WINNIPEG, Sept. 15 (MarketsFarm) – The ICE Futures canola market was stronger on Friday, recovering from early losses as traders adjusted positions ahead of the weekend.
The move back above C$760 per tonne in the November contract was bullish from a chart standpoint, bringing in some additional speculative buying interest.
Thursday’s tighter production forecast from Statistics Canada remained supportive as well. The government agency pegged the 2023/24 canola crop at 17.4 million tonnes, which was down from the August estimate and well below the 18.7 million tonnes grown the previous year.
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Seasonal harvest pressure did temper the upside, with relatively favourable Prairie weather forecasts likely to lead to good progress in many areas over the weekend.
Losses in Chicago soybeans also weighed on values, although soyoil was up on the day.
About 34,285 canola contracts traded on Friday, which compares with Thursday when 35,235 contracts changed hands. Spreading accounted for 21,788 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, as the looming harvest and soft domestic crush data weighed on prices.
Oilseed processors in the United States crushed 161.45 million bushels of soybeans in August, according to the latest report from the National Oilseed Processors Association. That was at the low end of trade expectations and down by 2.5 per cent from the same month a year ago. Soyoil supplies tightened to 1.25 billion pounds, the lowest level in nearly six years.
Ideas that hot and dry Midwestern weather earlier in the growing season cut into soybean yields were somewhat supportive, with more recent rains possibly causing harvest delays.
However, as new crop soybeans start entering the handling system an increase in farmer selling should weigh on prices.
CORN futures were weaker, pressured by the looming harvest and the larger-than-expected production estimate from the U.S. Department of Agriculture earlier in the week.
Farmers in Argentina are starting to plant their next corn crop, with 2.2 per cent of intended acres in the ground according to a report from the Buenos Aires Grain Exchange.
WHEAT strengthened back above some key chart levels, with speculative positioning ahead of the weekend a feature.
Uncertainty over movement out of Ukraine and Russia was also supportive, given recent attacks on grain handling infrastructure in the region.
Canadian wheat production estimated at 29.8 million tonnes by Statistics Canada on Thursday. While that would be up from the August estimate, it’s still well off the 34.3 million tonnes grown in 2022.
