By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 19 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Friday, due to weakness in other edible oils. In particular, Chicago soyoil and European rapeseed which were down hard today.
Losses in canola were tempered by gains in Chicago soymeal, as well as tight supplies and price rationing. Rolling out of the January contract remained a feature in canola trading.
A backlog of grain vessels and train cars continued to build up on either side of Vancouver. Washed out rail lines remain closed for the time being, but in excess of 200,000 tonnes of grain in cars has built up so far. However, with grain exports being generally lower this marketing year, the impact of the blockages is not as severe as it could be.
Read Also
Canadian Financial Close: Loonie slips prior to expected interest rate freeze
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar gave up a quarter cent on Tuesday, ahead…
At mid-afternoon the Canadian dollar was lower in light of a stronger United States dollar. The loonie was at 79.04 U.S. cents, compared to Thursday’s close of 79.27.
There were 29,432 contracts traded on Friday, which compares with Thursday when 20,655 contracts changed hands. Spreading accounted for 21,224 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 1,005.60 dn 8.50
Mar 981.50 dn 9.90
May 950.50 dn 9.50
Jul 914.70 dn 7.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly lower Friday, due to weaker crude oil prices weighing on edible oil values.
The United States and China each said they might release part of their respective oil reserves as a means to curb crude oil prices.
Trade expectations are for the U.S. soybean harvest to be finished by the end of this week.
In South America, CONAB reported soybean plantings in Brazil were nearly 79 per cent complete as of Nov. 13, while the Buenos Aires Grain Exchange (BAGE) estimated Argentina plantings at about 29 per cent in the ground. However, heat and dry conditions from another La Nina could pose a serious threat to both countries’ crops.
In the latest report from the International Grains Council (IGC), the organization held its call on global soybean production at 380 million tonnes and the carryout at 60 million tonnes.
CORN futures were slightly lower as well on Friday, in sympathy with soybeans.
CONAB estimated the planting of Brazil’s first corn crop of the marketing year at 64 per cent done. The BAGE kept to its call of Argentina corn plantings at 17.5 million acres.
Ukraine said its corn harvest was about 80 per cent in the bin, having brought in 31.8 million tonnes so far.
The IGC bumped up world corn production by almost 0.2 per cent at 1.21 billion tonnes and raised ending stocks by 0.7 per cent at 287 million tonnes.
WHEAT futures were mixed on Friday, with gains in Chicago and Kansas City, but losses in Minneapolis.
A stronger U.S. dollar put a crimp into the wheat complex, as the greenback makes exports more costly.
Drought concerns in the U.S. Southwestern Plains still persisted, while the winter wheat planting in the eastern half of the Midwest is likely to go incomplete due to rain.
France reported the planting of its 2022/23 wheat crop was 93 per cent finished as of Nov. 15. The crop rated 99 per cent good to excellent condition, up four points compared to this time last year.
Ukraine said the planting of its winter wheat was about 94 per cent finished.
Russia announced its wheat export tax will increase US$1.20 at US$78.30 per tonne, stating next week.
The IGC trimmed global wheat production by 0.5 per cent at 777 million tonnes with ending stock losing 0.7 per cent at 274 million tonnes.
