By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures climbed higher on Friday, as prices pushed through resistance.
A trader commented that canola this week benefitted from the strong increases in Malaysian palm oil. He said the latter resulted in soyoil becoming too cheap, and its gains pulled up canola.
Global crude oil prices dipped, which put some pressure on the oilseeds.
While the Canadian Grain Commission reported weekly increases in producer deliveries and exports, their year-to-date tallies lagged behind last year’s pace. After 32 weeks into the 2023/24 marketing year, deliveries reached 10.45 million tonnes compared to 12.31 million this time last year. Exports hit 3.68 million tonnes versus 5.51 million last year. Domestic usage remained ahead of the previous year at 6.67 million tonnes to 6.30 million.
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The Canadian dollar pulled back at mid-afternoon Friday, with the loonie at 73.85 U.S. cents compared to Thursday’s close of 74.01.
There were 42,425 contracts traded on Friday, compared to Thursday when 54,300 contracts changed hands. Spreading accounted for 20,336 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola May 630.60 up 7.40 Jul 640.10 up 6.80 Nov 647.40 up 5.80 Jan 654.70 up 5.20
SOYBEAN futures at the Chicago Board of Trade turned around to close higher on Friday, pulled by sharp upticks in soyoil.
The United States National Oilseed Processors Association reported the February crush took in 186.2 million tonnes of soybeans. Not only did that handily exceed the average trade guess of 178.1 million tonnes, but it’s also up 11.6 per cent from a year ago as well as setting a new February record. Soyoil stocks rose to 1.69 million pounds from January’s 1.51 million.
The U.S. Department of Agriculture attaché in Argentina pegged that country’s 2023/24 soybean crop at 49.5 million tonnes. The USDA kept its call for Argentina soybeans at 50 million tonnes its supply and demand estimates released on Mar. 8.
Ukraine continued its missile and drone strikes at Russian oil facilities as a means to cripple its oil-dependent economy.
WHEAT futures were lower on Friday, lacking fresh bullish news.
Strategie Grains trimmed its forecast on the 2024/25 European Union wheat crop by one million tonnes at 121.6 million.
France reported a two-point dip in its wheat, now at 66 per cent good to excellent, for the lowest ratings in four years.
Ukraine reported more than 128,000 hectares of crops have been planted so far in 2024. Last year, nearly 12.8 million hectares were seeded.
Japan bought 114,300 tonnes of wheat from the U.S., Canada and Australia. Taiwan purchased 97,950 tonnes of milling wheat from the U.S.
CORN futures were higher on Friday, riding spillover from soybeans.
The U.S. Drought Monitor reported the Midwest is 72 per cent abnormally dry, the driest the region has been in about 20 years. As well, there are pockets of extreme to exceptional drought in Iowa, Montana, New Mexico and Texas.
The USDA announced a private sale for 125,000 tonnes of old crop corn to unknown destination.
