A Halloween hike in Chicago
By Glen Hallick, MarketsFarm
Glacier FarmMedia MarketsFarm – Canola futures on the Intercontinental Exchange turned weaker on Friday, following losses in other vegetable oils to the downside.
There were sharp declines in Chicago soyoil along with more moderate losses in MATIF rapeseed and Malaysian palm oil. Gains in Chicago soybeans and soymeal helped to temper the pullback. Crude oil was relatively steady, offering little guidance to the veg oils.
The January canola contract dipped below its 50-day moving average but remained well above its 20-day average.
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Little headway was made in a meeting between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping. The two leaders only agreed to work towards resolving Canada-China trade differences.
The Canadian Grain Commission reported the country’s canola exports remained sluggish compared to a year ago, with cumulative shipments at 1.23 million tonnes versus 2.90 million this time last year. While domestic use fell to about 167,000 tonnes, the year-to-date was relatively steady at 2.73 million tonnes.
The Canadian dollar was lower on Friday afternoon with the loonie at 71.35 U.S. cents compared to Thursday’s close of 71.49.
There were 48,650 contracts traded on Friday, compared to 51,504 on Thursday. Spreading accounted for 28,422 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change
Canola Jan 637.00 dn 11.50
Mar 648.00 dn 11.80
May 657.90 dn 11.80
Jul 665.00 dn 11.90
SOYBEAN futures at the Chicago Board of Trade were higher on Friday, as was soymeal build gains but soyoil continued downward.
The United States Energy Information Administration reported 1.04 billion pounds of soyoil were used for biodiesel production in August, down 14.5 per cent from the previous August. At 39.2 per cent, soyoil reached its highest inclusion of biodiesel feedstock.
Friday marks first notice day for November futures.
Aprosoja, the Brazil soybean producers association, downplayed the new trade agreement between the United States and China, calling the deal “seasonal movement” and it could lead to higher prices at CBOT which would pull up prices in Brazil.
The Brazil government will permit the blasting of a 35-kilometre channel along the Araguaia-Tocantins riverway to increase barge movement of soybeans and corn.
CORN futures bumped up on Friday, with spillover from soybeans and wheat.
Ukrainian October corn exports tumbled to 800,000 tonnes from 1.73 million a year ago, while total grain exports of 2.50 million tonnes are down from 3.70 million.
France reported its corn harvest was 82 per cent complete as of Oct. 27, progressing seven points on the week.
WHEAT futures were higher on Friday, recovering all or most of yesterday’s losses.
The U.S. weather outlook called for scattered showers for several regions, with the Central and Southern Plains to be the driest.
The European Union upped its wheat production by 800,000 tonnes at 133.40 million while carryover stocks held at 10.80 million.
The planting of French winter wheat reached two-thirds complete, advancing 11 points on the week.
South Korea purchased 40,300 tonnes of Canadian wheat.
