By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 22 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished weaker on Friday, but they came well off of their lows and even made gains prior to the close.
A trader said the liquidation of the November contract will pick up the pace during the next week.
Losses in Chicago soyoil, European rapeseed and Malaysian palm oil weighed on values. Continuing issues with very tight canola supplies underpinned prices.
As did concerns dry conditions from this year could carry on in 2022 if soil moisture levels fail to improve dramatically before spring planting.
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ICE canola mixed at midday Friday
Glacier FarmMedia —The ICE Futures canola market was narrowly mixed at midday Friday, consolidating near unchanged to end the week….
At mid-afternoon the Canadian dollar was slightly lower with the loonie at 80.86 U.S. cents, compared to Thursday’s close of 80.97.
There were 31,715 contracts traded on Friday, which compares with Thursday when 31,106 contracts changed hands. Spreading accounted for 26,646 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 929.70 dn 7.70
Jan 925.30 dn 2.10
Mar 911.90 dn 0.40
May 886.70 dn 0.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Friday along with weaker soyoil, but there were moderate increases in soymeal.
There’s speculation in the markets that China’s economy is slowing down. That could mean reductions in its imports, including soybeans and other crops from the United States.
Also, tense relations between the U.S. and China could result in the non-start to the Phase Two trade agreement. The Biden administration has accused China of failing to meet its obligations under Phase One.
The trade is beginning to consider the carryout for U.S. soybeans could be around 13.6 million tonnes rather than the 8.7 million currently estimated by the U.S. Department of Agriculture.
The costs of crop inputs have at least doubled over the last 12 months in the U.S., largely due to tremendous increases in fertilizer prices. Several other countries have been experiencing similar situations.
CORN futures were higher on Friday, catching support from the wheat complex.
The seven-day forecast from the National Oceanic and Atmospheric Administration has four inches of rain falling from southern Iowa to western Ohio. However, the Western Corn Belt is expected to remain mostly dry. Also, the NOAA said temperatures are likely to remain above normal across most of the U.S. for the next three months.
After more than 26 per cent of the 2021/22 Argentine corn crop has been harvested, the Buenos Aires Grain Exchange estimated growers will reap a total 55 million tonnes.
France reported that its corn harvest was 32 per cent complete compared to three-quarters finished a year ago.
Ukraine estimated its corn harvest should bring in 11.2 million tonnes.
WHEAT futures were stronger on Friday as good demand generated significant gains.
The markets have been pointing to a shortage of wheat across North Africa and Middle East, which will mean greater imports.
France said 40 per cent of its soft wheat crop has been planted, which is on par with this time last year. About 59 per cent of country’s winter barley has been sown, five points ahead of 2020.
Ukraine projected its wheat harvest is to come in at 55 million tonnes.
Russia’s tax on wheat exports could hit US$70 per tonne by the end of next week as prices continue to climb.
