By Marlo Glass, MarketFarm
WINNIPEG, Aug. 21 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Friday, reacting to comparable weakness in the Canadian dollar.
The loonie has been hovering around 76 United States cents for most of the week due to losses in the U.S. dollar index. However, today the dollar lost some ground, making canola exports more attractive.
Canola gained strength from comparable vegetable oils. Chicago soyoil was stronger, which also gave canola a boost. Nearby contracts were up by about a tenth of a cent at today’s close, after losing four tenths of a cent yesterday. European rapeseed and Malaysian palm oil were also higher on the day.
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On Friday, 26,475 contracts were traded, which compares with Thursday when 23,191 contracts changed hands. Spreading accounted for 19,842 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly weaker on Friday, despite strong export demand.
This morning, the USDA announced two private export sales, one purchase made by China and the other one made by unknown destinations. China purchased 400,000 tonnes of new crop soybeans, and 368,000 tonnes were purchased by unknown destinations.
Yesterday’s Export Sales report from the USDA showed new crop soybean bookings totalled 2.5 million tonnes last week.
CORN futures were slightly weaker on Friday.
This morning, the USDA reported a sale of 405,000 tonnes of new crop corn, purchased by China.
There are reports of dry growing conditions in key regions of the Corn Belt, which is giving some support to prices.
France’s corn crop is also suffering due to dry growing conditions, and their crop rating drop by 3 per cent to total 62 per cent good to excellent.
WHEAT futures were stronger today.
Dry growing conditions in Argentina have also weighed on global wheat supplies.
One Russian firm is increasing their expectations for the country’s 2020/21 wheat production by 300,00 tonnes, to total 81.2 million tonnes.
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