By Glen Hallick, MarketsFarm
WINNIPEG, July 26 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Friday, as the Canadian dollar retreated and there was gain of a fifth of a cent in Chicago soyoil.
The loonie at mid-afternoon was at 75.89 U.S. cents, which provided support for canola.
While the markets are reluctant to issue any crop estimates, general expectations are for comfortable supplies of canola. However, that will hurt canola’s upside, said a trader.
There were 10,785 contracts traded on Friday, which compares with Thursday when 11,044 contracts changed hands. Spreading accounted for 5,786 contracts traded.
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Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 450.50 up 1.60
Jan 458.10 up 1.90
Mar 465.30 up 1.90
May 470.60 up 1.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly higher on Friday, ahead of United States/China trade talks resuming on Monday.
The U.S. Department of Agriculture (USDA) announced its US$16 billion dollar Market Facilitation Program (MFP) on Thursday. Under the MFP, per acre payments will be from US$15 to US$150, depending on how much a given crop was grown in a specific county. Most payments to farmers were estimated to be US$50 to US$70 per acre, according to reports. The American Farm Bureau and the American Soybean Association expressed their support for the program on Friday.
European rapeseed production is expected to drop nearly four per cent to 18.0 million tonnes this year for the continent’s smallest crop in nine years.
Malaysian palm oil continued to increase in value this week, with its best gains in two months, as monsoons have provided below average amounts of precipitation.
China’s General Administration of Customs stated the country will import soybeans from Russia.
Also, China’s pork production was projected to drop to 48.0 million tonnes in 2019, from 54.04 million in 2018. For 2020 production was forecast to fall to 44.2 million tonnes. While China’s hog population decreases because of African swine fever, the country’s expected pork imports will jump by as much as 60 per cent.
CORN futures were lower on Friday, due to weakening demand.
The forecast for extreme heat across the U.S Corn Belt has changed to cooler than normal temperatures. However, soil conditions in the belt were abnormally dry.
An auction of China’s state corn reserves sold more than 681,000 tonnes, which was approximately 17 per cent of the amount offered.
The condition of the French corn crop was downgraded by eight points this week to 67 per cent good to excellent.
WHEAT futures were steady to lower on Friday, with small gains in Minneapolis, while Chicago and Kansas City incurred losses.
The Wheat Quality Council wrapped up its three-day tour of North Dakota and Minnesota on Thursday, studying more than 350 fields. Tour participants estimated an average wheat crop of approximately 43.1 bushels per acre (BPA) this year, up two bushels from last year’s tour, but under the five-year average of 44.7. The tour pegged durum yields at 32.0 BPA, down eight from 2018 and 7.3 compared to the five-average.
The European Union predicted its wheat crop will be 141.3 million tonnes for the 2019/20 crop year, down seven per cent from the previous year. The EU projected its wheat stocks to fall by 2.8 per cent to 13.7 million tonnes, and exports were expected to increase to 25.5 million tonnes.
France’s soft wheat crop was reported as 63 per cent harvested for a gain of 30 points from last week, but behind last year’s pace of 88 per cent, according to FranceAgriMer.
China’s General Administration of Customs has granted wheat imports from Russia, specifically from the country’s Kurgan region.
