By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 1 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures closed higher on Friday in a show of independent strength, which pushed the Canadian oilseed slightly above its trading range.
For the most part, the Chicago soy complex was lower, expect for very small gains in soyoil. Support came from higher European rapeseed, while Malaysian palm oil was lower.
A trader speculated there may have been a good deal of action on the canola/soybean spreads. Also he said there were commercials and perhaps specs rolling out of their November positions.
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Alberta reported that 89.5 per cent of its major crops were harvested as of Sept. 28. That’s 41 points ahead of the province’s five-year average. The combining of canola reached 81 per cent finished.
At mid-afternoon the Canadian dollar was stronger with the loonie at 79.13 U.S. cents, compared to Wednesday’s close of 78.49.
There were 18,155 contracts traded on Friday, which compares with Thursday when 42,295 contracts changed hands. Spreading accounted for 19,482 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 903.10 up 9.60
Jan 888.40 up 8.40
Mar 872.80 up 7.20
May 846.50 up 7.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Friday, as yesterday’s grain stocks report showed soybean stocks were bigger than what the market anticipated.
The United States Department of Agriculture (USDA) released its fats and oils report, which showed 168 million bushels of soybeans were crushed in August, down four per cent from August 2020. About 1.99 billion pounds of soyoil was produced, which was down one per cent from a year ago.
The USDA announced a vaccine for African swine fever for European and Asian bred pigs. The disease is virtually fatal for hogs, while its not harmful to humans.
The markets are closed in China from Oct. 1 to 7 for the country’s Golden Week holiday.
The European Union said its 2021/22 rapeseed crop is to come in at 16.95 million tonnes – about the same the EU reported last month.
CORN futures were higher on Friday, getting spillover support from sharp gains in the wheat complex.
The USDA grain crushing report said 471 million bushels of corn were consumed in August for alcohol and other uses, down two per cent from the same time last year.
The EU increased its projection on its corn production by 3.3 per cent at 68.8 million tonnes.
The Buenos Aires Grain Exchange reported corn planting in Argentina was almost 17 per cent complete. The BAGE expects more than 17.5 million acres are to be seeded.
Ukraine said its corn exports for 2021/22 are to be 30.9 million tonnes.
WHEAT futures were stronger on Friday, due to yesterday’s stocks and small grains reports.
The EU added three per cent on its wheat crop, bringing it to 131 million tonnes. Wheat exports were maintained at 30 million tonnes.
Next week, Russia is set to increase its wheat export tax from US$53.50 per tonne to US$57.80.
Ukraine projected its wheat exports in 2021/22 are to be 24.4 million tonnes, with barley exports of 5.2 million tonnes.
Pakistan purchased about 550,000 tonnes of wheat and looking to acquire 90,000 tonnes.
