North American Grain/Oilseed Review: Canola bids up ahead of long weekend

By Glen Hallick, MarketsFarm

WINNIPEG, Aug. 2 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Friday, as prices bounced from Thursday’s sharp losses.

Also, with the long weekend, traders pushed up bids today as the next session won’t start until Monday night, said a Winnipeg-based trader.

He also noted the 2019 canola crop will still be a large one, despite the latest estimates being lower than the 2018 crop of 20.3 million tonnes. In turn, it will be difficult to move canola without the Chinese market.

The FarmLink crop tour pegged this year’s production at approximately 19.0 million tonnes on increased yields.

Last week, MarketsFarm estimated the 2019 crop at 17.85 million tonnes, having taken into account the slow start this spring and the looming threat frost will soon pose to crops.

Agriculture Canada and Agri-Food Canada, in its July report, pegged this year’s crop at 18.58 million tonnes.

There were 13,094 contracts traded on Friday, which compares with Thursday when 12,227 contracts changed hands. Spreading accounted for 6,408 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Nov 444.80 up 2.80
Jan 453.10 up 3.30
Mar 460.30 up 3.60
May 466.60 up 3.70

SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Friday, as the markets bounced back from yesterday’s sharp losses.

A report from Census stated U.S. soybean exports in June were 3.19 million tonnes, a record for the month and up 2.25 per cent from May. About 1.73 million tonnes were destined for China.

The United States Department of Agriculture (USDA) said 4.29 million tonnes of soybeans were crushed in June, according to its fats and oils report.

Brazil’s soybean exports for July were 7.82 million tonnes, according to a report. However, exports to China were down 23 per cent due to of African swine fever reducing China’s hog population.

CORN futures were stronger on Friday, following soybeans.

The Census report stated U.S. corn exports in June were 3.07 million tonnes, the lowest amount for June in six years. Also, it was a drop of about 24.60 per cent from May and about 57.30 per cent from June 2018. As well, DDG shipments were short of 962,600 tonnes and ethanol exports were 128.42 million gallons.

FCStone estimated the 2019 U.S. corn crop at 355.36 million tonnes.

The USDA reported yesterday almost 11.60 million tonnes of corn were used for ethanol production in June.

Corn exports from Brazil in July were the largest since December 2015, at about 6.32 million tonnes, according to the country’s trade ministry.

WHEAT futures were higher on Friday, benefitting from the day’s upswing.

However, a report stated U.S. wheat prices are among the world’s highest, and there’s an ample global supply of wheat.

Census reported U.S. wheat exports in June were about 2.16 million tonnes, for a drop of 21.85 per cent from May, but a 38.26 per cent increase from June 2018.

FranceAgriMer reported the French wheat crop was 87 per cent harvest, back of the average of 99 per cent.

---

Newsletter Sign Up - Stories about strategic business thinking and farming success

You'll receive profiles, case studies and strategy from modern farming in Canada, delivered to your inbox 6 days a week!

Your Email(Required)

Your Postal Code(Required)

Consent

I consent to receiving emails from Glacier FarmMedia, its affiliates and divisions and third parties, containing agriculture news, updates and promotions. I can unsubscribe at any time

Name

This field is for validation purposes and should be left unchanged.