By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 31 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Friday, due to light volumes of trading as well as some profit-taking. There was a small increase in new crop November.
Weighing on canola values were declines in Malaysian palm oil, Chicago soymeal, and most contracts in European rapeseed. A sharp downturn in North American crude oil prices also put pressure on edible oil values.
Support came from moderate gains in Chicago soyoil, while soybeans were slightly above unchanged. Price rationing due to tight canola supplies tempered further losses.
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By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar remained firm on Friday, along with its United…
At mid-afternoon the Canadian dollar was stronger with the loonie was at 79.11 U.S. cents, compared to Thursday’s close of 78.27.
There were 8,089 contracts traded on Friday, which compares with Thursday when 12,410 contracts changed hands. Spreading accounted for 5,536 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Mar 1,012.60 dn 6.30
May 983.40 dn 5.50
Jul 933.40 dn 4.10
Nov 771.70 up 0.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were a pinch above unchanged on Friday, in an attempt to correct from yesterday’s sharp losses.
The United States Department of Agriculture (USDA) is scheduled to release its monthly fats and oils report and its crush report on Monday at 2 pm Central. Come Jan. 12, the USDA will release its monthly supply and demand estimates, along with its grain stocks as of Dec. 1 report.
There’s been more rain in southern Brazil, further helping parched soybean and corn crops. However, Argentina remained struggling with dry and hot conditions.
The Buenos Aires Grain Exchange (BAGE) estimated the soybean crop in Argentina is more than 81 per cent planted. The BAGE rated the crop at 56 per cent good to excellent, down from 71 per cent last week. This time last year Argentina’s soybeans were 36 per cent good to excellent.
Meanwhile the Rosario Grain Exchange (RGE) pegged Argentina’s soybean planting at 78 per cent complete. It forecast production to be 45.7 million tonnes.
Reports said the size of China’s hog herd is reported to have declined slightly over the last month, which will improve crush margins there.
CORN futures were lower on Friday, with pressure from wheat outweighing support from the soy complex.
The BAGE said 71 per cent of the corn crop in Argentina is planted and it rates 58 per cent good to excellent. While that’s down from last week’s 76 per cent, it’s far better than the paltry 17 per cent a year ago.
The RGE trimmed its forecast for Argentina corn production by one per cent at 52.3 million tonnes.
The trade has projected Canada to import five million tonnes of U.S. corn during 2021/22. That would be 250 per cent more than during the previous marketing year.
WHEAT futures were also lower on Friday, on a forecast for rain over the U.S. Southern Plains and Eastern Corn Belt.
Also, the U.S. National Oceanic and Atmospheric Administration (NOAA) forecast snow across much of the Northern and Central Plains, but to be followed by below normal temperatures.
The U.S. Drought Monitor reported that as of Dec. 28, about 73.5 per cent of the crop acres were abnormal to alarmingly dry condition.
SovEcon bumped up its call on Russian wheat exports by almost 0.6 per cent at 34.1 million tonnes. This month’s exports total 3.9 million tonnes.
After the RGE projected the Argentine wheat crop to come in at 22.1 million tonnes, the BAGE came out with its estimate of 21.5 million tonnes.
