By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 28 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mostly higher on Friday, backing away from much larger increases earlier in the session.
Significant upticks in global crude oil prices gave way to smaller increases, taking away a measure of support for edible oils. However, canola still benefitted from gains in the Chicago soy complex, Malaysian palm oil and European rapeseed.
A trader noted canola was lagging behind other veg oils, needing to catch up.
The Canadian Grain Commission reported producer deliveries of canola for the week ended Jan. 23 were down 44.3 per cent at 189,400 tonnes. Canola exports increased 66 per cent at 124,800 tonnes and domestic usage was up 37.1 per cent at 161,400 tonnes.
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The Canadian dollar was weaker at mid-afternoon, with the loonie at 78.21 U.S. cents, compared to Thursday’s close of 78.67.
There were 30,039 contracts traded on Friday, which compares with Thursday when 29,069 contracts changed hands. Spreading accounted for 15,672 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Mar 1,017.60 up 10.50
May 1,000.40 up 1.40
Jul 973.50 dn 3.10
Nov 836.20 up 4.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Friday, benefitting from significant upticks in crude oil prices during most of the session.
The United States Department of Agriculture reported three private sales of soybeans today, with 141,514 tonnes to Mexico and 251,500 tonnes to unknown destinations, plus 264,000 to China. The first two sales are to be delivered during the current marketing year and the last one is scheduled for 2022/23.
IHS Markit projected U.S. soybean acres in 2022/23 to bump up 0.7 per cent from last year at 87.8 million.
Abiove cut its forecast of Brazil’s current soybean crop by three per cent at 135.8 million tonnes. The consultancy also reduced its export projection by 4.6 per cent at 86.9 million tonnes, but kept the crush at 48 million and ending stocks at 3.9 million.
Meanwhile, Safras and Mercado pegged their numbers at 85.5 million tonnes in Brazil soybean exports and a crush of 47.5 million. Also, Planalytics forecast the country’s soybeans yields to be 42.4 bushels per acre.
The Buenos Aires Grain Exchange said Argentina’s soybean crop rose eight points over the week at 38 per cent good to excellent.
CORN futures were higher on Friday, due to spillover from soybeans and wheat.
IHS Markit forecast U.S. 2022/23 corn acres at 91.49 million, a pinch lower than the consultancy’s previous estimate. U.S. corn acres in 2021/22 were 93.36 million.
The USDA attaché in Argentina estimated that country’s corn crop at 51 million tonnes, 5.6 per cent less than the department’s official call.
The BAGE said Argentina’s corn crop improved 10 points on the week at 32 per cent good to excellent.
WHEAT futures were higher on Friday, as Russia-Ukraine border tensions continued to underpin values.
Ukraine called for calm after U.S. President Joe Biden warned Russia would invade the country sometime next month. Ukraine added Russia has been trying to create instability and division, with Russia hoping to be attacked first.
IHS Markit estimated U.S. wheat acres for 2022/23 at 48.16 million. That compromises of about 34.4 million acres of winter wheat, 12.01 million of spring wheat and 1.75 million of durum.
The USDA attaché in Argentina placed the country’s wheat harvest at a record 21.8 million tonnes, 6.3 per cent more than the department’s current estimate.
