North American Grain and Oilseed Review: Canola front months overcome earlier losses

By Glen Hallick, MarketsFarm

WINNIPEG, Sept. 17 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were slightly lower in the most actively traded contracts on Friday, with small gains in the more deferred positions.

Canola began the day with losses, but worked its way upward as Chicago soyoil values also stepped well away from their lows. European rapeseed was higher in its front months and Malaysian palm oil incurred small declines.

Alberta reported the harvest of its major crops reached 60.5 per cent complete as of Sept. 14 for a gain of 18 points. The province-wide canola harvest came in at 33 per cent finished.

Warm temperatures over the weekend will provide the opportunity for good progress in the Prairie harvest.

At six weeks into the 2021/22 marketing year, the Canadian Grain Commission reported that canola exports of 297,000 tonnes have fallen 75 per cent from a year ago.

At mid-afternoon the Canadian dollar was lower, with the loonie at 78.48 U.S. cents, compared to Thursday’s close of 78.90.

There were 22,259 contracts traded on Friday, which compares with Thursday when 22,842 contracts changed hands. Spreading accounted for 18,128 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Nov 873.30 dn 1.80
Jan 866.30 dn 1.20
Mar 854.10 dn 0.30
May 837.40 up 0.80

SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Friday, as the aftermath of Hurricane Ida still continued to be felt.

In the United States Department of Agriculture (USDA) grain transport report, for the week ended Sept. 11, soybeans movement by barge was at 148,000 tonnes, which was 71 per cent less than a year ago.

The USDA reported a private sale of 132,000 tonnes of soybeans to China. Delivery is to be made during the current marketing year.

The department also reported that about 26 per cent of the U.S. soybean area was in drought, the same as last week.

Despite dry conditions, soybean planting in Brazil has begun. More drought could be in the future for Brazil and Argentina with another La Nina expected.

CORN futures were lower on Friday, due to poor movement and with the harvest ramping up.

The USDA said corn movement by barge came to 28,000 tonnes, which was down 90 per cent from a year ago.

The department reported that about 30 per cent of the U.S. corn area was in drought, a hold from the previous week.

Ahead of Monday’s crop progress report, the trade estimates the corn harvest to be eight to nine per cent complete.

As global nitrogen fertilizer supplies remain tight, Norway said it will cut its ammonia output as natural gas prices surge. Also, urea contracts on the Chinese market hit new highs in yesterday’s trading.

Corn planting was reported to be underway in Argentina with prospects of a record crop.

France reported the condition of its corn crop remained at 89 per cent good to excellent, compared to 59 per cent a year ago.

WHEAT futures were down on Friday, in sympathy with soybeans and corn.

Russia said it will trim its wheat export tax by US$1.60 per tonne effective Sept. 22, bringing it to US$50.90.

Ukraine reported its overall grain harvest was about 65 per cent complete, with its wheat combining finished at 33 million tonnes. Ukraine is expecting a total grain harvest of 80.6 million tonnes, for a 24 per cent jump over last year.

A report said Australia is in position to produce a record wheat crop this year of about 32.6 million tonnes. However, an early frost could trim some that production.

Futures Prices as of September 17, 2021

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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