.7 million tonnes. Meanwhile, a Reuters poll forecast 144.1 million tonnes.

A report stated Argentine farmers have sold almost 83 per cent of their 2020/21 soybean crop, which 43.1 million tonnes was harvested.

CORN futures were higher on Thursday, getting spillover from soybeans and wheat, as well as support from export sales.

The USDA said old crop corn export sales were just short of 1.95 million tonnes, up 72 per cent from the previous week and a marketing year high. New crops sales totaled 754,400 tonnes.

AgRural trimmed 1.1 million tonnes off of its projection for Brazil corn production, lowering it to 114.4 million tonnes.

Argentina announced it will cut its export tax on its organic corn, soybeans and wheat crops by five per cent. Currently, organic crops make up 2.5 per cent of the country’s production.

WHEAT futures were higher on Thursday, as the U.S. dollar slipped back a little.

A powerful wind storm across the U.S. Midwest generated winds upwards 160 km/h causing extensive damage.

U.S. wheat export sales hit a marketing year high at 650,600 tonnes.

Strategie Grains increased its call on 2021/22 European Union soft wheat exports by 3.6 per cent at 31.5 million tonnes.

The Western Producer

Tags: canola futures, wheat futures, soymeal export sales, soyoil sales, soybean production, soybean futures, corn futures, soyoil