By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 18 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures completed a week of gains on Friday, by largely riding the spillover from increases in the Chicago soy complex.
Chicago soy was higher with additional support for canola coming from upticks in European rapeseed. Modest increases in global crude oil prices underpinned the vegetable oils, but Malaysian palm oil finished the day to the downside.
In helping to maintain canola’s momentum, an analyst said the nearby November contact needed to close at least C$800 per tonne.
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After two weeks into the 2023/24 marketing year, the Canadian Grain Commission reported total producer of canola were 544,000 tonnes, 94.4 per cent more than a year ago. Canola exports were already 219,600 tonnes, far exceeding the 11,300 this time last year. Domestic usage reached 409,400 tonnes, up 24.3 per cent from a year ago.
The Canadian dollar was slightly lower at mid-afternoon Friday, as the loonie slipped to 73.86 U.S. cents, compared to Thursday’s close of 73.94.
There were 22,049 contracts traded on Friday, which compares with Thursday when 25,575 contracts changed hands. Spreading accounted for 12,954 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 800.50 up 5.30 Jan 806.20 up 5.10 Mar 807.30 up 4.40 May 804.70 up 3.00
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, as the hot and dry weather forecast for the United States Corn Belt could adversely impact the soybean crop, which is in its critical podding stages.
The annual Pro Farmer crop tour is set to begin on Monday. Any impact on the crops by the forthcoming weather will be quickly reported.
The U.S. Department of Agriculture said 2022/23 soybean exports were at 99 per cent of their projected commitments. That was five points behind the five-year average. However, bookings for 2023/24 soybeans of 10.59 million tonnes were nearly 44 per cent behind those this time last year.
CORN futures were higher on Friday, in sympathy with soybeans.
The USDA reported a private sale of 112,000 tonnes of new crop corn to Mexico.
The USDA said 2022/23 corn exports were at 98 per cent of their projected commitments, five points back of the five-year year. So far, new crop sales are 24.1 per cent behind those from last year.
That dry, hot weather for the Corn Belt will likely not hurt the corn crop as it has largely moved past any vulnerable stages in its development.
China has been seeking to acquire corn from Brazil, but delays in shipping could redirect China’s purchasing to the U.S.
Argentina reported that its corn harvest was 97 per cent complete. The next crop is likely to begin planting in mid-September.
WHEAT futures were stronger on Friday as the markets finally took notice again of the Russia-Ukraine war, and traders were looking to make sure they were covered ahead of the weekend.
The USDA said 2023/24 wheat sales were 36 per cent of what it forecast, seven points behind the five-year average. So far, 16 per cent of purchased have exported, three points back of the average pace.
As India continued to face its driest August in more than 120 years, it’s becoming more likely the country will need to import wheat.
Argentina reported its wheat rated 20 per cent good to excellent, down a single point from a week ago.
