WINNIPEG, Dec. 18 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts closed stronger on Friday, hitting multi-year highs following reports of high canola exports and domestic usage.
Canola deliveries for the week ended Dec. 13 totalled 541,200 tonnes, which is an increase of 13.6 per cent from the previous week. Canola exports were 308,600 tonnes, up 22 per cent on the week. Domestic usage was 229,900 tonnes, rising 18.2 per cent. Canola prices will likely continue to rise in order to ration demand.
Chicago soyoil also hit multi-year highs, with the January contract closing slightly over 40 U.S. cents per pound.
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Continual strength in the Canadian dollar kept a lid on further gains for canola. The loonie was around 78.5 U.S cents.
Today, 31,547 contracts were traded, which compares with Thursday when 39,185 contracts changed hands. Spreading accounted for 19,130 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) closed higher on Friday, after hitting six-year highs yesterday.
Some market analysts have trimmed their production estimates for this year’s United States soybean crop, which has provided support to markets.
Another private firm estimated the United States will plant 89.4 million acres of soybeans in 2021. That would be up 6.3 million acres from the previous year.
The Buenos Aires Grain Exchange (BAGE) reported Argentina’s soybean crop is is 81 per cent planted for the first soybean crop. They also reported 1.6 per cent of beans were blooming, compared to the 12.5 per cent average.
CORN futures were also stronger today.
Export sales continue to be very strong, with Mexico being the most popular destination. China continues to buy U.S. corn as well.
BAGE reported national corn planting in Argentina was over 55 per cent completed, down from the five-year average of 61 per cent. The report also slowed 4.8 per cent of the crop was silking, which is below the 15 per cent average.
Ethanol demand remains in flux, as reports from the Energy Information Administration (EIA) showed weekly fuel demand had dropped 13 per cent between November and early December due to increased lockdown restrictions to combat the spread of COVID-19.
WHEAT futures were mixed today today.
Growing conditions in the plains are still dry. Snow cover across the Upper Midwest is very minimal, while a small portion of the Southern Plains has light cover.
Ukraine’s state statistic service estimated their 2020 wheat production at 25.3 million tonnes.
BAGE reported Argentine wheat harvest is 66.4 per cent complete, trailing last year by 11.1 percentage points, but slightly ahead of the five-year average.
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