By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 1 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures closed higher on Friday due to spillover from gains in comparable oils.
While there were increases in Chicago soyoil, soybeans were mixed and soymeal was lower. Additional support came from upticks in Malaysian palm oil and European rapeseed. Higher global crude oil prices lent support to the vegetable oils.
Canola exports for the week ended Aug. 27 were only 1,200 tonnes, all shipped by rail or truck into the United States. However after weeks into the 2023/24 marketing year, canola exports remained far ahead of those this time last year.
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The weather outlook for the Prairies is for the region to be hot and dry through the Labour Day long weekend.
Alberta is set to issue its crop report later this afternoon. Last week the overall provincial harvest was about 11 per cent complete with canola at one per cent finished.
The Canadian dollar was weak at mid-afternoon Friday due to renewed strength in the United States dollar. The loonie falls to 73.52 U.S. cents, compared to Thursday’s close of 73.90.
There were 32,661 contracts traded on Friday, which compares with Thursday when 21,948 contracts changed hands. Spreading accounted for 21,158 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 811.40 up 2.70 Jan 818.40 up 4.50 Mar 822.00 up 6.50 May 822.00 up 9.40
SOYBEAN futures at the Chicago Board of Trade were slightly higher on Friday while soyoil made stronger gains and soymeal pulled back.
The United States Department of Agriculture announced a private sale for 198,000 tonnes of 2023/24 soybeans to unknown destinations. This marked the seventh consecutive day of flash sales exceeding 100,000 tonnes.
Ahead of the U.S. July crush report, the average trade guess is expecting 184 million bushels of soybeans to have been processed.
The monthly biofuel capacity and feedstock report said soyoil use in the U.S. for June was a record 1.21 billion pounds. The year-to-date use reached 8.81 billion pounds, up about 17 per cent from last year.
Today marked the new marketing year for U.S. soybeans and corn.
CORN futures were higher on Friday, as hot and dry conditions continued across much of the U.S. Corn Belt.
The average trade guess pegged U.S. corn used for ethanol to be 463 million bushels for July.
With only one per cent of Argentina’s corn crop remaining to be harvested, the Buenos Aires Grain Exchange placed production at 34 million tonnes, compared to its initial projection of 52 million.
WHEAT futures were lower on Friday, due to selling pressure.
Talks between Russian President Vladimir Putin and Turkish President Tayyip Erdogan regarding grain movement on Black Sea are scheduled to begin in Sochi on Sept. 4. Meanwhile, vessels continued their way to and from Ukrainian ports unimpeded despite the looming threat of Russian attacks.
Although rain is in the forecast, dry conditions in Argentina have posed a threat to the country’s wheat crop. The BAGE rated the crop at 19 per cent good to excellent and estimated wheat plantings at around 1.5 million acres so far.
The Australia Bureau of Meteorology reported the country had its warmest winter on record accompanied by below normal rainfall.
