By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 27 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished weaker on Friday, as a stronger Canadian dollar weighed on values.
After not being traded on Christmas and Boxing Day, the loonie, by mid-afternoon Friday, was higher at 76.48 U.S. cents compared to Tuesday’s close of 76.01.
A trader said canola should have been at least C$4.50 higher per tonne, as it continues to lag behind other vegetable oils. He also said crush margins of C$212 per tonne are somewhat “obscene.”
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Meanwhile, MarketsFarm senior analyst Mike Jubinville said the issue of canola lagging behind is likely due to Canada being unable to move it fast enough to customers, and tense Canada/China relations.
There were 22,165 contracts traded on Friday, which compares with Tuesday when 13,801 contracts changed hands. Spreading accounted for 14,910 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 463.80 dn 4.90
Mar 474.20 dn 3.80
May 483.40 dn 3.80
Jul 489.60 dn 4.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Friday, largely due to profit-taking.
The United States Department of Agriculture (USDA) issued its weekly export sales report on Friday, with total soybeans sales at 747,300 tonnes for the week ended Dec. 19. That was slightly above the low end of market expectations of 700,000 tonnes. Soymeal sales came in at 138,000 tonnes, which surpassed the end of trade guesses of 100,000 tonnes. At 37,400 tonnes, soyoil exceeded market expectations of 30,000 tonnes.
Optimism towards the U.S./China trade deal has continued. Although a firm date and location for the signing of the Phase One agreement have yet to be decided on, trade officials from both countries have kept in near constant contact.
The Buenos Aires Grain Exchange (BAGE) reported that about 79 per cent of Argentina’s soybean crop has been planted.
CORN futures were steady on Friday, lacking direction to go either way.
The Energy Information Administration (EIA) reported daily production for the week ended Dec. 20 reached 1.08 million barrels on an increase of 19,000 barrels.
The USDA reported corn export sales were at 626,200 tonnes and within market expectations.
The U.S. Northern Plains were forecast to receive up to one foot of snow, which will force another stoppage to the ongoing harvest in the region.
The BAGE estimated that approximately 75 per cent of Argentina’s corn crop has been planted. However, dry conditions could reduce production. Already one estimate came in at 47.5 million tonnes, well under the 50.0 million tonnes initially expected.
A private firm pegged Brazil’s corn crop at 102 million tonnes.
WHEAT futures were higher on Friday on the strength of export sales.
The USDA reported sales topped 756,000 tonnes for the best week of the 2019/20 marketing year.
Drought conditions in Russia and Ukraine supported CBOT prices.
