By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sep. 9 (MarketsFarm) – The ICE Futures canola market was stronger on Friday, seeing a modest correction to end the week.
Gains in the Chicago soy complex contributed to the firmer tone in canola, although European rapeseed and Malaysian palm oil futures were both lower on the day.
Seasonal harvest pressure and relatively favourable Prairie weather continued to overhang the market, tempering the advances. Strength in the Canadian dollar also put some pressure on canola.
About 22,032 canola contracts traded on Friday, which compares with Thursday when 47,450 contracts changed hands. Spreading accounted for 14,464 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were stronger on Friday as an increased appetite for risk in world financial markets spilled over to underpin the agricultural commodities ahead of the weekend. Crude oil was up on the day, which was also supportive.
Bullish chart signals contributed to the gains in soybeans, with the November contract moving back above the US$14 per bushel mark.
General expectations for a slight decline in United States soybean yields in next week’s U.S. Department of Agriculture supply/demand report were also somewhat supportive.
However, expectations for increased exports out of Argentina, after as farmers take advantage of the country’s ‘soybean dollar’ program, continued to put some pressure on values.
Rising production estimates out of Brazil were also bearish. Brazil’s CONAB upped their production estimate for the 2021/22 crop by 1.5 million tonnes, to 125.55 million
CORN was also supported by the broad buying interest and gains in crude oil.
Average trade guesses ahead of next week’s USDA report call for a three bushel per acre cut to U.S. corn yields in next week’s report from the 175.4 bushels per acre forecast in August.
Condition ratings for France’s corn crop were lowered to 43 per cent good to excellent by FranceAgriMer, well below last year’s 89 per cent good to excellent at the same time as heat and dryness during the growing season likely cut into yields.
WHEAT was higher across the board, with the broad weakness in the U.S. dollar internationally making U.S. more attractively priced for global buyers.
Uncertainty over the long-term sustainability of the safe-passage corridor currently allowing Ukrainian grain exports through the Black Sea also provided some support.
