Canola futures on the Intercontinental Exchange broke through the C$600 per tonne support level for the front contracts on Friday. Prices hit some of their lowest levels since September 2020. Increased farmer shipments of canola, coupled with weak exports, weighed on the oilseed. Additional pressure on rapeseed came from sharp declines in the Chicago soy complex, along with more modest losses in European rapeseed and Malaysian palm oil. Weakness in global crude oil prices weighed on vegetable oil values.The Canadian dollar retreated by mid-afternoon Friday, with the loonie trading at 74.28 US cents compared to Thursday’s close of 74.60.There were 55,789 contracts traded on Friday, compared to 43,762 on Thursday. Spreading accounted for 44,010 contracts traded.
SOYBEAN
Futures on the Chicago Board of Trade were weaker on Friday following a surge in the US dollar.Despite a heat wave in Brazil, soybean production was expected to be fairly high, although many analysts were forecasting a cropof less than 150 million tonnes.Analysts expected Brazil to harvest 145 million tonnes of soybeans.
CORN
Futures were lower on Friday due to weak demand from China.The weather outlook for the continental US called for above normal temperatures for the next 10 days before returning to normal. Precipitation was forecast for the central and southern plains.Trade continued to forecast a large South American corn crop.Total January grain exports from Argentina were reported to be up 64% as the new government sharply devalued the country’s peso.
WHEAT
Futures were mixed on Friday, with gains in Minneapolis and Kansas City wheat and losses in Chicago wheat.
In contrast to corn, China was said to be seeking more wheat purchases, particularly from the EU and the US.
Grain shipments through the Red Sea/Suez Canal continued to be diverted around the Cape of Good Hope due to rocket and drone attacks by Iran-backed Houthi rebels in Yemen.
The Food and Agriculture Organization of the United Nations reported a slight decline in the World Food Index from 119.1 in December to 118.0 in January.Farmers continued to protest across much of the European Union, but two major farming groups in France asked their members to go home after talks with the Marcon government.
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