By Glen Hallick, MarketsFarm
WINNIPEG, May 8 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were slightly higher on Friday, due to gains in the Chicago soy complex.
However, a stronger Canadian dollar tempered those gains in canola. The loonie was higher at 71.77 U.S. cents at mid-afternoon, compared to Thursday’s close of 71.35.
Seeding progress has been slow in Saskatchewan and Manitoba this spring. In the first Saskatchewan weekly crop report of 2020, farmers were at about seven per cent complete, about half of where they were this time last year. The first Manitoba crop report of the year said farmers in that province had yet to reach one per cent finished. Wet fields have been unable to dry out due to below average temperatures.
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Alberta issued its first report of the year, showing farmers had planted 9.4 percent of their crops. That’s down from the 16.4 per cent complete this time last year.
The Canadian Grain Commission reported farmer deliveries of canola for the week ending May 3 were up 18.7 per cent at 398,000 tonnes. Domestic usage rose 2.7 per cent from the previous week at 398,000 tonnes. Canola exports fell 39.0 per cent on the week at 173,000 tonnes.
There were 18,387 contracts traded on Friday, which compares with Thursday when 15,011 contracts changed hands. Spreading accounted for 11,604 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 468.60 up 1.40
Nov 474.90 up 0.90
Jan 480.70 up 0.80
Mar 486.80 up 0.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Friday, due to the weather conditions.
Cold temperatures have been forecast for the United States Midwest over the weekend, with the likelihood of frost in various parts of Michigan, Indiana, Ohio, Kentucky, Wisconsin and Minnesota.
The U.S. and China resumed trade talks on Friday by conference call. Progress was reportedly made as the two countries move on from their Phase One trade agreement signed in January.
The USDA announced a private sale of 120,000 tonnes of soybeans to unknown destinations, with delivery during the current marketing year.
Ahead of the United States Department of Agriculture monthly supply and demand report on Tuesday, May 12, market expectations are for the new crop soybean carryover to be around 432.0 million bushels. The old crop carryover was projected to be 495.4 billion bushels.
Brazil soybean exports to China in April fell by 6.7 million tonnes due to inclement weather.
CORN futures were higher on Friday, on spillover from soybeans.
Trade predictions have called for the new crop corn ending stocks to be around 3.4 billion bushels. The old crop carryover was forecast to be approximately 2.3 billion bushels.
The Buenos Aires Grain Exchange reported the corn harvest in Argentina to be 38 per cent complete. That’s about the same point as this time last year and seven points ahead of the five-year average.
Corn planting in Ukraine has reached 11.37 million acres.
WHEAT futures were mixed on Friday, with gains for Minneapolis and Kansas City, but a half-cent loss for Chicago.
Accumulated U.S. wheat exports in 2019/20 have reached 824.0 million bushels, according to the USDA.
The markets believe new crop wheat ending stocks will be 824 million bushels and the old crop carryover will be almost 974 million bushels. Wheat production in 2020/21 was forecast to be around 1.8 billion bushels, with winter wheat accounting for about 65 per cent.
Europe and the Black Sea region were receiving rain on Friday, alleviating some of their dry conditions.
