By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 14 (MarketsFarm) – The ICE Futures canola market was stronger on Thursday, continuing to correct off nearby lows as a tightening production number from Statistics Canada provided some support.
Canada’s 2023/24 canola crop was estimated at 17.4 million tonnes by the government agency. That was down by 200,000 tonnes from the August estimate and well below the 18.7 million tonnes grown the previous year.
Gains in outside markets, including Chicago soybeans and European rapeseed futures, provided additional spillover support.
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However, seasonal harvest pressure kept the gains in check, with 42 per cent of Saskatchewan’s canola crop off the fields, according to the province’s weekly report.
About 35,235 canola contracts traded on Thursday, which compares with Wednesday when 44,930 contracts changed hands. Spreading accounted for 19,594 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were underpinned by production uncertainty on Thursday, with recent hot and dry weather across the Midwest raising concerns over possible production cuts.
Weekly United States soybean export sales of 703,900 tonnes were in line with trade expectations.
Canadian soybean production for 2023/24 was estimated at 6.7 million tonnes by Statistics Canada, which was relatively unchanged from the August forecast and up slightly from the 6.5 million tonnes grown last year.
CORN futures held near unchanged, lacking any clear direction.
Canadian corn production was raised to 14.9 million tonnes by Statistics Canada, which compares with the August estimate of 14.7 million and the 14.5 million tonnes grown in 2022.
Weekly U.S. corn export sales of 753,300 tonnes were at the higher end of trade expectations.
WHEAT futures ran running into resistance after moving higher earlier in the week, with the most-traded Chicago December contract backing away from the psychological US$6.00 per bushel level.
Canadian wheat production was raised to 29.8 million tonnes by Statistics Canada. While that would be up by about 400,000 tonnes from the August estimate, it would still be well off the 34.3 million tonnes grown last year.
Weekly U.S. wheat export sales came in at 437,900 tonnes, in line with expectations.
Dryness in Argentina and Australia was cutting into production prospects in those countries, providing some support to the U.S. futures.
