By Glen Hallick, MarketsFarm
WINNIPEG, April 17 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Friday as gains the in the Canadian dollar weighed on values. The losses were tempered by support from traders rolling out of the May contract.
The loonie was at 71.24 U.S. cents at mid-afternoon, compared to Thursday’s close of 70.81.
The mixed tone of the Chicago soy complex provided little direction for canola. Gains in European rapeseed were countered by losses in Malaysian palm oil.
The Canadian Grain Commission (CGC) reported farmers deliveries came to 398,000 tonnes for the week ended April 12. That was an 18.6 per cent increase from the previous week. Domestic usage was almost 217,000 tonnes and up 28.7 per cent. The CGC said exports of more than 262,000 tonnes were down four per cent.
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There were 13,559 contracts traded on Friday, which compares with Thursday when 23,750 contracts changed hands. Spreading accounted for 9,606 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 456.20 dn 1.50
Jul 463.60 dn 1.20
Nov 471.70 dn 1.60
Jan 478.00 dn 1.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Friday, after lacking direction for most of the session.
The United States Department of Agriculture (USDA) announced on private sale of 120,000 tonnes of soybeans to unknown destinations. Delivery was scheduled for the current marketing year.
The USDA said soybean exports were at 68 per cent of yearly projections at this time, compared to 62 per cent a year ago. A report suggested 2019/20 export projections have been too low.
In a bid to prop up the sagging U.S. oil industry, the Governors of Texas, Oklahoma, Utah, Louisiana and Wyoming requested President Donald Trump exempt their refineries from biofuel requirements.
The Buenos Aires Grain Exchange (BAGE) estimated the Argentina soybean harvest was almost 38 per cent complete. The BAGE maintained their production forecast at 49.5 million tonnes.
For a sixth consecutive quarter, pork production in China has decreased, according the National Bureau of Statistics. The continuing effects of African swine fever saw production fall 29 per cent in the first quarter of 2020. Output in 2019 tumbled to a 16-year low of 42.6 million tonnes. Depending of official versus unofficial sources, China’s hog herd dropped 40 to 60 per cent since August 2018, when the disease was initially found in pigs.
CORN futures were slightly higher on Friday, benefitting from news that U.S. lockdown restrictions could begin to be lifted in the coming weeks.
The USDA said corn exports were presently at 48 per cent of the yearly projection. This time last year, exports were at 55 per cent. A report theorized current U.S. corn export estimates are too high.
The BAGE reported the Argentina corn harvest was close to 33 per cent complete. The exchange kept its production estimate at 50 million tonnes.
Argentina and Brazil began discussions to release large quantities of water from the Itapúa Dam as a means to raise the level of the Parana River. Cargo vessels are having a difficult time navigating the river and were leaving port with reduced loads.
WHEAT futures were steady to higher on Friday, with support coming from a somewhat weaker tone in the U.S. dollar.
There was decline of 0.2 per cent in the U.S. greenback on the ICE Dollar Index, which made wheat exports more attractive.
Japan purchased almost 133,360 tonnes of wheat with the tender split between the U.S., Canada and Australia.
Confronted with labour shortages, India’s wheat harvest this year was said to be off to a slow start. Faced with the COVID-19 pandemic, the national government’s lockdown measures have made it difficult for harvest workers to travel to farms. Although more combines were being used, there has been less straw available for livestock feed.
