By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 1 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished slightly higher on Friday, as bids are expected to fluctuate either side of steady for the next few months, according to a trader.
He also noted that volumes were significantly lower today, as speculators finished rolling out of their November contracts yesterday.
The Prairie harvest has continued at a slow pace due to wet conditions. However, the end is nearing as across the region farmers are about 80 to 85 per cent complete. It’s likely that some canola will be left in the field over the winter, to be combined in the spring.
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The Chicago soy complex provided support. In particular soyoil, as bids increased by more than a quarter cent.
The Canadian dollar was steady by mid-afternoon Friday at 76.04 U.S. cents, after closing Thursday at 75.99.
There were 21,109 contracts traded on Friday, which compares with Thursday when 28,224 contracts changed hands. Spreading accounted for 16,360 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 458.20 up 0.80
Mar 467.60 up 0.80
May 476.70 up 1.10
May 484.20 up 1.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Friday, as the United States and China proceed with their partial trade agreement.
United States Treasury Secretary Wilbur Ross told the media on Friday that Phase One of the U.S./China trade deal remains on course. He said officials from both countries will discuss a new site to sign the pact during a teleconference today. The deal was to have been signed at the now cancelled APEC Summit in Chile that was scheduled for later this month.
The U.S. Department of Agriculture released its oilseed crush data today and the September crush came in at 162.0 million bushels, which matched average trade expectations.
The USDA announced a private sale of 132,000 tonnes of soybeans to China this morning. Delivery will be during the current marketing year.
IEG Vantage increased its estimate of U.S. soybean yields by a half bushel per acre to now 47.0 bushels per acres (BPA). IEG has projected production to reach 3.553 billion bushels. The USDA’s estimate is at 46.9 BPA.
For 2020/21, the USDA estimated 84.0 million acres of soybeans to be planted. Production is expected to be 4.2 billion bushels and ending stocks were forecast at 518 million bushels.
After dealing with a great amount of rain, farmers in Argentina were starting to ramp up their planting of soybeans, according to the Buenos Aires Grain Exchange (BAGE).
CORN futures were steady to lower on Friday despite weather concerns for the Midwest and Corn Belt.
Precipitation and cold temperatures have continued to delay the U.S. harvest. However, drier weather has been forecast for the coming week, but below average temperatures are expected to linger.
IEG raised their projection for the U.S. corn yield to 168.6 BPA, virtually on par with the USDA’s estimate. IEG forecast production to come in at 13.797 billion bushels.
In the USDA’s forecast for 2020/21, approximately 94.5 million acres are expected to be planted, with production at 15.545 billion bushels. Ending stocks are projected to be 2.754 billion bushels.
The BAGE reported that Argentina’s corn planting reached 40 per cent complete this week and was 4.5 points ahead of this time last year.
WHEAT futures were higher on Friday, on expectations of fewer U.S. acres to be planted next year.
The USDA called for wheat acres to decline slightly, from 45.2 million this year to 45.0 million in 2020/21. Ending stocks are forecast to be 925 million bushels.
FranceAgriMer estimated that the planting of France’s soft wheat was 54 per cent complete as of Oct. 28.
Ukraine wheat exports jumped 39 per cent during 2019/20 at 10.92 million tonnes compared to this time last year.
Dry conditions earlier this year has resulted in Argentina’s wheat production declining by 1 million tonnes. With 3.5 per cent of the harvest completed so far, the BAGE has now projected 18.8 million tonnes.
