By Glen Hallick, MarketsFarm
WINNIPEG, June 16 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were stronger on Friday in extremely heavy trading. However, the gains faded from much larger increases earlier in the session.
Rising concerns over dry conditions in Canada and the United States fueled much of the sharp upswings on the market. That generated sizeable gains in the Chicago soy complex. Also, there were good increases in European rapeseed and Malaysian palm oil.
Canola crush margins saw the nearby positions remain well in excess of C$200 per tonne above futures.
Read Also
Canadian Financial Close: C$ firm Friday
Glacier FarmMedia — The Canadian dollar strengthened Friday, as dovish comments out of the United States Federal Reserve weighed on…
The Canadian Grain Commission reported producer deliveries of canola after 45 weeks tallied 15.93 million tonnes, 24 per cent more than a year ago. Canola exports increased to 7.36 million tonnes, up 57 per cent over last year. Domestic usage reached 8.84 million tonnes, almost 10 per cent more than this time last year.
The Canadian dollar was stronger at mid-afternoon Friday, climbing to 75.85 U.S. cents, compared to Thursday’s close of 75.46.
There were 90,669 contracts traded on Friday, which compares with Thursday when 64,773 contracts changed hands. Spreading accounted for 44,552 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 733.30 up 18.20 Nov 710.40 up 17.40 Jan 717.30 up 16.80 Mar 723.50 up 16.20
SOYBEAN futures at the Chicago Board of Trade continued with strong gains on Friday, as dry conditions pose a major concern to the markets.
The United States Drought Monitor estimated that 51 per cent of United States soybean fields are in drought.
The U.S. National Oilseed Processors Association reported 177.92 million bushels of soybeans were crushed in May. Besides exceeding the average trade guess that also set a new May record.
The U.S. grain markets will be closed for the Juneteenth holiday on Monday, with trading set to resume that evening. All scheduled reports from the U.S. Department of Agriculture will be postponed by a day.
CORN futures were also stronger on Friday, in sympathy with soybeans.
The U.S. Drought Monitor pegged 57 per cent of the country’s corn to be in drought.
The seven-day forecast has called for rain from Kansas and Colorado extending to North Dakota, with amounts possibly up to four inches. However, areas of the Eastern Corn Belt are expected to miss out on the precipitation.
WHEAT futures were significantly higher on Friday, following the lead of soybeans and corn.
Severe storms tore through the U.S. Southern Plains, generating tornadoes and heavy rains, which resulted in crop damage and delays to the winter wheat harvest.
A top foreign policy aide with the Kremlin said Russia is unlikely to pull out of the Black Sea export deal, according to a report. The United Nations reported that vessel inspections were down to an average of one and a half ships per day compared to 11 per day in October.
France’s wheat crop rated 85 per cent good to excellent, down three points from the previous week and the third-consecutive loss.
