By Glen Hallick, MarketsFarm
WINNIPEG, June 19 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Friday, with increases for the new crop year stronger than the nearby July contract.
Canola benefitted from gains in Chicago soyoil, Malaysian palm oil and European rapeseed.
Also, a trader suggested there could be rolling out of the November at this time along with the July contract, as both providing support.
In the Alberta weekly crop report, the overall rating of crops province-wide was at 80.6 per cent good to excellent, with canola at 76.6 per cent. However, wet conditions in northwest Alberta resulted in a canola rating of only 36.6 per cent good to excellent.
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By Glen Hallick Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures were on the rise late Tuesday morning,…
The Canadian Grain Commission reported producer deliveries of 446,000 tonnes for the week ended June 14. Domestic usage came in at 186,500 tonnes and exports registered only 80,300 tonnes.
By mid-afternoon, the Canadian dollar was slightly lower at 73.49 U.S. cents, compared to Thursday’s close of 73.59.
There were 29,074 contracts traded on Friday, which compares with Thursday when 20,224 contracts changed hands. Spreading accounted for 17,284 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 473.90 up 1.60
Nov 478.10 up 2.20
Jan 484.10 up 2.50
Mar 489.60 up 2.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Friday, benefitting from fresh trade news.
China has agreed to increase its purchases of agricultural products from the United States. The move comes after talks between senior officials from both countries in Hawaii this week. Under the terms of the Phase One trade agreement, China was to import US$40 billion of U.S. farm goods this year, but has only imported a small fraction so far.
The Buenos Aires Grain Exchange (BAGE) reported the Argentina soybean harvest was completed and production came in at 49.8 million tonnes, just short of the 50.0 million that had been forecast.
CORN futures were slightly higher on Friday, due to spillover from soybeans.
Rain is forecast for several of the growing areas in the U.S. this weekend, including the Central Plains. Crops have been suffering from stress caused by warm and dry conditions.
The U.S. Environmental Protection Agency (EPA) received more than 50 petitions from small refineries requesting a retroactive exemption from the Renewable Fuel Standards from 2011 to 2018. The petitions are part of an attempt to bypass the standards during extended periods of lower demand, according to a report.
Agroconsult raised its forecast for the second corn crop in Brazil by 1.7 per cent to 72.9 million tonnes. Yields are almost 84 bushels per acre, down by about two bushels from last year.
WHEAT futures were steady to lower on Friday as the winter wheat harvest continues in the U.S.
A report stated the winter wheat harvest in Kansas has been moving quickly, with swathing and combining ongoing in the southern third of the state.
The U.S. Northern Plains could miss this weekend’s rain, causing further stress to spring wheat crops in the Dakotas and Minnesota.
The BAGE estimated Argentina is set to plant about 16.6 million acres of wheat in 2020, with progress at 58 per cent complete. The BAGE’s area forecast is 4.5 per cent less than the estimate from the Rosario Grain Exchange.
