By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures busted through their C$600 per tonne support level for the front contracts on Friday. Prices hit some of their lowest levels since September 2020.
Increased farmer deliveries of canola coupled with lacklustre exports weighed on the oilseed’s values.
Additional pressure on canola came from sharp declines in the Chicago soy complex along with more modest losses in European rapeseed and Malaysian palm oil. Weakness in global crude oil prices weighed on vegetable oil values.
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The Canadian dollar fell back at mid-afternoon Friday with the loonie at 74.28 U.S. cents compared to Thursday’s close of 74.60.
There were 55,789 contracts traded on Friday, compared to Thursday when 43,762 contracts changed hands. Spreading accounted for 44,010 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Mar 592.10 dn 9.10 May 598.60 dn 9.80 Jul 602.60 dn 10.10 Nov 602.50 dn 10.00
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday following a surge in the United States dollar.
Despite a heat wave in Brazil, soybean production was expected to be quite large, although many analyst estimates placed the harvest at less than 150 million tonnes.
Farm Futures projected Brazil to reap 145 million tonnes from its current soybean harvest.
CORN futures were lower on Friday, due to poor demand from China.
The weather outlook for the continental U.S. called for above normal temperatures for the next 10 days before they dip back to normal. Precipitation was forecast for the Central and Southern Plains.
The trade continued to project a large South American corn harvest.
Total January grain exports out of Argentina were reported to be up 64 per cent due to the new government’s sharp devaluation of the country’s peso.
WHEAT futures were mixed on Friday, with gains in Minneapolis and Kansas City wheat and losses in Chicago wheat.
Unlike corn, China was said to be seeking more wheat purchases, particularly from the EU and the U.S.
Grain shipments through the Red Sea/Suez Canal continued to be diverted around the Cape of Good Hope due to missile and drone attacks by Iran-backed Houthi rebels in Yemen.
The United Nations’ Food and Agriculture Organization reported a slight drop in the world food index, from 119.1 points in December to 118.0 in January.
Farmers throughout much of the European Union continued to protest, but two major farm groups in France asked their members to go home following discussions with the Marcon government.
