By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were mostly lower on Friday, with the only increase in the March contract. Trading in March grain options ended today.
Pressure on canola came from declines in the Chicago soy complex and European rapeseed, while Malaysian palm oil edged higher. Significant losses in global crude oil prices weighed on oilseed values.
Canola crush margins were lower as the old crop positions slipped to C$172 to C$180 per tonne above the futures.
Read Also
Canadian Financial Close: Loonie jumps, crude oil up
Glacier FarmMedia – The Canadian dollar had its highest closing price in nearly three weeks on Thursday. The loonie closed…
The Canadian Grain Commission reported year-to-date producer deliveries of canola were 9.31 million tonnes as of Feb. 15. Those were down 1.81 million tonnes from this time last year. Canola exports continued to lag well behind at 3.29 million tonnes versus 4.89 million a year ago. Domestic usage remained ahead of last year’s pace at 6.05 million tonnes compared to 5.70 million.
The Canadian dollar was relatively steady at mid-afternoon Friday with the loonie at 74.07 U.S. cents compared to Thursday’s close of 74.11.
There were 38,858 contracts traded on Friday, compared to Thursday when 48,782 contracts changed hands. Spreading accounted for 22,816 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Mar 570.40 dn 3.60 May 581.30 dn 2.80 Jul 589.60 dn 3.80 Nov 596.10 dn 4.00
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, due to poor export sales.
The United States Department of Agriculture reported for the week ended Feb. 15 old crop soybean sales of only 55,900 tonnes. That’s a marketing-year low and well under trade expectations.
Soymeal export sales comprised of 202,000 tonnes of old crop and were within market estimates. New crop sales 500 tonnes were close to the low end of guesses. Those for soyoil experienced net reductions of 5,300 tonnes and slightly below trades expectations.
Egypt purchased 60,250 tonnes of vegetable oils.
CORN futures fell to or finished near contract lows on Friday, with the March sliding below US$ per bushel for the first time since the fall of 2020.
U.S. corn export sales included 820,400 tonnes of old crop, which were within market guesses. Those for new crop were 177,700 tonnes and far in excess of projections.
The U.S. government approved year-round production of higher blends of ethanol in gasoline starting in 2025.
The Buenos Aires Grain Exchange estimated the Argentina corn crop at 57 per cent good to excellent. More rain is in the country’s forecast over the next several days.
Ukraine said its corn exports at this point of the 2023/24 marketing year were 15.2 million tonnes. Total grain exports of 28.2 million tonnes dropped from the 30.8 million a year ago.
WHEAT futures were lower on Friday, lacking enough fresh news to climb upward.
Export sales of U.S. old crop wheat came to 233,500 tonnes and below market projections. Meanwhile new crop sales were within guesses at 46,600 tonnes.
France reported its soft wheat nudged up one point at 69 per cent good to excellent, but ratings remained near four-year lows. The country’s durum crop came in at 74 per cent good to excellent, giving up one point from last week.
Ukraine said its wheat exports in 2023/24 reached 11 million tonnes plus 1.56 million of barley.
Tunisia bought 100,000 tonnes of soft wheat.
