By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Sep. 28 (CNS Canada) – ICE Futures canola contracts were weaker on Friday, as a downturn in the Chicago Board of Trade soy complex spilled over to weigh on prices.
The losses in soybeans were tied to bearish quarterly stocks data released by the United States Department of Agriculture.
Strength in the Canadian dollar added to the softer tone in canola, with the currency up by about two-thirds of a cent relative to its U.S. counterpart.
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However, persistent concerns over cool and wet conditions delaying harvest operations across the Canadian Prairies remained supportive.
Alberta Agriculture released its weekly crop report during the day showing that only 16 per cent of the canola crop was harvested in the province as of Sep. 25. That compares with 41 per cent at the same point a year ago.
About 31,015 canola contracts traded, which marked the biggest volume trading day since clearing operations moved to New York at the end of July and compares with Thursday when 16,489 contracts changed hands. Spreading accounted for 10,156 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, as the market reacted to bearish stocks data.
United States soybean stocks as of Sep. 1 came in at 438 million bushels, according to a U.S. Department of Agriculture report report out this morning. That was above average trade estimates and well above the 302 million tonnes on hand at the same point a year ago.
In addition to the big stocks, soybeans were also pressured by the ongoing trade dispute between the U.S. and China.
However, harvest delaying weather in parts of the Midwest provided some support.
CORN futures were also pressured lower by bearish stocks data. Quarterly U.S. corn stocks were pegged at 2.140 billion bushels by the USDA. That was above the top end of pre-report estimates, but still below the year ago level of 2.293 billion.
Rising South American production prospects also weighed on corn.
WHEAT futures settled slightly lower, with updated USDA production estimates accounting for some of the activity.
Total U.S. wheat production for 2018/19 was pegged at 1.884 billion bushels by the USDA. That was up by 7 million bushels from an earlier estimate.
Spring wheat production in the country, at 623 million bushels, was up by nine million bushels from the August estimate and well above the 385 million bushel crop grown last year.
