By Glen Hallick, MarketsFarm
WINNIPEG, May 26 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures closed Friday on a positive note after spending the week contending with losses.
Support for the Canadian oilseed came from gains in the Chicago soy complex, European rapeseed and Malaysian palm oil. Although upticks in global crude oil prices have faded a little, they continued to provide support for the vegetable oils.
With dry conditions on the Prairies, spring planting rolled along as farmers make good progress in catching up with the five-year averages. However, that dryness has started to become something of a concern for the markets.
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The Canadian Grain Commission reported producer deliveries of canola total 15.23 million tonnes so far in 2022/23 and remained well of those this time last year. Canola exports were significantly ahead of the year ago pace at 7.02 million tonnes. Domestic usage has also kept a strong run compared to last year at 8.27 million tonnes.
The Canadian dollar was relatively steady at mid-afternoon Friday, with the loonie at 73.44 U.S. cents, compared to Thursday’s close of 73.38.
The markets in the United States will be closed on May 29 for Memorial Day. Trading is scheduled to resume that evening at 7 pm CDT.
There were 22,456 contracts traded on Friday, which compares with Thursday when 44,826 contracts changed hands. Spreading accounted for 11,808 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 689.70 up 3.50 Nov 658.80 up 3.80 Jan 653.50 up 5.00 Mar 669.20 up 5.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Friday due to rising concerns over drought conditions in the United States.
Trade expectations placed U.S. soybean planting at 85 to 90 per cent complete, up from last week’s 66 per cent done. The Department of Agriculture will delay its crop report to Tuesday.
Viterra and Bunge have started merger talks, however at this time it’s uncertain if a deal will be reached. Concerns already have risen that a merged company could control too much of the world’s grain. Previous discussions between the two in 2017 were rebuffed by Bunge.
Germany’s 2023/24 winter rapeseed crop is expected to be 4.28 million tonnes, roughly on par with that from last year. The country is among the European Union’s top rapeseed producers.
CORN futures were higher on Friday also due to hot and dry conditions.
Corn planting in the U.S. is projected to be virtually complete in most corn-growing areas, rising from 81 per cent finished a week ago. However, 26 per cent of that corn crop is believed to be in drought conditions.
South Africa said it’s looking to increase its corn exports in 2023/24 thanks to a bumper crop of 16.19 million tonnes. In 2022/23 the country produced 15.47 million tonnes of which 3.60 million has been exported so far.
WHEAT futures were stronger on Friday in sympathy with soybeans and corn.
Winter wheat conditions in the U.S. are expected to remain at 31 per cent good to excellent. Spring wheat planting is forecast to reach 60 per cent finished.
The 2022/23 wheat harvest in India is projected to hit a record 112.70 million tonnes, up from the 107.74 million tonnes the year before. India is the world’s second largest wheat producer.
Despite Russia recently signing an agreement to further extend the Black Sea export deal, it’s already demanding sanctions be removed by the time the latest extension expires in July.
France reported its wheat crop held at 93 per cent good to excellent this week, with its durum at dipping one point at 86 per cent good to excellent.
Germany’s total wheat crop for 2023/24 was trimmed by 0.9 per cent at 22.31 million tonnes. The country is the EU’s second largest wheat producer.
