By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 2 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were steady to lower on Friday, in choppy trading.
News that the United States President and First Lady were diagnosed with COVID-19 initially rocked the markets, but steadiness worked its way back by session’s end.
One exception being a steep loss in Chicago soyoil that weighed on canola values.
The Canadian Grain Commission reported producer deliveries of canola were 676,100 tonnes for the week ended Sept. 27. Canola exports were 291,100 tonnes and domestic usage was 200,100 tonnes.
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The Alberta weekly crop report said the province wide harvest of major crops reached 68 per cent complete as of Sept. 29. The canola harvest hit 53 per cent finished.
At mid-afternoon, the Canadian dollar was slightly lower at 75.14 U.S. cents, compared to Thursday’s close of 75.23.
There were 23,524 contracts traded on Friday, which compares with Thursday when 23,090 contracts changed hands. Spreading accounted for 16,952 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 517.10 dn 0.20
Jan 523.80 dn 0.90
Mar 530.10 dn 1.40
May 533.90 dn 0.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Friday, due to news regarding the president and first lady.
The report of United States President Donald Trump and First Lady Melania Trump having COVID-19 threw the markets into flux. There were declines in several sectors, such as soybeans and crude oil. Others, such as wheat had mixed outcomes.
The U.S. Department of Agriculture (USDA) reported two private sales of soybeans. One for 264,000 tonnes to China and the other for 252,000 tonnes to unknown destinations. Delivery for both is during the current marketing year.
The USDA reported the August soybean crush consumed about 175 million bushels. That’s 10 million bushels less than the July crush and 3 million fewer compared to August 2019.
The next supply and demand report from the USDA is scheduled for Oct. 9. One private firm has projected a half bushel per acre decline in soybean yields to 52.4 bu/ac.
Brazil said its September soybean shipments came in at 4.47 million tonnes for a decline of 2.8 per cent compared shipments in September 2019.
Argentina export tax on soybeans and soymeal will be trimmed from 33 to 30 per cent until the end of 2020.
CORN futures were down on Friday, caught up in spillover from soybeans.
Ethanol production in the U.S. used slightly more than 411 million bushels of corn in August. That’s 13 million bushels less than the corn used in July and a drop of 43.5 million when compared to a year ago.
A private firm predicted U.S. corn yields will decline by 0.6 bu/ac., to 179 bu/ac., in the coming S&D report.
Brazil report its corn exports were 6.6 million tonnes in September, which is 2.5 per cent more than in September 2019.
The Buenos Aires Grain Exchange (BAGE) reported corn planting in Argentina reached 15 per cent complete, which is six points less than this time last year. Corn conditions came in at 43 per cent good to excellent, down five points from the previous week.
WHEAT futures were mixed on Friday, with gains for Chicago and Kansas City Wheat and a loss for Minneapolis.
The BAGE reported the Argentina wheat crop is only at eight per cent good to excellent condition, dropping one point from the previous week. The crop rated 46 per cent poor to very poor, due to dry conditions. This time last year the crop was 42 per cent good to excellent.
Australia wheat exports are expected to increase over the coming months, due to a sharp rise in production and Black Sea region prices being higher. Analysts predict exports of about 18 million tonnes this marketing year.
Ukraine said wheat prices leapt 40 per cent during 2020, with a 25 per cent increase in September alone. Poor weather has adversely affected all Ukrainian crops this year.
