By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures dropped hard on Friday, due to a mix of farmer selling, improved weather for the United States Midwest, and the likelihood of large harvests this year.
Added to that were steep declines in Chicago soybeans and soymeal, as well as European rapeseed. Modest upticks in Malaysian palm oil and Chicago soymeal weren’t enough to temper further losses. Added to that were lower crude oil prices putting more pressure on the oilseeds.
Read Also
ICE canola mostly weaker in choppy midday trade
Glacier FarmMedia — The ICE Futures canola market was mostly lower at midday Monday in choppy activity. Losses in Chicago…
With one week left in the 2023/24 marketing year, the Canadian Grain Commission said year-to-date producer deliveries of canola reached 18.11 million tonnes, slightly ahead of the previous year. Canola exports of nearly 6.82 million tonnes were 1.19 million behind those a year ago. However, domestic use of 10.92 million tonnes was about 900,000 more than last year.
Canola crush margins regain some ground with the November positions exceeding C$90 per tonne above the futures.
With today’s sharp losses, the November canola contract fell below its 50, 100 and 200-day moving averages and was a pinch above its 20-day average.
The Canadian dollar slipped back mid-afternoon Friday with the loonie at 72.26 U.S. cents compared to Thursday’s close of 72.36.
There were 56,595 contracts traded on Friday, compared to the 52,541 contracts that changed hands on Thursday. Spreading accounted for 24,016 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 646.50 dn 25.20 Jan 654.10 dn 23.40 Mar 659.90 dn 21.80 May 661.30 dn 20.60
SOYBEAN futures at the Chicago Board of Trade fell hard on Friday, largely due to the weather outlook for the United States Midwest.
The forecast called for the region to become warmer for the next two weeks. The northern portion could see some rain over the next five days while the central area is to be drier for up to 10 days.
The Société Generale de Surveillance said Malaysian palm oil exports from July 1 to 25 amounted to 1.19 million tonnes, up from the 908,517 tonnes from June 1 to 25.
Ukraine reported its sunflower harvest got underway in the Odesa region, but an earlier heatwave could cut yields by up to 35 per cent. The country’s rapeseed has brought in 3.08 million tonnes so far.
CORN futures were weaker on Friday, in sympathy with soybeans.
The Buenos Aires Grain Exchange pegged Argentina’s corn harvest at 87 per cent complete.
The USDA attaché in Buenos Aires projected Argentine corn output for 2024/25 at 49.0 million tonnes, down from this year’s 51.0 million.
Ukraine estimated corn exports so far for 2024/25 were 1.44 million tonnes.
WHEAT futures incurred sharp losses on Friday, due to the prospects of a good wheat crop.
Day three of the Wheat Quality Council tour of North Dakota placed spring wheat yields at 54.5 bushels per acre, compared to 47.4 last year.
Reuters said the Bunge-Viterra merger is set to receive approval from the European Union. The US$34 billion deal would create one of the world’s largest trading firm. The merger already received the green light from Brazil and regulatory approval in Canada is still pending.
France said its soft wheat lost two points at 50 per cent good to excellent, its lowest point since 2016. French spring wheat dropped three points to 66 per cent good to excellent, and its durum shed two points at 58 per cent.
The Australian Securities and Investments Commission accused an employee with COFCO International Australia of allegedly manipulating wheat futures on the Australian Securities Exchange.
Ukraine said its wheat exports so far into 2024/25 were 1.16 million tonnes. Also, Ukraine upped its call on total grain production for 2024/25 by 3.6 million tonnes at 56 million.
The BAGE placed wheat planting in Argentina at nearly 99 per cent finished, at more than 6.3 million hectares.
The USDA attaché in Buenos Aires projected the 2024/25 Argentine wheat crop to be 18.60 million tonnes, up from 15.70 million the previous year.
The USDA attaché in Ottawa pegged Canadian wheat production for 2024/25 at 35.50 million tonnes compared to last year’s 31.95 million.
The department’s attaché in Ankara estimated Turkey’s wheat production for 2024/25 at 18.85 million tonnes, down last year’s 21.0 million.
