WINNIPEG — After a severe drop in prices on Thursday, the ICE Futures canola market recovered all of its losses on Friday.
Statistics Canada (StatCan) released its principal field crop production estimates earlier on Friday with the central data agency projecting 18.17 million tonnes of canola produced for the 2022-23 marketing year, one million fewer than what the trade expected.
However, both European rapeseed and Malaysian palm oil were lower on Friday while Chicago soyoil continued with Thursday’s declines. Crude oil was lower as OPEC+ meets today to discuss production output.
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ICE canola stronger at midday Thursday
Glacier FarmMedia — The ICE Futures canola market was stronger at midday Thursday, correcting higher after touching its lowest levels…
At mid-afternoon, the Canadian dollar lost one-quarter of a U.S. cent compared to Thursday’s close.
About 39,870 canola contracts were traded on Friday, which compares with Thursday when 30,700 contracts changed hands. Spreading accounted for 25,650 of the contracts traded.
CORN prices ended lower for the fourth-straight session, partially due to weakened demand for the U.S. crop and ongoing grain shipments on the Black Sea.
Statistics Canada projected Canadian corn production for the 2022-23 marketing year at 14.54 million tonnes, slightly below the average estimate of 14.8 million from the trade.
The USDA’s monthly grain crushing report showed nearly 449 million bushels of corn were used for ethanol in October, up 17 per cent from September but down four per cent from last year.
Brokerage firm StoneX has projected this year’s Brazilian corn crop at 130.3 million tonnes, 5.5 per cent higher than its previous estimate.
SOYBEAN prices made a small rebound after Thursday’s severe price drop.
Prices are drawing support from dry weather in Argentina, which is threatening to reduce the country’s soybean crop. Argentine soybean plantings are at 28 per cent complete compared to 48 per cent last year.
Soybean production in Canada was projected to be 6.54 million tonnes, in line with trade expectations.
WHEAT prices on the Chicago Board of Trade fell by at least 15 U.S. cents per bushel to end the week.
Canada’s 2022-23 wheat crop is projected to be at 33.82 million tonnes, one million less than what the trade predicted and a three per cent decline from StatCan’s September estimate. Durum wheat production is pegged for 5.44 million tonnes, a 460,000 tonne decrease from trade expectations.
Precipitation is expected for most of the continental U.S. this week, while weak U.S. wheat exports and Black Sea shipments also bring pressure to prices.
