By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 14 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished mixed on Friday, with only a small loss in the nearby March contract as trading volumes continued to spike upwards.
Sharp increases in European rapeseed and Malaysian palm oil aided the about-face in canola, but losses in the Chicago soy complex weighed on values. Support for edible oils came from upticks in global crude oil prices.
Tight supplies continued to underpin canola, but export demand has already been rationed considerably.
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As the United States dollar found its footing, the Canadian dollar pulled back. At mid-afternoon, the loonie tumbled to 79.60 U.S. cents, compared to Thursday’s close of 80.10.
There were 40,596 contracts traded on Friday, which compares with Thursday when 39,133 contracts changed hands. Spreading accounted for 30,524 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Mar 982.90 dn 1.90
May 972.00 up 0.70
Jul 945.40 up 4.20
Nov 800.30 up 4.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Friday, but losses moderated from yesterday’s steep slide.
The United States Department of Agriculture (USDA) reported a private sale of 100,000 tonnes of soymeal to Spain. Delivery is to be during the 2022/23 marketing year.
The U.S. markets will be closed for Martin Luther King Day on Monday, but trading is to resume that evening.
Rain remained forecast for southern Brazil and parts of Argentina going into the weekend and next week. However, some of the drier areas of Argentina are to miss out on the much needed precipitation.
Agroconsult chopped 10.1 million tonnes from its projection of the Brazil soybean harvest, lowering it to 134 million tonnes due to dry conditions. Agroconsult joined a growing list of private consultancies calling for production to be below or near last year’s record harvest.
The Buenos Aires Grain Exchange (BAGE) rated Argentina’s soybean crop at 31 per cent good to excellent, down 17 points from last week.
CORN futures were turned around on Friday, largely due to deteriorating crop conditions in South America.
Agroconsult cut its call on Brazil’s first corn crop by 16 per cent, bringing it to 24.5 million tonnes. Overall, the consultancy said the country’s total corn crop will be around 119.4 million tonnes, due to increased acres.
The BAGE pegged Argentina’s corn crop at 40 per cent good to excellent for a loss of 18 points on the week.
The USDA said there was a private sale of 100,400 tonnes of corn to Mexico. Delivery is to be during the current marketing year.
Farm Futures reported that wholesale urea prices out of the U.S. Gulf lost almost US$148 per ton over the last three weeks and were now approximately US$695/ton.
WHEAT futures continued its downturn on Friday, with double-digit losses in Minneapolis and Kansas City, while Chicago eased back much more modestly.
A snowstorm is to move across the U.S. Central Plains over the weekend, providing potential moisture in drought stricken areas.
Ukraine said it won’t restrict wheat exports later this year.
Russia announced it will reduce its wheat export tax next week from US$98.20 per tonne to US$97.50.
In international purchases Japan bought 107,555 tonnes of wheat from the U.S. and Canada, while Turkey tendered for 335,000 tonnes of milling wheat.
