By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Dec. 6 (MarketsFarm) – The ICE Futures canola market was stronger on Friday, as the market reacted to the latest production estimate from Statistics Canada.
The government agency pegged Canada’s 2019 canola crop at 18.65 million tonnes. That came in well below average trade expectations and would represent an 8.3 per cent drop on the year. While some traders remain of the opinion that the actual crop will still end up larger when spring harvested fields are factored in, the headline number was enough to give the futures a boost on Friday.
A rally in Chicago Board of Trade soyoil and weakness in the Canadian dollar also provided support, as that combination underpinned crush margins.
However, steady farmer deliveries and large visible supplies tempered the advances.
About 50,892 canola contracts traded on Friday, which compares with Thursday when 29,355 contracts changed hands. Spreading accounted for 35,530 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were higher on Friday, hitting their best levels in two weeks.
News that China was issuing tariff exemptions on United States soybeans added to optimism over improving trade relations between the two countries ahead of a Dec. 15 deadline that would see the U.S. increase tariffs on Chinese imports.
Canada’s soybean crop was estimated at 6.0 million tonnes by Statistics Canada. That would be down by 18 per cent on the year, due to a smaller acreage base and poor yields.
Large South American crop prospects tempered the upside in soybeans.
Corn held near unchanged, lacking any clear direction.
The U.S. Department of Agriculture announced private export sales of 245,000 tonnes of corn to Mexico this morning.
Canada’s corn crop was pegged at 13.4 million tonnes by Statistics Canada, which would be down by 3.5 per cent on the year.
WHEAT futures were mixed, with a late turn higher in Chicago soft wheat and losses in Kansas City and Minneapolis.
Total Canadian wheat production in 2019 was estimated at 32.3 million tonnes by Statistics Canada. That was down slightly from the September estimate, but in line with the year ago level.
Russia’s wheat crop was estimated at 75 million tonnes by that country’s agriculture ministry, which would be up by about three million tonnes on the year.
Commodity Future Prices
Prices are in Canadian dollars per metric ton