By Glen Hallick, MarketsFarm
WINNIPEG, July 17 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Friday, due to stronger edible oils and in particular Chicago soyoil.
There was also support from European rapeseed and Chinese rapeseed oil. Although Malaysian palm oil was down a little today, it made good gains this week.
Rapeseed production in the European Union fell to a 15-year low in 2019/20 at 17.0 million tonnes.
Producer deliveries of canola jumped 39 per cent for the week ended July 12, according to the Canadian Grain Commission.
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Deliveries amounted to 496,500 tonnes. Canola exports were 187,800 tonnes, for an increase of 32 per cent from the previous week. At 170,700 tonnes, domestic usage was up a little more than one per cent.
By mid-afternoon the Canadian dollar was lower at 73.68 U.S. cents, compared to Thursday’s close of 73.84.
There were 24,120 contracts traded on Friday, which compares with Thursday when 13,871 contracts changed hands. Spreading accounted for 10,206 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 483.50 up 4.10
Jan 490.80 up 4.30
Mar 496.30 up 4.30
May 499.80 up 3.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Friday due to good demand.
The United States Department of Agriculture (USDA) reported a private sale of 126,000 tonnes of soybeans to unknown destinations. Delivery was scheduled for 2020/21 marketing year.
The USDA attaché in India reported that country’s oilseed production is to increase by two per cent in 2020/21 to 38.4 million tonnes. In meeting the demand shortfall, India was projected to import six per cent more vegetable oils at 15.2 million tonnes.
Although good to excellent crop ratings slipped this week, the markets have also focused on the on the poor to very poor ratings in the weekly USDA crop progress reports. Such for soybeans was only at seven per cent in the latest report.
Brazil estimated its soybean exports to reach 7 million tonnes in July. That would bring the country’s exports this year to 70 million tonnes. Next year’s exports are expected to hit 80 million tonnes.
CORN futures were slightly higher on Friday getting spillover from soybeans.
Corn in the U.S. has reached its critical pollination stage. Dryness throughout much of the Corn Belt has caused concerns for the crop’s development.
U.S. corn rated eight per cent poor to very poor this week.
South Africa had its second largest corn crop on record, according to the USDA. South Africa production was at 16.1 million tonnes in 2019/20. However, projections put the 2020/21 crop at 12.6 million tonnes due to lower prices.
WHEAT futures were steady to lower on Friday, with Kansas City unchanged, Chicago down a half cent and Minneapolis down two and half cents.
Rain was forecast parts of the U.S. Midwest this weekend, with the Northern Plains expected to receive up to two inches. Daytime temperatures are to be 90 to 100 Fahrenheit.
Wheat planting in Argentina was reported at 91 per cent complete. The crop rated 22 per cent good to excellent condition.
In France, the wheat harvest reached 47 per cent complete. Rains this week slowed harvest progress, but it remains well ahead of the 26 per cent finished this time last year.
