By Terryn Shiells and Marney Blunt, Commodity News Service Canada
WINNIPEG – ICE Futures Canada canola contracts ended lower on Friday, following the losses seen in Chicago soybean and soyoil futures, analysts said.
The stronger Canadian dollar and good growing conditions for U.S. soybean crops were also bearish for canola.
However, concerns about crop yellowing, due to excess moisture and cool weather in some parts of the Prairies, were supportive.
Caution ahead of an expected rainy weekend in Western Canada was also limiting the downside.
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Statistics Canada released its latest acreage projections Friday morning, pegging canola area at 20.2 million acres, up from the March estimate of 19.8 million and last year’s 19.9 million. But, the report was said to be neutral for the market as further adjustments will need to be made to account for lost acres caused by excess moisture.
About 16,712 contracts traded on Friday, which compares with Thursday when 15,626 contracts changed hands. Spreading accounted for 5,768 of the trades made.
Milling wheat, durum and barley futures were untraded and unchanged.
SOYBEAN futures at the Chicago Board of Trade fell as traders awaited the June 30 Stocks and Acreage Report from the U.S. Department of Agriculture (USDA).
Soybeans prices fell 5.00 to 16.25 cents US per bushel on Friday.
Futures were lower as some traders had placed bets that Monday’s report will show an expanded acreage of soybeans.
While some traders are anticipating that the U.S. soybean crop will show a heavier planting that will push prices lower, there are other traders that are expecting the report to show the soybean supply at the lowest it’s been since 1977.
Last year, soybeans had yielded one of the largest crops on record, and this year growing conditions are looking bearish so far, analysts say. Approximately 70 per cent of soybeans are in good to excellent condition, according to a report from earlier this week.
Soybean acreage in the U.S. is currently estimated at a record of 81.5 million acres, a six per cent increase from the previous year.
SOYOIL futures closed lower on Friday.
SOYMEAL futures closed higher again on Friday, keeping with the spread from soybean oil.
CORN futures in Chicago were up Friday, as trading remained in a narrow range, analysts say.
Corn contracts were up two to four cents US per bushel on Friday.
Traders are expecting that the USDA report will show a rise in corn acreage and many market observers are betting on another massive U.S. corn crop this year.
However, traders are also keeping an eye on anticipated hot weather conditions that could cause issues if they arrive as corn plants begin their critical pollinating stage.
Last year, U.S. corn crops had a record harvest that drove prices down 40 per cent, brokers say.
WHEAT futures in Chicago were higher on Friday among harvest delays and quality concerns, brokers say.
Wheat was up 3.00 to 8.75 cents per bushel on June 27.
Some traders believe that the June 30 USDA report will show spring wheat acreage down approximately 150,000 acres from the 12.009 million acres estimated in the March Prospective Plantings report. All wheat planted acreage is forecast at 55.818 million. The March report had pegged wheat acreage at 55.815 million.
• The Brazilian government announced on June 24 that it was suspending the 10 per cent applied tariff once again this year through August 15 for up to one million metric tonnes of wheat from non-Mercosur sources. This action was taken because Mercosur member countries, which are Brazil’s main suppliers of wheat, suffered from reduced production over the past couple of years and are currently off-season.
• Statistics Canada pegged 2014/15 wheat acreage at 24.09 million acres, down from their previous guess of 24.77 million and last year’s 26.015 million. Durum area was 4.80 million acres, with spring wheat at 17.64 million and winter wheat remaining after winterkill accounting for the rest.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
