By Glen Hallick, MarketsFarm
WINNIPEG, July 28 (MarketsFarm) – On this second last day of the 2022/23 marketing year, Intercontinental Exchange (ICE) canola futures fell back on Friday, caught up in a sell-off throughout the commodities. However, the Canadian oilseed did not drop below its current support level of C$800 per tonne in the most heavily traded contracts.
The 2023/24 crop year for most grains is set to begin on Aug. 1.
Additional pressure on canola came from losses in the Chicago soy complex, European rapeseed and Malaysian palm oil. Modest upticks in global crude oil prices provided some measure of support to the vegetable oils.
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Following scattered showers today across the western Prairies, the region is to remain largely dry through the weekend and into next week.
For Week 51 of the crop year, the Canadian Grain Commission reported producer deliveries of canola reached 18 million tonnes, improving from the 13.9 million this time last year. Exports hit eight million tonnes, up from 5.6 million. Domestic usage has exceeded 10 million tonnes, besting the 9.2 million from a year ago.
The Canadian dollar is lower at mid-afternoon Friday, as the loonie slipped to 75.55 U.S. cents, compared to Thursday’s close of 75.75.
There were 22,196 contracts traded on Friday, which compares with Thursday when 32,517 contracts changed hands. Spreading accounted for 9,338 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 809.10 dn 14.40 Jan 811.70 dn 14.10 Mar 812.00 dn 12.80 May 806.60 dn 11.60
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, as part of the sell-off in the commodities as traders squared their positions ahead of the weekend.
The United States Drought Monitor placed 53 per cent of the soybean crop in drought, up three points from last week.
The U.S. Department of Agriculture reported three private sales of new crop soybeans. The first was for 413,000 tonnes to unknown destinations, the second was for 325,000 tonnes to China and the third was for 171,500 tonnes to Mexico.
The European Union cut its 2023/24 rapeseed production to 19.4 million tonnes and lowered its sunflower harvest to 10.6 million.
CORN futures were weaker on Friday, in sympathy with soybeans.
The National Oceanic and Atmospheric Administration forecast upwards of an inch of rain for the northern Corn Belt, as well as Nebraska and South Dakota. Iowa and eastern Missouri are to see a half inch, while Minnesota and the southern Corn Belt states are to miss out.
The Drought Monitor pegged U.S. corn as being 59 per cent in drought, an increase of four points on the week.
The EU trimmed its call on its 2023/24 corn production by 700,000 tonnes at 63 million.
The Buenos Aires Grain Exchange placed the corn harvest in Argentina at 68 per cent complete, with expectations of 34 million tonnes in total.
WHEAT futures were lower on Friday, also as part of the sell-off.
The North Dakota Spring Wheat Quality Tour calculated the average yield at 47.4 bushels per acre, slightly above the current USDA estimate. North Dakota is the top producing wheat state in the U.S.
The EU cut their 2023/24 wheat output by 2.5 million tonnes at 126.4 million.
The USDA attaché in Ankara projected Turkey’s 2023/24 wheat crop at 18.5 million tonnes, down from the department’s official call of 19.5 million, but an improvement from last year’s 17.25 million. Wheat imports are to climb to 7.25 million tonnes from the 6.9 million in 2022/23.
The BAGE said wheat planting in Argentina was more than 96 per cent complete. Recent rains have dramatically improved the country’s drought situation.
