By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 3 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished lower on Friday as spillover support from Chicago soyoil evaporated throughout the session.
The markets in the United States and Canada will remain closed on Monday for Labour Day. Trading resumes that evening with the overnight session.
Some support came from gains in Malaysian palm oil, but declines in European rapeseed weighed on values.
More pressure came from a stronger Canadian dollar. The loonie was at 79.90 U.S. cents, compared to Thursday’s close of 79.54.
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There were overnight frosts in some parts of the Prairies, but at this point crops should receive little if any damage.
The Alberta crop report said the province-wide harvest of all major crops reached 26 per cent complete as of Aug. 31. That’s far ahead of last year’s pace of 10 per cent and the five-year average of 11. Canola in the province was 3.7 per cent harvested.
The Canadian Grain Commission reported producer deliveries of canola were up 5.7 per cent for the week ending Aug. 26 at nearly 113,000 tonnes. Canola exports vaulted 242 per cent on the week at just over 21,000 tonnes, while domestic usage dropped back 18 per cent at about 113,000 tonnes.
There were 14,477 contracts traded on Friday, which compares with Thursday when 14,586 contracts changed hands. Spreading accounted for 8,810 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 886.20 dn 6.30
Jan 868.90 dn 6.70
Mar 849.10 dn 7.10
May 829.60 dn 6.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Friday, due to increased demand.
The United States Department of Agriculture reported a private sale of 130,000 tonnes of soybeans to China. Delivery is to be during the current marketing year, which began Sept. 1.
In Egypt’s weekly tender, it purchased 10,000 tonnes of soyoil and 19,000 tonnes of sunflower oil.
The USDA will release its monthly supply and demand estimates on Sept. 10. Ahead of the report, StoneX pegged U.S. soybeans 50.8 bushels per acre, up from its previous call of 46.7. The USDA’s August estimate was 50.0 bu/ac.
Approximately 28 per cent of U.S. soybean crops are in drought, which is down from 32 per cent, according to the USDA.
Vessel traffic on the Mississippi River remained delayed and loading facilities were still under repair due to damage caused by Hurricane Ida. Complicating matters has been to the struggle to get the power grid back online in Louisiana and other states.
Faced with dry conditions, farmers in Brazil may start their soybean planting sooner than expected, according to Reuters. However, another report stated the planting will be delayed for the same reason. The long range weather outlook is calling for rains by the end of September.
Ukraine reported its rapeseed harvest came to 2.79 million tonnes, with its sunflower harvest to begin.
CORN futures were slightly lower on Friday, with expectations of an increase in yield projections next week.
StoneX bumped up its projections on U.S. corn production from 176.9 bu/ac. to 177.5. That compares to the USDA’s call of 174.6 bu/ac. Also, the consultancy trimmed its estimate of the second corn crop in Brazil by 0.84 per cent at 59.1 million tonnes.
France said its corn condition rated 91 per cent good to excellent.
Ukraine reported that its corn harvest was now underway, with early indications of yields were just over 89 bu/ac.
WHEAT futures were stronger on Friday, including double-digit gains for Kansas City and Minneapolis.
IHS Markit projected the U.S. spring wheat crop at 6.5 million tonnes, compared to the USDA’s August call of 7.24 million tonnes.
France reported that its wheat harvest was 99 per cent complete, but less than half is expected to meet milling standards.
Ukraine said its wheat harvest amounted to 32.8 million tonnes, along with 10 million tonnes of barley.
The wheat crop in Argentina was reported to be 59 per cent good to excellent, up 11 points from the previous week due to timely rain.
