Intercontinental Exchange (ICE) canola futures turned around on Friday, moving higher due to spillover from gains in the Chicago soy complex.
Moderate increases in European rapeseed provided additional support to canola. Meanwhile small losses in Malaysian palm oil tried to temper further gains. Global crude oil prices found direction in choppy trading, with increases lending support to vegetable oils.
Ahead of the Statistics Canada production report on Monday, trade expectations for canola range from 18.6 million to 20.3 million tonnes. Previously, the federal agency called for 18.4 million tonnes of the oilseed.
The Canadian Grain Commission reported producer deliveries of canola for the week ended Aug. 21 were 123,100 tonnes, down from the previous week. Canola exports improved to 62,900 tonnes, while domestic usage eased back to 163,900 tonnes.
A good chunk of the Prairies is forecast to see rain either today or tomorrow, which will delay the region’s harvest. As temperatures remain warm next week, no precipitation is expected.
After initial gains, the Canadian dollar fell back at mid-afternoon as the loonie dropped to 76.77 U.S. cents, compared to Thursday’s close 77.30.
There were 19,807 contracts traded on Friday, which compares with Thursday when 20,528 contracts changed hands. Spreading accounted for 12,958 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 855.80 up 22.10
Jan 863.30 up 21.00
Mar 868.60 up 19.80
May 869.20 up 18.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Friday following the announcement by United States Federal Reserve Chair Jerome Powell that the central bank intends to keep raising interest rates to combat inflation.
The U.S. Department of Agriculture (USDA) announced a private sale of 146,000 tonnes of new crop soybeans to unknown destinations.
The USDA issued a statement acknowledging there were errors in this week’s export sales report, due in part to its new reporting method.
The Pro Farmer Crop Tour swung through Iowa and Minnesota today. Soybean pod counts in Iowa were estimated at 1,174 per three-by-three-foot square. That’s down from last year’s count of 1,128. The Minnesota count was 1,100, up a bit from 1,027 a year ago. The tour’s final results are to be released this evening in Rochester, Minn.
CORN futures were stronger as well on Friday, due to spillover from soybeans.
The Pro Farmer tour pegged corn yields in Iowa at 183.8 bushels per acres, down from last year’s estimate of 190.8. In Minnesota, the yields were projected to be 190.4 bu/ac. and higher than last year’s 177.4.
The European Union slashed its corn production by nearly 9.9 per cent at 59.3 million tonnes due to the extensive heat. That would make for the EU’s smallest output in seven years.
France said its corn crop rates 50 per cent good to excellent, losing seven points from last week.
Drought was also hurting the corn crop in China, according to a report.
WHEAT futures also followed suit on Friday with double-digit increases.
The U.S. Southern Plains received rain, which should help crops in the region. The Northern and Central Plains have been forecast to get scattered showers during the weekend.
Drought in China is likely to reduce its wheat production.
Russia’s August wheat exports were at 2.5 million tonnes so far, needing another 1.5 million to meet its target.
The Buenos Aires Grain Exchange rated Argentina’s wheat crop at nearly 80 per cent good to excellent.
In international purchases, Taiwan bought 34,025 tonnes of milling wheat and Jordan issued a tender for 120,000 tonnes of feed barley. Also, Iran put out a tender for 60,000 tonnes of milling wheat and Bangladesh issued one for 50,000 tonnes.
