By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 3 (MarketsFarm) – Although Intercontinental Exchange (ICE) canola futures closed higher on Friday, they pulled back from much larger increases from earlier in the day.
Support came from strong upticks in the Chicago soy complex, but there were small losses in Malaysian palm oil while European rapeseed ended mixed. Good gains in global crude oil gave way to prices being steady to lower and hurting edible oil values.
The latest production report from Statistics Canada is said to have little, if any, effect on canola prices as the markets anticipated cuts to major crops. Canola production for this year was trimmed by about 200,000 tonnes to 12.6 million.
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For the week ended Nov. 28, the Canadian Grain Commission reported increases in producer deliveries of canola, as well as exports and domestic usage. However, pace of the three remained well behind those from last year.
At mid-afternoon the Canadian dollar was lower, with the loonie at 77.92 U.S. cents, compared to Thursday’s close of 78.03.
There were 17,832 contracts traded on Friday, which compares with Thursday when 18,282 contracts changed hands. Spreading accounted for 10,824 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 1,026.90 up 4.30
Mar 994.60 up 9.50
May 953.40 up 11.90
Jul 904.60 up 13.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Friday, due to recent increases in demand.
The United States Department of Agriculture announced a private sale for 122,000 tonnes of soybeans to unknown destinations. Delivery is to be during the current marketing year.
The USDA is scheduled to release its next monthly supply and demand report on Dec. 9 at 11 am Central. The trade has suggested soybean ending stocks will increase due to less exports to China.
That said, estimates put China’s soybean imports at 102 million tonnes for this year, with 29 per cent from the U.S. That’s down from 36 per cent a year ago. Next year China is projected to import 103 million tonnes.
The Buenos Aires Grain Exchange (BAGE) said the condition of Argentina’s soybean crop rated 88 per cent good to excellent.
Nearly all of Brazil is forecast to get rain over the next two weeks, but Rio Grande do Sul is expected to miss most of it. About 40 per cent of the country’s soybean crop is currently in dry conditions.
CORN futures were higher on Friday, getting support from soybeans while fending off pressure from wheat.
Reports stated the U.S. Environmental Protection Agency (EPA) will soon announce new blending requirements for biofuels.
The BAGE cut 2.7 per cent of its call on planted corn acres in Argentina, now forecast to be 18.04 million acres. The seeding of this year’s crop was reported to be 31 per cent complete.
Ukraine said its 2021/22 corn crop could reach 40 million tonnes.
WHEAT futures were weaker on Friday in a market correction.
France reported its winter wheat planting was virtually complete as of Nov. 29, and the crop’s condition was 99 per cent good to excellent.
Russia set its export tax on wheat to be the equivalent of US$84.90 per tonne, starting next week.
Statistics Canada trimmed its estimate on all wheat production in the country from almost 21.72 million tonnes in September, to about 21.65 million tonnes in its report released today. However durum production took a harder hit, at 2.65 million from the previous estimate of 3.55 million.
