By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 27 (MarketsFarm) – Intercontinental Exchange canola futures turned around on Friday in a corrective bounce as traders squared their positions ahead of the weekend. For most of the week, canola contended with major setbacks that pushed the most traded contracts well below the C$700 per tonne support level.
Hikes in the Chicago soy complex as well as more moderate increases in Malaysian palm oil and most European rapeseed contracts aided canola in pulling off that about face. Strong upticks in global crude oil prices spilled over into the vegetable oils.
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Today was the final trading day for November options and Tuesday will be first notice day.
The Canadian Grain Commission said producer deliveries of canola were down from Week 11 to Week 12, at 365,500 tonnes. Domestic usage also slipped to 209,000 tonnes while exports nudged up to 218,700 tonnes.
Grain shipments transiting the St. Lawrence Seaway have been delayed, according to a media report. Talks to end the six-day-old strike by seaway workers have yet to resume despite growing pressure from governments and grain industry organizations.
The Canadian dollar was lower at mid-afternoon Friday with the loonie at 72.06 U.S. cents compared to Thursday’s close of 72.34.
There were 37,561 contracts traded on Friday, which compares with Thursday when 49,519 contracts changed hands. Spreading accounted for 26,448 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 682.50 up 15.60 Jan 693.20 up 11.10 Mar 702.30 up 11.00 May 708.80 up 11.70
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, as the last trading day for November options spurred prices upward.
A weather system stretching from the Great Lakes to Texas is to bring precipitation across much of the United States Midwest, slowing the soybean and corn harvests. However, the six-to-10-day forecast has conditions turning drier.
Meanwhile, rain continued to fall over dry areas of Brazil, improving planting prospects.
In a first for biofuels, an Indonesian Boeing 737 flew with its engines burning a palm oil blended jet fuel.
CORN futures were higher on Friday, due to spillover from soybeans.
The European Union tacked on 100,000 tonnes to its 2023/24 corn production forecast of 59.9 million.
FranceAgriMer reported the country’s corn crop was 85 per cent harvested, up 11 points on the week as well as the five-year average.
South Africa pegged its 2023/24 corn crop at nearly 16.4 million tonnes, for a six per cent increase from the previous year.
Ukraine estimated its corn harvest to be 13.3 million tonnes plummeting more than 68 per cent from pre-war levels.
WHEAT futures were lower on Friday, with Kansas City being hit harder than Chicago or Minneapolis.
The EU added 200,000 tonnes to its call on its 2023/24 wheat, now at 125.5 million tonnes. Exports were raised one million tonnes to 31 million and ending stocks grew by 1.3 million tonnes at 19.3 million.
France placed its winter wheat planting at 54 per cent complete, advancing 16 points from a week ago and pretty much on par with the five-year average.
Ukrainian President Volodymyr Zelenskyy stated the country’s Black Sea corridor has not closed despite reports to the contrary. As well, Ukraine projected its wheat harvest to be 22.4 million tonnes, down 32 per cent from before the war.
Turkey estimated its 2023/24 wheat crop at 21.8 million tonnes, up 10.4 per cent from a year ago.
Argentina was getting rain, which will benefit its wheat and corn crops. Also, rainfall in Australia was helping its struggling wheat crop.
