By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 20 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were weaker on Friday, following sharp drops in Chicago soybeans and soyoil.
There were smaller declines in European rapeseed and Malaysian palm oil, while Chicago soymeal nudged a little higher.
A trader said there’s a lack of global demand for edible oils as the Delta variant of COVID-19 curtails economic activity.
The tight supply situation with canola and the uncertainty over this year’s crop attempted to stymie further losses in the Canadian oilseed.
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At mid-afternoon, the Canadian dollar was lower, due to the United States dollar hanging on to its strength. The loonie fell to 77.84 U.S. cents compared to Thursday’s close of 78.17.
There were 23,514 contracts traded on Friday, which compares with Wednesday when 20,667 contracts changed hands. Spreading accounted for 12,186 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 864.90 dn 25.90
Jan 853.40 dn 23.90
Mar 836.50 dn 22.80
May 813.50 dn 22.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Friday as continued strength in the United States dollar weighed on export potentials for all commodities.
Before stepping back at the close, Chicago soyoil dropped to its daily limit of 3.5 cents per pound.
The first notice of expiry for September options of soybeans, corn and wheat was at today’s close.
Rain is in the seven-day forecast from the National Oceanic and Atmospheric Administration (NOAA), with as much as four inches in parts of the U.S. Midwest. The Eastern Corn Belt is expected to receive less than one inch of rain.
The U.S. Department of Agriculture (USDA) estimated that 31 per cent of the country’s planted soybean area is in drought. For all crops, it’s about 56.3 per cent, for an increase of 0.06 per cent from last week.
The Pro Farmer Crop Tour wrapped up yesterday in Illinois and Minnesota. The tour said soybean pod counts compared to last year were up in Illinois, but lower in Minnesota.
China reported its July soybean imports amounted to 8.67 million tonnes, which is 14.1 per cent less than a year ago. Of those imports approximately 7.9 million tonnes came from Brazil, with less than 42,300 tonnes from the U.S.
CORN futures were weaker as well on Friday, getting spillover from soybeans.
The final PF tour estimates for corn yields placed South Dakota at 151.5 bushels per acre, with Minnesota at 177.4, followed by Nebraska at 182.6, Ohio at 185.1, Iowa at 190.8, Indiana at 193.3, and Illinois at 196.3.
The Buenos Aires Grain Exchange pegged the Argentina corn harvest at 98.1 per cent complete, and raised its estimate of this year production by 5.2 per cent at 50.5 million tonnes.
WHEAT futures were lower on Friday, with Chicago and Kansas City taking double-digit losses while Minneapolis incurred a much smaller decline.
Egypt said its wheat imports from March 2020 to July 2021 totaled 7.2 million tonnes and the country has six months’ worth of strategic reserves.
France reported its wheat harvest reached 91 per cent complete, for a gain of 19 points on the week. Quality was said to varied due to last season storms.
Russia asserted the protein content of its wheat has improved due to hot and dry conditions this year.
In international tenders, the Philippines called for 280,000 tonnes of feed wheat and Pakistan has requested bids for 400,000 tonnes of wheat.
