WINNIPEG — The ICE Futures canola market surged on Friday, with a bullish reaction to the data in the soy complex.
Chicago soyoil gained four U.S. cents per pound while European rapeseed and Malaysian palm oil were also on the rise. Crude oil also made gains after a reported decline in United States stockpiles.
At mid-afternoon, the Canadian dollar was up more than one-tenth of a U.S. cent compared to Thursday’s close.
The U.S. Department of Agriculture (USDA) released both its acreage and quarterly grain stocks reports on Friday.
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About 43,175 canola contracts were traded on Friday, which compares with Thursday when 18,158 contracts changed hands. Spreading accounted for 20,292 of the contracts traded.
After the USDA released its June acreage report, showing a larger-than-expected area for CORN, prices on the Chicago Board of Trade (CBOT) plunged.
U.S. growers seeded more corn in 2023 according to the USDA’s June acreage report with total corn plantings counted at 94.1 million acres, more than a million above the trade’s pre-report expectations and 7.5 million more than the 2022 seeded area. The total was the third-largest area for corn since 1944.
Quarterly U.S. corn stocks were measured at 4.106 billion bushels for June 1, down from the average trade guess of 4.25 billion and a 5.6 per cent cut from last year’s volume.
The seven-day forecast for the U.S. will see the Iowa/Missouri border and east-central Illinois receive up to 100 mm of rain. North Dakota will miss out entirely and most of the U.S. Corn Belt will get as much as 40 mm.
SOYBEANS had the biggest surprise in both the USDA’s acreage and quarterly grain stocks reports with larger-than-expected cuts in both figures. As a result, prices jumped more than 74 U.S. cents per bushel.
The USDA’s estimate for soybean acres was shockingly cut by four million to 83.5 million, well below the 200,000- to 500,000-acre cut expected by the trade. North Dakota lost 900,000 acres alone.
The Quarterly Grain Stocks report showed 795.6 million bushels for soybeans as of June 1, down from the trade average guess of 805 million and last year’s total of 967.5 million.
The USDA also reported a sale of 132,000 tonnes of new crop soybeans to China this morning.
WHEAT prices turned steady to lower after the USDA’s data release with Chicago soft wheat taking the biggest losses.
U.S. wheat acreage was estimated by the USDA at 49.63 million acres, up from 45.7 million in 2022. Spring wheat acres were measured at 11.1 million acres, 500,000 more than the previous estimate and 300,000 more than what was seeded in 2022.
Quarterly U.S. wheat stocks came out to 580 million bushels, at the low end of the trade and below the 698 million at this time last year.
Argentina’s 2023-24 wheat production is estimated at 18 million to 19 million tonnes, compared to 12.6 million last year.
FranceAgriMer lowered the country’s soft wheat rating by two points to 81 per cent good to excellent with one per cent harvested compared to the five per cent average.
