By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 23 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Friday after starting the session with losses.
Support came from gains in Chicago soyoil and Malaysian palm oil. Lower European rapeseed weighed on values.
Canola contracts have remained near or at highs not experienced for several years.
Trading in the November contract will largely end today, but doesn’t officially expire until mid-November.
At mid-afternoon, the Canadian dollar was virtually unchanged at 76.08 U.S. cents.
There were 28,463 contracts traded on Friday, which compares with Thursday when 31,226 contracts changed hands. Spreading accounted for 20,026 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Canola Nov 550.00 up 4.40
Jan 551.00 up 4.10
Mar 552.90 up 3.20
May 548.80 up 2.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Friday, due to weather conditions in the United States and elsewhere in the world.
Rain and snow will continue to slow the pace of the remaining soybean and corn harvests in North Dakota, South Dakota, Minnesota and Wisconsin.
Despite rainfall, dry conditions still persist in Argentina and Brazil, although the latter is forecast to receive more rain over the next 10 days. Wildfires in Argentina have affected approximately 2.2 million acres of land for soybeans.
CORN futures were higher on Friday, getting support from strong demand out of China.
China reported its corn imports were about 39.4 million bushels during September. To date, China has purchased 263.8 million bushels.
The U.S. Department of Agriculture reported a private sale of 100,000 tonnes of corn to unknown destinations. Delivery is scheduled for the current marketing year.
In South Africa, improved corn prices and above average rains are expected to see an 8.3 per cent increase in corn acres in 2020/21 to 6.5 million. The latest estimate of the 2019/20 corn crop was down 0.5 per cent to 604.4 million bushels.
WHEAT futures were higher on Friday, due to crop issues around the world.
The USDA attaché for Ukraine reported the country’s wheat production is likely to be eight per cent lower than the department’s current estimate of 24.97 million tonnes. Ukraine’s carry out for 2020/21 is projected to be 905,000 tonnes.
The wheat harvest in Argentina was reported at three per cent complete. The Rosario Grain Exchange cut its estimate of this year’s crop by four per cent to 16.8 million tonnes.
The weather forecast for Russia has called for more dryness at least for the next week. Longer range forecasts have indicated rain for the early part of November. Dry conditions have impacted the country’s winter cereal crops.
Futures Prices as of October 23, 2020
Prices are in Canadian dollars per metric ton