By Glen Hallick, MarketsFarm
WINNIPEG, June 7 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker on Friday, due to what a Winnipeg-based trader deemed to be “regular activity” along with lower soybean prices on the Chicago Board of Trade.
The dry conditions across most of Western Canada have meant canola is getting a weather premium. Rain was forecast this weekend for the Prairies, with the northern regions likely receiving more precipitation than in the south.
There have been reports that trade talks between Canada and China have begun. Also, Canadian Prime Minister Justin Trudeau wants to meet with Chinese President Xi Jinping at the G20 Summit in Japan this month.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
Also regarding Canada and China, Canadian wheat sales to China hit a 14-year high. Despite tensions between the two, Canada sold about 1.36 million tonnes of wheat to China. That figure was also double from last year’s sales.
There were 15,392 contracts traded on Friday, which compares with Thursday when 22,111 contracts changed hands. Spreading accounted for 11,094 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 453.00 dn 1.70
Nov 464.70 dn 2.40
Jan 470.40 dn 2.80
Mar 475.60 dn 3.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Friday, with contracts down by about 12 cents per bushel. Soyoil lost more than a third of a cent per pound and soymeal dropped US$3.60 per hundredweight.
The markets in the United States predicted soybean planting in the country could be 55 to 59 per cent by June 9. The U.S. Department of Agriculture issues its weekly crop progress report on June 10.
The U.S. and China were back talking trade. Chinese President Xi Jinping called U.S. President Donald Trump a “friend” and said a trade deal between the two countries is possible.
Also, shipments of U.S. soybeans resumed this week. China had 7 million tonnes of soybeans in the country, but that dropped to approximately 6.22 million tonnes this week. Transportation problems in the U.S., due to high water levels, made shipments difficult.
The Buenos Aires Grain Exchange (BAGE) reported Argentina’s soybean harvest was 96 per cent complete, slightly ahead of the pace this time last year.
CORN futures were weaker on Friday, by four to five cents per bushel due to speculation regarding planting progress.
Market projections for corn planting were 80 to 82 per cent complete.
Based on a survey of 1,000 U.S. farmers, Farm Journal reported 20 per cent of farmers would Prevent Plant half of their corn acres.
In light of President Trump’s threat to impose a five per cent tariff on Mexican imports, reports stated Mexico will exclude corn from any retaliatory measures. In 2017/18, Mexico purchased more than 15.5 million tonnes of U.S. corn.
The BAGE said Argentina’s corn harvest was more than 39 per cent complete, which was somewhat behind the five-year average of nearly 43 per cent.
Reports stated Zimbabwe will issue a tender for 750,000 tonnes of corn. No dates for delivery have been scheduled.
WHEAT futures were mixed on Friday, with gains of three cents per bushel in Minneapolis, with losses of four to six cents in Chicago and Kansas City. Bids were influenced by trade data and recent drier weather.
Dry conditions in Australia, Canada, Russia, and in other regions of the world have been providing support for wheat bids, as have wet conditions in the U.S.
The BAGE reported Argentina’s wheat planting was almost 20 per cent complete, ahead of the five-year average of nearly 16 per cent.
FranceAgriMer reported France’s soft wheat crop to be 80 per cent good to excellent condition, one point more than this time last year.
