North American Grain/Oilseed Review: Canola looking for direction

By Glen Hallick, MarketsFarm

WINNIPEG, June 27 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were mostly lower on Thursday, in the new crop months.

The rise in the Canadian dollar this week spurred a sell-off of canola, according to a Winnipeg-based trader. However, the markets have largely stabilized and have been looking for direction. The trader said it’s unlikely bids will be pushed too far either way for the time being.

There were 15,296 contracts traded on Thursday, which compares with Wednesday when 24,272 contracts changed hands. Spreading accounted for 7,842 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jul 441.10 up 0.30
Nov 452.00 dn 1.80
Jan 459.40 dn 1.60
Mar 466.10 dn 1.60

SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Thursday, due to poor export sales data from the United States Department of Agriculture (USDA).

Bids slipped by around six cents per bushel.

The USDA reported about 487,000 tonnes of soybeans were sold, under market expectations of 550,000 tonnes. Almost 724,000 tonnes were shipped this week, with 29 per cent headed to China.

The International Grains Council (IGC) lowered its global soybean production estimates by 2.5 per cent to approximately 349.0 million tonnes, as lower yields are expected in the U.S. this year.

CORN futures were down on Thursday, with positioning ahead of the USDA’s acreage and grain stocks reports to be released on Friday.

Corn lost between three to four cents per bushel.

The USDA reported export sales of almost 404,000 tonnes, slightly below market expectations of about 500,000 tonnes. Export shipments tallied nearly 696,000 tonnes, with Mexico the top customer with 31 per cent of shipments.

The IGC’s estimate of global corn production was down two per cent at 1.095 billion tonnes from 1.118 billion.

WHEAT futures were mixed on Thursday, due in part to technical selling prompted by improving weather and field conditions in the U.S.

Chicago wheat gained a quarter cent to three and half cents per bushel, while Minneapolis rose by one to two cents. Kansas City wheat eased downward by a half cent to a penny.

The USDA report new crop wheat sales of 612,350 tonnes, well above market expectations of 351,000 tonnes. Shipments amounted to nearly 422,000 tonnes, with the top customers the Philippines taking 12 per cent.

The IGC upped its projections for global wheat production by 0.4 per cent to 769.0 million tonnes, due to increased production expected in India, the European Union, and Ukraine.

Commodity Future Prices

Canola
Price Change

Prices are in Canadian dollars per metric ton

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