WINNIPEG – Intercontinental Exchange (ICE) canola futures closed higher on Friday, after overcoming earlier losses.
That’s despite hefty pressure from significant losses in global crude oil that put pressure on vegetable oils , as well as those in Chicago soyoil. Slight losses in Chicago soybeans added more pressure, while support came from upticks in soymeal, Malaysian palm oil and European rapeseed.
The market has projected good increases in stocks of canola, wheat and other grains when Statistics Canada releases its stocks report on Tuesday. The gains are to reflect the Prairies overcoming the drought in 2021.
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The Canadian dollar was weaker at mid-afternoon Friday as the United States dollar surged upward. The loonie fell back to 74.70 U.S. cents, compared to Thursday’s close of 75.12.
The Canadian Grain Commission reported that as of Jan. 29, year to date producer deliveries of canola are 9.93 million tonnes, and 13.6 per cent higher than a year ago. Exports rose to 4.29 million tonnes, 27.5 per cent ahead of this time last year. Domestic use reached 5.12 million tonnes, up 9.6 per cent on the year.
There were 32,804 contracts traded on Friday, which compares with Thursday when 23,282 contracts changed hands. Spreading accounted for 18,710 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Mar 831.60 up 6.50 May 828.90 up 5.20 Jul 830.30 up 4.50 Nov 810.90 up 3.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly lower on Friday, after a bout of choppy trading.
The United States Department of Agriculture (USDA) announced a private sale of 132,000 tonnes of new crop soybeans to unknown destinations.
Following a series of rains in Argentina, the Buenos Aires Grain Exchange (BAGE) pegged the country’s soybean crop at 12 per cent good to excellent, for an increase of five points from the previous report.
CORN futures were slightly higher on Friday, overcoming earlier losses.
As the effects of La Nina begin to diminish, expectations are pointing towards a wet spring for the U.S. Corn Belt. However, the outlook so far is not projecting drought conditions to be completely resolved.
The BAGE estimated corn planting in Argentina was nearly 97 per cent finished. The crop improved 10 points at 22 per cent good to excellent.
Brazil announced that effective today, the U.S. is no longer exempt from its ethanol tariff of 16 per cent. The tariff is set to increase to 18 per cent in 2024.
The USDA attaché in Mexico projected that country’s 2022/23 corn crop to be 27.4 million tonnes, down slightly from the department’s current estimate. Imports are to hold at 17.3 million tonnes and ending stocks are to increase to 3.49 million.
Algeria acquired 30,000 tonnes of corn for feed.
WHEAT futures were lower on Friday, on the prospects of improved conditions in spring.
The USDA’s Agricultural Market Information System (AMIS) raised its call on global wheat production by 1.6 per cent at 793.7 million tonnes in its February report. The report upped global wheat ending stocks by 1.8 per cent at 305.4 million tonnes.
IKAR reduced its estimate of 2023 Russian wheat production by 3.4 per cent at 84.0 million tonnes.
Egypt, the world’s largest importer of wheat, issued a tender for 535,000 tonnes of wheat.
The USDA attaché in Mexico kept the department’s projection of that country’s wheat production at 3.57 million tonnes. Imports remain at 5.0 million tonnes and ending stocks are to ease back to 525,000.
