By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 10 (MarketsFarm) – The ICE Futures canola market was slightly stronger at Friday`s close, but settled well off its session highs.
A move higher in Chicago Board of Trade soybeans in the aftermath of the latest supply/demand estimates from the United States Department of Agriculture provided some underlying support for canola. However, soyoil was lower on the day and the Canadian dollar held steady.
The November canola contract had climbed as high as C$870 per tonne during the session, but settled only one dollar higher on the day at C$853.70.
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While seasonal harvest pressure was starting to be felt in the market, declining crop prospects due to the drought earlier in the growing season remained supportive overall. Ideas that Thursday’s selloff was overdone also helped underpin canola ahead of the weekend.
About 31,699 canola contracts traded on Friday, which compares with Thursday when 40,931 contracts changed hands. Spreading was a feature, accounting for 21,430 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, seeing a bullish reaction to the latest supply/demand report from the United States Department of Agriculture.
The USDA raised their average yield estimate for the 2021 U.S. soybean crop to 50.6 bushels per acre, up by 0.6bu/ac from the last report. However, acres were revised slightly lower and total production was only up by 35 million bushels from the August report, at 3.37 billion bushels.
The bean market saw some wide price swings in the immediate aftermath of the report, but quickly turned higher overall.
Weekly U.S. soybean export sales of 1.47 milliion tonnes were in line with expectations, with the USDA also reporting additional private sales of 132,000 tonnes of soybeans to China this morning.
CORN briefly fell to its lowest levels since January on Friday, as the USDA forecast the second largest corn crop on record. However, the selling subsided and prices managed to move higher with soybeans.
Average U.S. corn yields for the year were raised to 176.3 bu/ac, with planted area up by 600,000 acres from earlier estimates. The total crop was pegged at 14.996 billion bushels – up 1.7 per cent from August. Stocks were also revised higher.
WHEAT was mixed, with gains in spring wheat and losses in the winter wheats.
Weekly U.S. wheat export sales were up 34 per cent from the previous week, at 388,400 tonnes.
The USDA pegged Canada`s wheat crop at 23 million tonnes in today’s report. That would be in line with Statistics Canada’s current estimate.
