By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures are higher on Friday, maintaining its gains in light of pressure from most comparable oils.
Today also saw the nearby July contract climb above its previous support level of C$600 per tonne.
Support for canola came from upticks in Chicago soybeans and soymeal, while soyoil was virtually unchanged. Losses in European rapeseed and Malaysian palm oil were lower on the day. Modest declines in crude oil put pressure on the oilseeds.
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An analyst called Friday a “sunny day for canola” which avoided any downturn. He noted the Commitment of Traders report, out Monday, could see a greatly increased short position in the oilseed.
Thunderstorms have been forecast for the Prairies through the weekend and into next week. Temperatures during this time are to in the low to mid-20 degrees Celsius. There is concern in the trade that a significant portion of the Prairie canola is well behind its development due to wet, cool conditions.
The Canadian Grain Commission reported produced deliveries of canola 46 weeks into the 2023/24 crop year were at 15.79 million tonnes, compared to 16.28 million a year ago. Exports advanced to 5.85 million tonnes, but well short of the 7.42 million this time last year. At 9.84 million tonnes, domestic usage remained ahead of last year’s 9.01 million.
The Canadian dollar virtually unchanged by mid-afternoon Friday with the loonie at 73.01 U.S. cents.
There were 44,052 contracts traded on Friday, compared to the 32,120 contracts that changed hands on Thursday. Spreading accounted for 21,878 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 606.10 up 6.70 Nov 622.50 up 4.40 Jan 628.80 up 4.40 Mar 632.50 up 4.30
SOYBEAN futures at the Chicago Board of Trade turned higher on Friday, following a decent export sales report.
After being postponed a day due to the Juneteenth holiday, the United States Department of Agriculture issued its export sales report for the week ended June 13. Old crop soybeans had export sales of 556,500 tonnes and were within market expectations, as were new crop sales of 84,000 tonnes.
U.S. soymeal export sales included 178,800 tonnes of old crop and 32,800 tonnes of new crop, with both meeting trade guesses. Those for old crop soyoil tallied 20,900 tonnes, well exceeding market projections. However, new crop oil was below trade guesses with a net reduction of 400 tonnes.
The USDA is scheduled to publish its planted acreage report and quarterly stocks as of June 1 report a week today. There have been suggestions there might be some revisions in the works.
Brazil export agency ANEC reported June soybean exports at a record 14.88 million tonnes, surpassing trade predictions for 13.78 million. This time last year exports were 13.75 million tonnes. ANEC also reported Brazil soymeal exports for June at a record 2.59 million tonnes compared to 2.01 million a year ago.
From January to May, China imported 24.7 million tonnes of soybeans from Brazil, up from 20.1 million a year ago. China’s soybean imports from the U.S. during the same period were 10.9 million tonnes, well below the 16.5 million this time last year.
CORN futures were lower on Friday, catching spillover from losses in wheat, but tempered by the increases in soybeans.
The U.S. weather forecast has highs well above 30 degrees Celsius with nighttime temperatures in the low to mid 20’s.
U.S. corn export sales amounted to 511,400 tonnes of old crop and 93,600 tonnes of new crop, as both met market predictions.
There have been reports of corn silking in Kansas and Oklahoma.
The Buenos Aires Grain Exchange put the corn harvest in Argentina at 49 per cent complete.
South Korea issued two tenders for corn totaling 198,000 tonnes, most likely from South American sources.
WHEAT futures were weaker on Friday, as good spring wheat prospects and the ongoing winter wheat harvest weighed on values.
The USDA reported wheat export sales of 589,700 tonnes for old crop and net reductions of 11,000 tonnes for new crop, as both came within trade guesses.
France left its soft wheat crop rating at 62 per cent good to excellent for a second week. However, a year ago the crop was at 83 per cent good to excellent.
The Rosario Grain Exchange placed Argentina’s wheat crop at 17.1 million acres, compared yesterday’s BAGE estimate of 15.6 million.
