By Glen Hallick, MarketsFarm
WINNIPEG, July 9 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures peaked at their daily limit of $30 per tonnes on Friday. The Prairie forecast of warm, dry weather into next week was the main driver of the price hikes.
Additional support came from increases in Chicago soybeans and soyoil, as well as higher European rapeseed and Malaysian palm oil. Lower Chicago soymeal tempered further gains.
As did a rising Canadian dollar, with the loonie at 80.26 U.S. cents at mid-afternoon. On Thursday, the dollar closed at 79.74.
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For the week ended July 4, the Canadian Grain Commission reported producer deliveries of canola were 182,900 tonnes. Canola exports amounted to 90,600 tonnes and domestic usage totaled 183,100 tonnes.
There were 16,081 contracts traded on Friday, which compares with Thursday when 16,214 contracts changed hands. Spreading accounted for 4,040 contracts traded.
For Monday, ICE has increased the daily limit to C$45 per tonne.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 844.00 up 30.00
Jan 836.30 up 30.00
Mar 824.40 up 30.00
May 804.10 up 25.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Friday, as the markets positioned for Monday’s supply and demand report from the United States Department of Agriculture (USDA).
The average trade projection has placed U.S. soybean production at 4.39 billion bushels on yields of 50.7 bushels per acre. The carryout is expected to be 148 million bushels.
The USDA issued its weekly export sales report and for the week ended July 1 old crop soybeans sales came in at 63,800 tonnes with new crop sales of 118,500 tonnes. Old crop soymeal sales tallied 211,800 tonnes, with new crop at 55,800 tonnes. Soyoil export sales were only 400 tonnes.
Also, the department announced a private sale of 228,600 tonnes of soybeans to Mexico. Delivery is to be during the upcoming marketing year.
CORN futures were lower on Friday, with trade projecting small increases in corn ending stocks.
Corn production is expected to be 15.12 billion bushels with a carryover of 1.4 billion bushels, up 45 million from the June report. Also, a survey placed the USDA’s call on Brazil corn production for 2020/21 at an average of 91.7 million tonnes.
The USDA said old crop corn export sales were 173,200 tonnes along with 198,200 tonnes of new crop.
With ample rain in parts of the eastern U.S. Corn Belt, concerns about flooding were rising in Missouri and Illinois.
WHEAT futures were mixed on Friday, as Kansas City and Minneapolis pushed higher while Chicago pulled back.
Indications have been for white wheat and spring wheat production to be reduced in Monday’s USDA report.
U.S. wheat export sales amounted to 290,800 tonnes.
In international purchases South Korea bought 65,000 tonnes of feed wheat, while Japan acquired 108,175 tonnes of wheat from the U.S., Canada and Australia. For tenders, Saudi Arabia issued one for 360,000 tonnes of feed wheat, Turkey put forth a call for 395,000 tonnes of feed and milling wheat and the Philippines is seeking 200,000 tonnes feed and milling wheat.
