The ICE Futures canola market was weaker at Friday’s close, as North American agricultural markets reacted to the United States Department of Agriculture’s monthly supply/demand report.
The government agency upped its projection for U.S. soybean yields which initially weighed on that market, pulling canola lower as well. While soybeans managed to recover from their losses, the Canadian market remained pointed lower.
Canadian crop conditions remain relatively favourable in most areas, although some concerns persist with many fields thought to be well behind normal in development.
About 19,383 canola contracts traded on Friday, which compares with Thursday when 25,562 contracts changed hands. Spreading accounted for 9,418 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade fell sharply in immediate reaction to updated yield estimates from the United States Department of Agriculture but managed to uncover support to the downside to settle higher.
U.S. soybean yields for the 2022 crop were pegged at 51.9 bushels per acre by the government agency, which was up from the July forecast of 51.5. Average pre-report expectations had been for a downward revision to the number. Total U.S. soybean production is now forecast at 4.531 billion bushels, up by 26 million from July.
World soybean ending stocks for the current 2021/22 marketing year were raised by a million tonnes from the July forecast to 89.7 million tonnes. The estimated 2022/23 world soybean carryout was raised by 1.8 million tonnes – to 101.4 million.
U.S. CORN yields were revised lower on the month, lending some support to that market.
Corn yields were pegged at 175.4 bu/ac, which was in line with expectations, but down from the USDA’s earlier forecast of 177 bu/ac.
World corn ending stocks for 2021/22 were pegged at 311.8 million tonnes, down by 500,000 tonnes from July. New crop corn ending stocks at an estimated 306.7 million tonnes were well below the July estimate of 312.9 million.
WHEAT futures were mixed at the close, after posting large losses in early activity.
Total U.S. wheat production for 2022/23 was estimated at 1.78 billion bushels, which would be up slightly from the July forecast and up 8 per cent on the year. Average winter wheat yields, at 47.9 bushels per acre were down by 0.1 bushels from July, while spring wheat yields at 47.8 bushels per acre were up by 0.8 on the month and well above last year’s average spring wheat yield of 31.2 bushels per acre.
World wheat ending stocks were lowered by 0.2 million tonnes, to 267.3 million tonnes. That would be down from the 2021/22 wheat ending stocks projection of 276.4 million tonnes.
