IKAR in Mass and Industry Media

North American Grain and Oilseed Review: Canola tumbles with veg oils

producer.com

WINNIPEG, Sept. 18 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures took a hard hit on Monday, pulled down by weakness in the Chicago soy complex. Additional pressure came from losses in European rapeseed and Malaysian palm oil.

Although global crude oil prices were modestly higher, an analyst stressed there’s now essentially no connection between crude and the veg oils.

With temperatures in the low to high 20 degrees Celsius on Monday, good harvest progress is expected to be made across most of the Prairies. Rain was in the forecast for parts of northern Alberta as well as the eastern Prairies.

Canola crush margins remained very strong, which underpinned values.

The Canadian dollar was higher at mid-afternoon Monday with the loonie at 74.12 U.S. cents, compared to Friday’s close of 73.93.

There were 39,506 contracts traded on Monday, which compares with Friday when 34,285 contracts changed hands. Spreading accounted for 26,266 contracts traded.

Prices are in Canadian dollars per metric tonne:

Canola

SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, as part of a sell-off in the futures market.

The growing areas for United States soybeans and corn were forecast to remain hot and dry this week, with upwards to 30 per cent of the crops now under stress.

The U.S. Department of Agriculture reported a private sale of 123,000 tonnes of 2023/24 soybeans to China.

The USDA issued its export inspections report and for the week ended Sept. 14, outbound movements of soybeans tallied 393,004 tonnes, bumping up from the previous week’s 373,619. The year-to-date reached 766,623 tonnes, well below the 915,080 from the same time last year.

Patria Agronegocios said the planting of Brazil’s next soybean crop just begun with 0.4 per cent complete.

WHEAT futures were also weaker on Monday, due to the sell-off.

The USDA said wheat export inspections tallied 367,371 tonnes, down from 406,181. The year-to-date also remained well short of the year ago at 5.12 million tonnes versus 7.26 million.

China said its August wheat imports were 840,000 tonnes, up 58 per cent from a year ago. The year-to-date reached 9.56 million tonnes, 53 per cent more than the same time last year.

IKAR reported Russian wheat export prices continued to move lower due to weak demand.

Australia said its September temperatures were 16 degrees Celsius above normal, putting stress on the country’s crops.

CORN futures were lower on Monday, pulled down by pressure from soybeans and wheat.

While parts of the western half of the U.S. Corn Belt received up to two inches of rain over the weekend, most of the eastern half got less than half that. Meanwhile water levels on the Mississippi remained low, delaying barge traffic.

The USDA report export inspections of corn were 642,095 tonnes, bumping up from last week’s 625,244. The year-to-date of nearly 1.27 million tonnes was slightly ahead of the 1.15 million a year ago.

China reported its August imports of corn amounted to 1.20 million tonnes, down 33 per cent from a year ago. The country’s year-to-date imports tallied 14.90 million tonnes, down 12 per cent from the same time last year.

https://producer.com/market_update/north-american-grain-and-oilseed-review-canola-tumbles-with-veg-oils/

19.09.23

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