WINNIPEG — The ICE Futures canola market took a step back from its prolonged weather-driven rally, despite mixed sentiment in comparable oils.
Chicago soyoil rose, but European rapeseed and Malaysian palm oil were both lower. Crude oil was higher due to supply cuts from Russia and a slowly recovering Chinese economy.
At mid-afternoon, the Canadian dollar was down nearly one-quarter of a United States cent compared to Thursday’s close.
About 35,521 canola contracts were traded on Friday, which compares with Thursday when 29,751 contracts changed hands. Spreading accounted for 16,452 of the contracts traded.
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For the first time since the end of June, the September CORN contract had back-to-back negative sessions on the Chicago Board of Trade (CBOT).
Recent rains in crop-growing areas of the United States have helped reduce the area affected by drought. According to the U.S. Drought Monitor, 55 per cent of corn production is in a drought area, down nine points from the previous week. Over the next eight to 14 days, areas of the central U.S. Corn Belt will see temperatures at around 38 degrees Celsius, but precipitation will be normal to above normal.
The International Grains Council (IGC) increased its forecast for world corn production by nine million tonnes to 1.22 billion, with ending stocks increasing by six million tonnes to 282 million.
The Buenos Aires Grain Exchange said that 66 per cent of Argentina’s 2022-23 corn crop has been harvested, on track for 34 million tonnes.
Nearby SOYBEAN contracts made gains with the August contract ending the day above the US$15 per bushel mark for the first time since Dec. 30, 2022.
Half of soybean production in the U.S. is now in a drought area, down seven points from last week.
The IGC projected world soybean production for 2023-24 at 400 million tonnes, down two million from its previous forecast. World ending stocks also tightened by two million tonnes to 63 million.
The U.S. Department of Agriculture’s (USDA) attaché in Argentina estimated the country’s 2023-24 soybean crop to be 50.5 million tonnes, 2.5 million above the agency’s projections.
Abiove projected the 2022-23 Brazilian soybean crop to be 156.5 million tonnes, a slight increase from its June forecast.
WHEAT prices took a step back from rallies fueled by Russia’s withdrawal from the Black Sea Grain Initiative. Both September Kansas City hard red wheat and Minneapolis spring wheat contracts settled below US$9/bu.
Only 31 per cent of the U.S. spring wheat crop is growing in a drought area, but it’s an increase of six points from last week.
The U.S. Wheat Quality Council will start its hard spring wheat and durum tour on Monday with field scouting starting on Tuesday.
The IGC lowered its forecast for 2023-24 worldwide wheat output by two million tonnes to 784 million, while stocks were tightened by one million tonnes to 263 million.
Russia attacked more agricultural facilities near port cities in Ukraine earlier today and reports are saying they have practiced seizing ships on the Black Sea. The United Nations Security Council is set to meet over the humanitarian crises stemming from Russia’s withdrawal of the Black Sea Grain Initiative.
