North American Grain/Oilseed Review: Canola has strong finish to week
By Glen Hallick, MarketsFarm
WINNIPEG, March 15 (MarketsFarm) – ICE Futures canola contracts were stronger at the end of trading on Friday.
Increases today were from routine business and crush activity, according to a trader. He said fund players are now maxed out, with large short positions.
Farmers are holding on to their canola, as they are looking to get better prices. Large supplies plus a large carryover have weighed on values.
Tensions between Canada and China remain. China has yet to provide any evidence to back up its claim a canola shipment from Richardson International was contaminated with bacteria. Canadian Agriculture Minister Marie-Claude Bibeau said Richardson’s samples were retested in Canada and no pests were found. Richardson declined to comment on the matter.
Data from the Canadian Grain Commission shows canola exports are well off last year’s pace. So far this crop year 5.9 million tonnes have been exported compared to 6.4 million tonnes this time last year.
The Canadian dollar slipped below 75 U.S. cents at midafternoon Thursday to 74.93 U.S. cents.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday.
United States President Donald Trump said the next three to four weeks will make or break a trade deal with China. Although talks have slowed, progress is still being made and a deal is expected by the end of April.
This week’s intense snow and rain in several U.S. states added to the heavy snow pack in some regions and caused flooding in others. Delays to spring planting could see U.S. farmers switch from corn to soybeans.
Allendale Marketing made its forecasts of U.S. farmer planting intentions. Allendale forecast 84.3 million acres of soybeans, that’s down by nearly 5 million acres from last year.
CORN futures were stronger on Friday. Allendale projected 91.4 million acres of corn, an increase of 2.3 million acres over 2018.
WHEAT futures were also stronger on Friday. Allendale predicted 47.4 million acres of wheat, a drop of 400,000 acres from 2018.
European Union and Black Sea wheat prices were up on Friday, which provided support for U.S. wheat.