By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 30 (CNS Canada) – ICE Futures Canada canola contracts were up sharply on Friday, as a rally in the Chicago Board of Trade soy complex provided support.
The USDA released updated acreage and stocks data on Friday that provided the catalyst for the advances in soybeans that spilled into canola.
US soybean acreage was up on the year, at 89.5 million acres, but at the low end of trade guesses. Quarterly stocks also failed to live up to expectations in the US, despite being well ahead of the year ago level.
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Ideas that Thursday’s record large canola acreage number from Statistics Canada was overstated also provided some support for canola, according to traders, especially as attention turns to yield prospects and the persistent weather concerns in parts of the Prairies.
Some stops were hit on the way up, exaggerating the move.
However, continued strength in the Canadian dollar tempered the gains in canola.
About 24,939 canola contracts traded on Friday, which compares with Thursday when 24,165 contracts changed hands. Spreading accounted for 4,964 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were up 24 to 30 cents per bushel on Friday, as USDA acreage and stocks data sparked a rally.
US soybean seedings for 2017 were estimated at 89.5 million acres by the USDA. While that would be about six million ahead of the year ago level, it still sparked a bullish reaction in the futures as market participants had expected an even larger acreage base.
US soybean stocks as of June 1, at 963 million bushels, were also bullish despite being the largest supplies in the country on that date in a decade, as the USDA number was below trade estimates.
SOYOIL futures were stronger on Friday.
SOYMEAL futures settled higher on Friday, following soybeans.
CORN futures in Chicago were up by 10 to 12 cents per bushel on Friday, finding some spillover support from the advances in wheat and soybeans.
The USDA estimated US corn acres this year at 90.9 million. That was up about a million from the last report, but below the 94 million acres seeded last year.
Quarterly corn stocks of 5.2 billion bushels were about 500,000 above last year’s level.
WHEAT futures in Chicago were up 19 to 31 cents per bushel on Friday, as weather concerns facing the spring wheat crop and a bullish USDA acreage report provided support.
The USDA pegged total wheat acres in the country at 45.6 million acres, which would be the lowest ever on record. Of that total, spring wheat was pegged at 10.9 million acres, well below the 11.6 million seeded last year.
Forecasts remain dry in the major US spring wheat growing regions of North Dakota and Montana, and actual harvested area may end up even smaller.
US wheat stocks, as of June 1st, at about 1.2 billion bushels were at the top end of trade guesses and put some pressure on values.
