By Glen Hallick, MarketsFarm
WINNIPEG, May 13 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures closed stronger on Friday, after getting off to a shaky start earlier in the session.
While low volumes of activity accounted for the immediate swing upward in canola, strong spillover from the Chicago soy complex and European rapeseed pushed the Canadian oilseed even higher. Meanwhile Malaysian palm saw small advances in most of its contracts. Significant upticks in global crude oil prices added to the rise in edible oils.
Spring planting will be further delayed across much of the very soggy eastern Prairies, with more rain in the weekend forecast. Rain is also to fall on the drought-stricken western Prairies, which should give a boost to planted crops and spur on the seeding of those yet to go into the ground.
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The Canadian dollar was stronger at mid-afternoon, with the loonie at 77.23 U.S. cents, compared to Thursday’s close of 76.69.
There were 20,552 contracts traded on Friday, which compares with Thursday when 12,825 contracts changed hands. Spreading accounted for 9,806 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 1,181.00 up 29.00
Nov 1,099.60 up 11.70
Jan 1,102.90 up 12.10
Mar 1,100.10 up 11.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) surged upward on Friday, benefitting from increases in global crude oil prices.
The United States Department of Agriculture (USDA) announced a private sale of 132,000 tonnes of old crop soybeans to China. Meanwhile China will auction 500,000 tonnes of soybeans from its reserves on May 20.
Ahead of the monthly report from U.S. National Oilseed Processors Association (NOPA) on Monday, the average trade guess puts the April soybean crush at 172.37 million bushels. If realized, that would make for a new April record. Soyoil stocks were projected to be 1.84 billion pounds.
The Buenos Aires Grain Exchange (BAGE) pegged the Argentine soybean harvest at 65 per cent finished.
CORN futures were weaker on Friday, as the U.S. Eastern Corn Belt is forecast to receive rain in the coming days. However, the Western Corn Belt remains short on moisture.
U.S. President Joe Biden said on Thursday that US$500 million will be provided for domestic fertilizer production to help reduce high input costs for farmers.
CONAB corrected its estimate of the Brazil 2021/22 corn crop to 114.59 million tonnes instead of the 116.19 million reported yesterday.
The BAGE estimated the Argentina corn harvest at 26 per cent complete.
WHEAT futures were mixed on Friday, with a small loss for Chicago and increases for Kansas City and Minneapolis.
The U.S. Northern Plains will see more rain for North Dakota and Minnesota, further slowing any planting progress in those states. The Southern Plains continued to contend with dry conditions.
France reported its soft wheat rated 82 per cent good to excellent, falling seven points from last week due drier conditions.
Argentina is said to be the first country to authorize the planting of genetically-modified wheat. However, it will not be on the market just yet.
