By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 13 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were stronger on Friday, but backed away from earlier highs.
Support came from gains in the Chicago soy complex, European rapeseed and Malaysian palm oil.
In yesterday’s supply and demand estimates, the United States Department of Agriculture (USDA) pegged Canadian canola production for 2021/22 at 16 million tonnes, based on 32.85 bushels per acre. Also, the USDA cut Canadian wheat production by 23.8 per cent at 24 million tonnes, but bumped up corn production by 2.3 per cent at 13.6 million tonnes.
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Alberta reported the condition of all crops province-wide to be 18 per cent good to excellent, with canola at 15 per cent. Yield expectations for canola are estimated to be under 24.7 bushels per acre.
At mid-afternoon, the Canadian dollar was virtually unchanged, with the loonie at 79.88 U.S. cents compared to Thursday’s close of 79.87.
There were 14,907 contracts traded on Friday, which compares with Thursday when 14,731 contracts changed hands. Spreading accounted for 6,544 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 894.30 up 10.90
Jan 882.80 up 10.10
Mar 867.80 up 9.60
May 848.10 up 8.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Friday following two large sales.
The United States Department of Agriculture (USDA) announced a private sale of 126,000 tonnes of soybeans to China, with delivery during the 2021/22 marketing year. Also, USDA reported a private sale of 326,200 tonnes of soybeans to unknown destinations. A small amount is to be delivered during the current marketing year with the vast majority to be shipped sometime in 2021/22.
In yesterday’s supply and demand estimates, the department increased global soybean ending stocks by 1.7 per cent at 96.2 million tonnes.
The Rosario Grain Exchange raised its estimate of 2021/22 Argentina soybean crop by almost nine percent at 49 million tonnes. The increase was based on expectations of improved yields, in light of a projected three per cent reduction in soybean acres.
CORN futures were narrowly mixed on Friday in the most actively traded contracts.
The USDA trimmed the global corn carryover by 2.3 per cent at 284.6 million tonnes.
A report said parts of Kansas, Indiana and Ohio received one to two inches of rain over the last 24 hours. Also, temperatures for the U.S. Southern Plains and Eastern Corn Belt have been forecast to moderate during the coming two weeks.
WHEAT futures were higher on Friday, with double digit gains for Minneapolis and smaller increases for Chicago and Kansas City.
The USDA reduced the global wheat carryout by 4.3 per cent at 279.1 million tonnes.
The USDA dropped its call on Russian wheat production in 2021/22 by 14.7 per cent at 72.5 million tonnes, due to dry conditions.
Meanwhile SovEcon upped its forecast on wheat production in Ukraine by 7.6 per cent at 32.6 million tonnes, versus the USDA’s projection was 33 million.
France reported its soft wheat harvest was 72 per cent complete after being delayed by heavy rains and flooding.
