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North American Grain/Oilseed Review

By Marlo Glass, MarketsFarm

WINNIPEG, Feb. 21 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts ended slightly lower in nearby contracts on Friday, despite holding steady for most of the trading session.

The Canadian dollar gained strength at the end of the week, keeping some pressure on canola prices.

A generally weak tone for the soy complex also weighed on canola. Last week, soybean export sales were 20 per cent below the four-week average, and significantly below market expectations.

On Friday, 27,519 contracts were traded, which compares with Thursday when 23,930 contracts changed hands. Spreading accounted for 13,734 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) finished weaker on Friday, dragged down by low export demand and increasing yields expected in 2020.

Soybean acres are expected to increase by over ten per cent from last year to total 85 million acres.

According to the United States Department of Agriculture (USDA), last week, soybean export sales totaled just over 494,000 tonnes. That’s 23 per cent lower than the previous week, and also about 20 per cent lower than the prior 4-week average. Market participants had expected soybean exports to be between 700,000 and 1.2 million tonnes.

Soybean cake and meal sales totaled about 169,000 tonnes last week, which was 28 per cent lower than the previous week and also lower than trade expectations. The one bright spot in the soy complex was soyoil, which posted gains of about half a cent. Last week, soyoil sales totaled 42,000 tonnes, which was higher than trade expectations.

CORN futures were weaker on Friday.

Last week, corn export sales totalled over 1.2 million tonnes, which was 29 per cent higher than the previous week and higher than trade expectations.

The USDA predicts that 5.45 billion bushels of corn will be used for ethanol in the coming year.

WHEAT futures were lower to end the week.

Export sales last week totaled 346,000 tonnes, which was 46 per cent lower than the previous week and also below trade expectations.

Yesterday, at the Annual Ag Outlook Forum, the USDA predicted wheat production to total 1.836 billion bushels in the upcoming growing season. That’s the lowest level in almost 15 years.

END

Futures Prices as of February 21, 2020

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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