By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were mostly lower on the final day of trading for 2023, with only the nearby January contract being higher.
As well, today is first notice day for all January futures.
Canola pulled back due to a lack of support from most comparable oils. While Chicago soyoil edged up a little, there were declines in European rapeseed and most Malaysian palm oil contracts. Additional pressure came from losses in Chicago soybeans and soymeal.
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Slight upticks in global crude oil prices have turned into small losses, which put pressure on the vegetable oils.
Over the last several days, canola crush margins have receded from more than C$200 above the futures to less than $165 in the nearby positions.
The Canadian dollar was lower at mid-afternoon Friday with the loonie at 75.51 U.S. cents compared to Thursday’s close of 75.69.
There were 21,084 contracts traded on Friday, which compares with Thursday when 26,598 contracts changed hands. Spreading accounted for 11,776 contracts traded.
Markets in Canada and the United States will be closed on Monday to mark New Year’s. Trading is scheduled to resume Tuesday morning.
Prices are in Canadian dollars per metric tonne:
Price Change
Canola Mar 653.40 dn 6.70
May 661.10 dn 6.30
Jul 666.80 dn 6.70
Nov 663.70 dn 7.50
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, but there were small gains in soyoil.
The United States Department of Agriculture issued its weekly export sales report, after being delayed one day due to Christmas. For the week ended Dec. 21, soybean export sales tallied 983,900 of old crop soybeans, which was near the low end of market expectations. Those for soymeal came to 268,500 tonnes of old crop plus 900 tonnes of soyoil, and both were within trade guesses.
CBOT soybeans lost about 14 per cent of their value during the calendar year, according to a Reuters report.
Much-needed rains for the dry areas of Brazil have been forecast for the weekend.
Farmers in Argentina are reported to be organizing their opposition to the new government’s plan to hike export taxes.
Meanwhile, the Buenos Aires Grain Exchange said soybean planting in Argentina reached 79 per cent finished. The exchange projected the total area to be planted at 42.75 million acres.
Today is first notice day for January contracts.
CORN futures were lower on Friday, pulled back pressure from soybeans and crude oil.
The USDA corn export sales amounted to 1.24 million tonnes of old crop, which slightly exceeded market projections. There were also 11,200 tonnes of new crop sold abroad.
Light amounts of snow and rain have been forecast for the eastern half of the U.S. Corn Belt during the New Year long weekend. For the first week of January, the outlook for the Midwest has called for warmer than normal temperatures, but below normal precipitation.
Reuters said CBOT corn prices fell about 30 per cent during 2023.
The BAGE estimated corn planting in Argentina was about 70 per cent done. The total corn area is to be 17.54 million acres.
WHEAT futures were lower on Friday, unable to hold on to earlier gains.
U.S. wheat export sales were 276,400 tonnes of old crop and at the low end of trade expectations. New crop wheat came in at 41,600 tonnes.
Reports said the U.S. wheat complex gave up approximately 20 per cent of its value in 2023, while European wheat lost 28 per cent.
Russia launched one of its biggest missile and drone attacks of the nearly two-year-old war, targeting Ukraine’s capital of Kyiv along with several other cities, killing 18 people.
Cereal production in Turkey was up 9.1 per cent in 2023, with the country harvesting 42.2 million tonnes in total. Of that 22 million tonnes was wheat, 9.2 million was barley along with 410,000 tonnes of oats.
The BAGE pegged the wheat harvest in Argentina at 71 per cent finished, with the total amount to be gleaned at 14.7 million tonnes.
