Intercontinental Exchange (ICE) canola futures finished mixed on Friday, with increases in the front months and losses in the deferred positions.
Support came from strong upticks in Chicago soyoil and more moderate gains in the off session of Malaysian palm oil. Losses in Chicago soybeans and soymeal, along with those in European rapeseed put pressure on canola values. Crude oil prices traded either side of steady, giving little direction to vegetable oils.
Crop conditions remained quite favourable across the Prairies, which put more pressure on canola. However, there are delays to the oilseed’s development.
The Canadian Grain Commission reported producer deliveries of canola for the week ended Aug. 14 were 148,200 tonnes, rising 21 per cent. Canola exports were a paltry 2,900 tonnes and 58 per cent less than the previous week. Domestic usage climbed more than 21 per cent at 174,600 tonnes.
The Canadian dollar was lower at mid-afternoon, with the loonie at 76.97 U.S. cents, compared to Thursday’s close 77.35.
There were 32,538 contracts traded on Friday, which compares with Thursday when 27,724 contracts changed hands. Spreading accounted for 23,308 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 818.40 up 3.00
Jan 826.90 up 2.50
Mar 832.80 up 1.40
May 835.40 dn 0.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) closed slightly on Friday, after giving up the gains for most of the session.
The United States Southern Plains remains forecast to receive rain over the coming days. Across the region, one to four inches of precipitation is expected, although Northern Texas could see as much as 10 inches.
The International Grains Council (IGC) released its monthly global supply and demand report. Soybean production for 2022/23 bumps up 0.8 per cent at 389 million tonnes. The carryover is down 3.7 per cent at 52 million tonnes.
China issued its first national drought alert of 2022 on Thursday, due to intense heat that’s affecting the Yangtze River basin.
WHEAT futures were stronger on Friday, correcting from this week’s steep losses.
The IGC trimmed 2022/23 global wheat production by 0.18 per cent at nearly 2.25 billion tonnes, while ending stocks are down 0.8 per cent at 577 million tonnes.
Russia is hoping to regain it lost wheat exports to Vietnam after a creeping thistle was discovered in a shipment. A report said Russia sold 188,000 tonnes of wheat to Vietnam in 2021, down 93 per cent from 2018.
Water levels on the Rhine River in Germany are reported to be too low to transit by a growing number of empty cargo vessels.
CORN futures were higher on Friday, due to spillover from wheat.
The Buenos Aires Grain Exchange pegged Argentina’s 2021/22 corn harvest at 52 million tonnes, for a six per cent increase from its forecast last week. The exchange placed the harvest at 98 per cent complete.
The IGC reduced global corn production for 2022/23 by 0.8 per cent at 1.18 billion tonnes, while the carryover slips 2.2 per cent at 265 million tonnes.
The corn crop in France fell to 50 per good to excellent, for a drop of three points on the week, according to FranceAgriMer. That marked the lowest rating in 11 years.
