North American Grain and Oilseed Review: Canola climbs higher on its own
Wheat up, corn down, soybeans mixed at CBOT
By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 31 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher on Tuesday in a show of independent strength as support from comparable oils was mixed.
There were strong upticks in Chicago soyoil, but soybeans were either side of steady while soymeal was lower. Malaysian palm oil was also down, with European rapeseed striking a mixed tone. Global crude oil prices were also mixed and not providing vegetable oils with a clear direction.
Canola crush margins continued to be quite strong and underpinning values.
Statistics Canada is scheduled to release its grain stocks report on Feb. 7.
The Canadian dollar was higher at mid-afternoon Tuesday, as the United States dollar pulls back. The loonie rises to 75.16 U.S. cents compared to Monday’s close of 74.87.
There were 36,218 contracts traded on Tuesday, which compares with Monday when 38,287 contracts changed hands. Spreading accounted for 25,392 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Mar 831.90 up 4.00 May 831.20 up 4.40 Jul 833.00 up 4.30 Nov 812.40 up 3.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were mixed on Tuesday, with the gains in the nearby contracts.
The United States Department of Agriculture (USDA) is scheduled to issue its fats and oils report on Wednesday. The average trade guess puts the soybean crush for December at about 188.0 million bushels. If that holds it would be a drop from the record 198.2 million bushels crushed in December 2021. Soyoil stocks are projected to be approximately 2.25 billion pounds.
The U.S. Federal Reserve is set to announce its latest interest rate increases on Wednesday, with trade expectations pointing towards a 25-basis point hike.
Malaysia reported its January palm oil exports were 251,350 tonnes.
CORN futures were lower on Tuesday, with little fresh news to go on.
The Joint Co-ordination Centre which tracks grain exports out of Ukraine’s ports reported 19 million tonnes has been shipped since the deal was signed with Russia. During the week ended Jan. 29, Ukrainian grain exports fell 32 per cent at 607,771 tonnes.
The slow progress of the soybean harvest in Brazil is said to be delaying the planting of corn.
Also, Brazil’s exports of corn to China have raised questions about the amount leftover for domestic use, which could lead to increased prices for feedstuffs for Brazilian ranchers.
WHEAT futures were higher on Tuesday, following low winter wheat ratings for several states.
Kansas reported that its winter wheat rated 21 per cent good to excellent, up two points from a month ago. Meanwhile, Oklahoma said its winter wheat plummeted 18 points at 17 per cent. Texas placed its crop at 14 per cent, nudging up three points. Illinois said its crop was 69 per cent good to excellent, up one point.
The are good chances of precipitation over the winter wheat growing areas of the U.S. However, snow is preferred in those regions where the ground is frozen.
Jordan purchased 60,000 tonnes of milling wheat and is tendering for 120,000 more. Egypt issued a tender for 60,000 tonnes of wheat.
