Canola futures on the Intercontinental Exchange (ICE) pushed higher on Friday, due to spillover from sharp upticks in Chicago soybeans and soymeal. Hot and dry conditions in the United States continued to drive up soy values.
Temperatures have been pushing above 30 degrees Celsius in Alberta and Saskatchewan, with the system moving into Manitoba by Saturday. The heat could stress canola across the region.
There was additional support from stronger values in the after session of Malaysian palm oil as well as European rapeseed. Global crude oil prices stepped away from larger increases but were still providing spillover to vegetable oils.
With one more week to report on, the Canadian Grain Commission said canola exports reached 5.06 million tonnes for 2021/22. That’s down 51.6 per cent from the previous year.
The Canadian dollar was slightly higher at mid-afternoon, with the loonie at 77.99 U.S. cents, compared to Thursday’s close 77.91.
There were 35,031 contracts traded on Friday, which compares with Thursday when 26,326 contracts changed hands. Spreading accounted 25,956 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 892.80 up 29.20
Jan 902.00 up 29.80
Mar 910.00 up 29.70
May 915.10 up 28.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) remained on the upswing on Friday, as heat and dry conditions in the United States threaten the soybean crop.
The U.S. Department of Agriculture (USDA) announced a private sale of 132,000 tonnes of new crop soybeans to unknown destinations.
The USDA is scheduled to issue its next supply and demand estimates on Aug. 12. A reduction in soybean productions numbers is likely, according to an analyst.
CORN futures were slightly higher on Friday, as losses in wheat weighed on values.
Hot and dry conditions continued to take a toll on crops in the European Union. As corn yields diminish, thoughts were turning to the EU becoming a net importer of corn, rather than a net exporter.
Meanwhile in South America, reports pointed to Brazil having a record corn harvest.
WHEAT futures were weaker on Friday, due to the export agreement signed by Russia and Ukraine beginning to take effect,
The Wheat Quality Council Tour of North Dakota wrapped up on Thursday. The tour’s overall estimate of spring wheat yields came in at 49.1 bushels per acre – the second highest projection in the tour’s history.
Low water levels on the Rhine River have meant vessels are carrying no more than half of their usual capacity.
