By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 16 (MarketsFarm) – After bouncing back and forth from either side of unchanged, canola futures on the Intercontinental Exchange (ICE) finally found traction during the latter half of Friday’s session.
Support came from good gains in Chicago soyoil, but further increases were stymied by losses in soybeans, soymeal and European rapeseed. Small upticks in global crude oil prices lent a little bit of spillover to vegetable oils. The Malaysian palm oil market was closed for a holiday.
Harvest progress across the Prairies continued to have a bearish effect on canola. However, rain over parts of Alberta and Manitoba on Friday held up combines from making more rounds.
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While there was a paltry amount of canola exports for the week ended Sept. 11, the Canadian Grain Commission noted that producer deliveries of the oilseed were rising quickly.
As a strong United States dollar remained virtually unchanged, the Canadian dollar was weaker at mid-afternoon. The loonie dropped to 75.26 U.S. cents, compared to Thursday’s close 75.76.
There were 33,972 contracts traded on Friday, which compares with Thursday when 30,817 contracts changed hands. Spreading accounted for 28,756 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 792.50 up 4.10
Jan 801.10 up 4.70
Mar 808.30 up 5.10
May 810.80 up 6.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly lower on Friday, after deriving very little support from crude oil prices.
The United States National Oilseed Processors Association (NOPA) reported the August soybean crush came to 165.5 million bushels. While a smidge below trade expectations, it’s 4.2 per cent more than the August 2021 crush. The total crush by NOPA members in 2021/22 amounted to 2.07 billion bushels. The 2021/22 crush by those not part of NOPA will be reported by the U.S. Department of Agriculture (USDA).
China has been one of the major purchasers of Argentine soybeans after the latter’s government began its ‘soy dollar exchange’ program to encourage farmer sales.
Tensions between the U.S. and China over Taiwan were on the rise again. Those hard feelings could lead China to buying more soybeans from South America at the expense of the U.S.
CORN futures were slightly higher on Friday, as support from wheat countered pressure from soybeans.
Much of the U.S. Corn Belt was forecast to receive rain today, although the southern portion was to remain dry.
The European Union chopped its projection for its 2022 corn output by 17.6 per cent at 66 million tonnes due to drought across much of the continent.
WHEAT futures were stronger on Friday, due to U.S. weather and uncertainty over further exports out of Ukraine.
The 90-day outlook called for warm, dry conditions for the U.S. Midwest, which could hamper the planting of winter wheat.
Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan are scheduled to meet today to discuss the Black Sea corridor for Ukrainian grain exports. The current agreement brokered by the United Nations and Turkey expires in October. Presently, 82 vessels were reported to be held up in Ukrainian ports waiting to be escorted out.
Russia will cut its wheat export tax by 10 per cent at the equivalent of US$44.45 per tonne for the period of Sept. 21 to 27.
The E.U. trimmed its outlook on 2022 wheat production by 1.7 per cent at 143 million tonnes.
With the worst drought conditions in 30 years in Argentina, farmers were said to be planting less wheat this year.
