By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 29 (CNS Canada) – ICE Futures Canada canola contracts were mostly lower on Friday, as strength in the Canadian dollar and confirmation of large planted area weighed on values.
In a report out this morning, Statistics Canada pegged canola seedings at 22.7 million acres, which was well above an earlier estimate of 21.4 million but in line with trade guesses and still about 250,000 acres below the record area seeded in 2017.
Improving moisture conditions across Western Canada also put some pressure on values, as traders square positions ahead of the long weekend. Canadian markets will be closed Monday for Canada Day, while markets in the United States will remain open.
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The Canadian dollar was up by about half a cent relative to its U.S. counterpart, which weighed on prices.
About 10,793 canola contracts traded, which compares with Thursday when 26,828 contracts changed hands. Spreading accounted for 8,048 of the contracts traded.
SOYBEAN futures were weaker on Friday as the market reacted to the United States Department of Agriculture’s latest acreage and stocks estimates.
The USDA raised its forecast for U.S. soybean plantings to 89.5 million acres, which was up by about half a million from an earlier estimate. However, average market expectations had been for an even larger acreage base, and soybeans found some support from the number.
Quarterly U.S. soybeans stocks as of June 1, at 1.2 billion bushels, marked a new record for that time of year, but were in line with expectations.
Canadian soybean area this year was pegged at 6.3 million acres by Statistics Canada, which would be a drop of about a million acres from 2017.
CORN futures were up on the day, finding some support from a rally in wheat.
U.S. corn area came in above trade estimates at 89.1 million acres. That was up by about a million acres from the previous estimate, but still well below the 2017 crop and the first time U.S. corn acres were below soybeans in 35 years.
Quarterly U.S. corn stocks, at 5.3 billion bushels came in above average trade guesses.
WHEAT futures were higher, with the largest gains in the Chicago and Kansas City winter wheats as prices saw a chart-based bounce off of nearby lows.
U.S. wheat acreage for 2018 was pegged at 47.8 million acres by the USDA. That was up from earlier estimates and nearly two million acres above last year’s level.
Spring wheat saw the largest increase, rising by 2.2 million acres on the year to 13.2 million. The large spring wheat crop tempered the advances in the Minneapolis futures.
Total Canadian wheat area was pegged at 24.7 million acres by Statistics Canada. That was down from an earlier estimate, but still up from the 22.4 million acres seeded in 2017.
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