By Glen Hallick, MarketsFarm
WINNIPEG, April 30 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures closed stronger on Friday, due to tight supplies and dry conditions across the Prairies.
Additional support came from sharp increases in the Chicago soy complex, as well as moderate gains in European rapeseed. Lower Malaysian palm oil weighed on values.
Strong demand for canola continues and is unlikely to recede anytime soon, according to a trader. That said, the Canadian Grain Commission reported year-to-date producer deliveries of canola total 16.64 million tonnes for the week ended April 25. That’s a jump of 12.1 per cent over deliveries the same time last year. Canola exports of nearly 8.6 million tonnes are 16.9 per cent ahead of last year. Domestic usage of 7.9 million tonnes is up 3.1 per cent on the year.
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At mid-afternoon, the Canadian dollar was slightly higher with the loonie at 81.45 U.S. cents compared to Thursday’s close of 81.35.
Friday marked the last trading day before deliveries of the May contract are possible, and wrapped up at C$908.70 per tonne. The final day trading will be May 15.
There were 22,340 contracts traded on Thursday, which compares with Wednesday when 16,985 contracts changed hands. Spreading accounted for 11,114 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 868.70 up 25.90
Nov 710.20 up 20.30
Jan 706.70 up 18.00
Mar 703.50 up 18.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Friday, turning around after significant declines earlier in the session.
The United States Department of Agriculture (USDA) reported that nearly all of the soybeans purchased by China have been exported.
The Buenos Aires Grain Exchange (BAGE) estimated Argentina’s soybean harvest jumped from 14.4 per cent complete to nearly one-third finished, due to dry weather. This time last year the harvest was just over 68 per cent done. The BAGE has projected the harvest to be about 43 million tonnes, while other estimates are around 46.5 million. Initially, 50 million tonnes were anticipated.
There have questions regarding soybean production in Brazil because of the wet conditions that had been experienced. However, most estimates have focused on 133 million tonnes, somewhat higher than recent projections.
Effective May 3, the new daily limit for CBOT soybeans will increase from 70 cents per bushel to US$1.00/bu. The limit for soymeal increases from US$25 per hundredweight to US$30/cwt., and soyoil goes from 2.5 cents per pound to 3.5 cents/lb.
CORN futures were stronger as well on Friday, hitting eight-year highs.
The USDA reported that 12.7 million tonnes of corn acquired by China still remains in the U.S.
Ahead of the USDA Fats and Oils report on Monday, trade predictions have called for 5.13 million tonnes of soybeans to have been crushed in March. That would be down 1.9 per cent when compared to the March 2020 crush.
The trade now expects corn production in Brazil to tumble from upwards to 109 million tonnes to about 93 million. Unlike the country’s soybeans, its corn has been plagued by dry conditions.
The BAGE pegged the Argentine corn harvest at 19.5 per cent complete, and expects it to reap 43 million tonnes. Other estimates are around 45 million tonnes, and are well off of the initial projection of 50 million, due to dryness.
France reported its corn crop was 74 per cent planted, compared to 41 per cent the week earlier.
The new daily limit for CBOT corn on Monday moves from 25 cents/bu. to 40 cents.
WHEAT futures were higher on Friday, with the largest increases in Minneapolis wheat.
The U.S. Drought Monitor reported drought conditions have continued in several key growing regions throughout the country. That included North Dakota and parts of Montana.
The trade has projected spring wheat planting to be 45 to 50 per cent complete when the USDA issues its weekly crop progress report on Monday.
A record wheat crop of 109 million tonnes has been reported in India.
The USDA attaché in Australia estimated the country’s 2021/22 wheat production at 27 million tonnes, of which 19 million tonnes is expected to be exported.
France said the condition of its wheat crop rated 81 per cent good to excellent, and is down four points from the previous week.
The European Union trimmed its wheat production by 1.5 per cent at 124.8 million tonnes and kept exports at 30 million tonnes. The EU reduced its wheat ending stocks by 11.6 per cent at 11.4 million tonnes.
The daily limits for Chicago and Kansas City wheat increases on Monday by a nickel to 45 cents/bu., while the limit for Minneapolis wheat remains at 60 cents/bu.
