By Glen Hallick, MarketsFarm
WINNIPEG, March 31 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures returned to the green side on Friday. An analyst said canola began to shed its losses from Thursday in the overnight session.
There was spillover from gains in the Chicago soy complex, especially a spike in soyoil. European rapeseed made significant upswings as well, but Malaysian palm oil slipped back. Modest increases in global crude oil prices lent a measure of support to the vegetable oils.
The trade will shift its focus more towards the weather ahead of spring planting. With less-than-ideal snow cover across much of the Prairies, combined with some areas with below normal soil moisture levels, there’s a possibility of a tough start to the year.
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The Canadian Grain Commission reported producer deliveries of canola for the week ended March 26 were 377,900 tonnes. Canola exports came to 268,700 tonnes and domestic usage was 221,100 tonnes. The year date figures remained well ahead of those this time last year.
The Canadian dollar was virtually unchanged at mid-afternoon Friday, as the loonie was at 73.90 U.S. cents, compared to Thursday’s close of 73.89.
There were 30,645 contracts traded on Friday, which compares with Thursday when 37,026 contracts changed hands. Spreading accounted for 19,704 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola May 767.90 up 3.30 Jul 749.50 up 3.80 Nov 721.10 up 3.20 Jan 724.00 up 2.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Friday, getting a boost from two reports from the United States Department of Agriculture (USDA).
The USDA projected soybean acres for 2023/24 at 87.5 million, pretty much the same as planted the year before. The trade projected 87.4 million to 89.6 million acres, with the average guess at 88.2 million.
The USDA placed soybean stocks as of March 1 at 1.69 billion bushels, coming under the 1.93 billion a year ago. Market expectations were 1.60 to 1.91 billion bushels, with an average of 1.74 billion.
Ahead of the next USDA monthly crush report, the trade pegged the February soybean crush at 175.7 million bushels – which would be a new February record if it holds. The National Oilseed Processors Association (NOPA) placed their February crush at 165.4 million bushels.
The Buenos Aires Grain Exchange kept its call on Argentina soybean production at 25 million tonnes.
The Rosario Grain Exchange said the soybean harvest was underway in Argentina.
DERAL raised its estimate for soybean production in the Brazilian state of Parana from 20.8 million tonnes to 22.2 million.
CORN futures were higher on Friday, catching spillover from soybeans and Minneapolis wheat.
Forecast plantings for 2023/24 U.S. corn are just shy of 92 million, exceeding the 88.6 million seeded last year. The markets projected 87.7 million to 90.9 million with an average of 90.9 million.
The USDA said corn stocks as of March 1 were 7.40 billion bushels, a little under the 7.76 billion the previous March 1. Trade guesses were from 7.24 billion to 7.83 billion, with an average of 7.47 billion.
DERAL cut its called on safrinha output in Parana from 15.3 million tonnes to 14.7 million.
WHEAT futures were steady to higher on Friday, with Chicago remaining unchanged with modest to sharp upticks in Chicago and Minneapolis.
The USDA placed total wheat plantings for 2023/24 at 49.9 million acres, above the 45.7 million that went into the ground last year. The market guesses ranged from 45.7 million to 50 million acres, with an average of 48.9 million.
Breaking that down, winter wheat was slotted at 37.5 million acres, up from 37.1 million last year. Spring wheat was calculated at 10.57 million acres, down from 10.9 million last year. Durum acres are projected to be 1.78 million acres compared to 1.63 million a year ago.
Wheat stocks came in below those a year ago at 946.02 million bushels versus 985.80 million. Expectations ranged from 875 million to 1.02 billion bushels, with an average of 934 million.
A report from S&P Global said India will likely reduce their forecast on the country’s wheat production to 110.2 million to 111.2 million tonnes due to damage from rain and hail.
The long-range weather forecast for Argentina has called for one to six inches of rain next week. While that would have little to no effect on the country’s corn and soybeans, it would be very helpful to its forthcoming wheat crop.
