By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 27 (MarketsFarm) – The ICE Futures canola market was weaker on Friday, as traders squared positions ahead of the weekend and a key Statistics Canada production report on Monday.
The government agency will release its first production estimates for the 2021/22 crop on Monday morning, Aug. 30. Traders generally expect to see a decline in canola production compared to the 18.7 million tonnes grown in 2020 after a devastating drought during the 2021 growing season, but the extent of the reduction remains to be seen with estimates ranging from 11.5 million to 16 million tonnes.
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Losses in Chicago Board of Trade soybeans and strength in the Canadian dollar put some pressure on canola. However, soyoil was higher on the day.
About 26,423 canola contracts traded on Friday, which compares with Thursday when 14,898 contracts changed hands. Spreading accounted for 17,162 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were mostly weaker on Friday, with month-end positioning and improving production prospects weighing on values.
Recent Midwestern rainfall and forecasts calling for relatively beneficial growing conditions over the next week weighed on soybeans for the second straight session on Friday.
However, solid export demand on the other side provided support. The United States Department of Agriculture announced private export sales of 129,000 tonnes of soybeans to China this morning
CORN held onto small gains, finding some support despite the declines in soybeans.
The USDA also announced a 150,000 tonne sale of U.S. corn to Colombia this morning.
The improving Midwestern moisture prospects kept a lid on the upside, although the moisture at this time of year may be coming too late to boost yields significantly.
Uncertainty over possible changes to U.S. biofuel mandates kept some caution in the corn market.
WHEAT was mixed, with gains in Minneapolis spring wheat and losses in the winter wheats.
Canadian wheat production is forecast at anywhere from 18.9 million tonnes to 25.5 million tonnes ahead of Monday’s report, with even the most optimistic top end guess about 10 million tonnes below last year’s crop 35.2 million tonne crop.
While the declining Canadian spring wheat prospects supported Minneapolis, world wheat supplies remain ample overall.
