By Glen Hallick, MarketsFarm
WINNIPEG, August 9 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Friday, as support came from Chicago soyoil and weather conditions, said a trader.
Soyoil was up by more than a half cent today, as China has a shortage of it, and has been buying palm oil. In turn, that’s boosted veg oil contracts, including soy. China has been unable to turn to Canada for canola due to the unresolved dispute between the countries. However, China has considered turning to Argentina for soyoil, the trader said.
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Dry weather in the United States and Canada has been affecting crops, especially soybeans that were planted late and slow to develop. Hot temperatures in Europe have farmers there looking a lower production numbers for their rapeseed.
It was another day of increased volumes as spreading increased.
There were 27,090 contracts traded on Friday, which compares with Thursday when 24,311 contracts changed hands. Spreading accounted for 13,364 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 454.10 up 1.90
Jan 462.60 up 1.90
Mar 469.70 up 2.20
May 475.80 up 2.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Friday, due to positioning ahead of the United States Department of Agriculture’s (USDA) supply and demand report on Monday.
Market predictions for soybean acres averaged at 81.0 million acres.
Trade estimates put global soybean ending stocks at slightly under 113.0 million tonnes for old crop and approximately 104.5 million for new crop.
Total soybean export commitments, as of August 1, were at 106 per cent of the USDA’s projection. Also, accumulated shipments were at 91 per cent of projections, a little back of the pace of 95 per cent.
Storms were forecast for the U.S Plains and more dry weather was predicted for the central Corn Belt.
With a US$20 per tonne rise in Brazil soybean prices due to the U.S./China trade war, China has found them to be close to U.S. prices and may back out of purchases, according to a report.
With that being said, there was another report stating Brazil has a shortage of soybeans with approximately 15.7 million tonnes on hand, according to the consultancy firm AgRural. The harvest of Brazil’s second crop has not begun.
Meanwhile, farmers in Argentina have been hoarding their soybeans ahead of the country’s presidential election on August 11. Uncertainty and volatility often accompany Argentine elections. Farmers have been hoping for increased premiums generated by Chinese demand.
CORN futures were slightly lower on Friday, as bids failed to find a clear direction.
The average market prediction for corn acres in Monday’s supply and demand report was just short of 88.0 million.
Market predictions for Monday’s supply and demand report have called for the global old crop corn carry over to be almost 329.8 million tonnes. The global carryover for new crop corn was pegged at about 290.1 million tonnes.
FranceAgriMer lowered the condition of France’s corn crop to 60 per cent good to excellent due to hot, dry conditions. In June the crop was at 82 per cent.
WHEAT futures were mixed on Friday, with small gains in Chicago and small losses in Minneapolis and Kansas City.
The USDA estimated global carryover for old crop wheat to be at more than 275.2 million tonnes, with the new crop carryover at 286.5 million tonnes.
SovEcon revised its estimate of Russia’s wheat harvest this year to 74.4 million tonnes, down 700,000 tonnes.
The French soft wheat harvest reached 98 per cent complete, up from 87 per cent last week, according to FranceAgriMer.
