WINNIPEG – ICE Futures canola contracts were stronger on Wednesday, as bids stepped away from contract lows.
Canola received support from a weaker Canadian dollar and the Principal Field Crop Acreage report released by Statistics Canada earlier today.
The Canadian dollar slipped to 74.15 U.S. cents by midafternoon Wednesday.
As expected, Statistics Canada has projected 21.3 million acres of canola this year. That’s down by 1.5 million acres from last year and 345,000 acres below the five-year average.
“This trimming of acreage is an important market factor, but ultimately production is decided by yield,” said Mike Jubinville of MarketsFarm Pro.
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Australian farmers are forecast to grow slightly more canola and barley this year, while wheat production may dip, according to the latest estimates from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).
He stressed there’s going to be a 3.5 million to 4 million-tonne old crop carryout plus China’s ban on canola imports from Canada.
There were 36,896 contracts traded on Wednesday, which compares with Tuesday when 40,677 contracts changed hands.
SOYBEAN futures at the Chicago Board of Trade (CBOT) dropped on Wednesday due to pessimism towards United States/China trade talks resuming next week.
High-level negotiations have been scheduled to resume on April 30 in Beijing and continuing in Washington on May 8. Despite the news, the commodities market remained skeptical due to absence of anything tangible from previous rounds of talks.
A Calgary-based analyst stated the trade deal will no longer have the strong upswing for soybean prices as previously believed. Rather, there should a slight a bounce, but nothing more.
Also, concerns about large global supplies have remained.
The U.S. Department of Agriculture releases its weekly export sales report on Thursday. Market projections have been for 11 million to 27.6 million bushels sold for the week ended April 18.
CORN futures were weaker on Wednesday, caught up in the spillover from soybeans and wheat.
Market projections have called for export sales of 23.6 million to 43.3 million bushels.
The USDA indicated the agency will not collect data on damage to grain stored in bins in flooded areas of the country. However, Indigo Ag has estimated five million to 10 million bushels of corn and soybeans incurred flood damage, according to a report.
Ethanol production improved to about 1.05 million barrels for the week ended April 19.
WHEAT futures were weaker on Wednesday, following the release of the Principal Field Crop Acreage report by Statistics Canada.
Total wheat acres in Canada were projected to increase by about 940,000 acres this year to almost 25.7 million. Durum has been set to drop by about 1.2 million acres to five million. Spring wheat has increased by almost 2.1 million acres to 19.4 million. Winter wheat has remained pretty much the same at about 1.3 million acres.
With the increase of Canadian wheat acres, CBOT saw wheat prices tumble six to 10 cents on Wednesday. On top of that, U.S. wheat exports have been struggling in a highly competitive global market.
One saving grace has been the USDA projection for the fewest wheat acres planted in the country in a century.
OUTSIDE MARKETS
Light crude oil nearby futures in New York were up xx cents at US$xx.xx per barrel.
In the afternoon, the Canadian dollar was trading around USxx.xx cents, down from xx.xx cents the previous trading day. The U.S. dollar was C$1.xxxx. 1/.7795
Winnipeg ICE Futures Canada dollars per tonne.
Name / Contract Last Change % Change
Canola May 19 439.10s +1.30 +0.30%
Canola Jul 19 447.90s +1.80 +0.40%
Canola Nov 19 460.40s +1.40 +0.31%
Canola Jan 20 467.20s +1.40 +0.30%
Canola Mar 20 473.40s +1.80 +0.38%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.
Chicago
Soybean May 19 855-2s -6-6 -0.78%
Soybean Jul 19 868-6s -6-6 -0.77%
Soybean Aug 19 874-6s -6-6 -0.77%
Soybean Sep 19 880-0s -6-6 -0.76%
Soybean Nov 19 889-4s -6-6 -0.75%
Soybean Meal May 19 300.4s -0.6 -0.20%
Soybean Meal Jul 19 304.0s -0.5 -0.16%
Soybean Meal Aug 19 304.8s -0.8 -0.26%
Soybean Oil May 19 27.92s -0.14 -0.50%
Soybean Oil Jul 19 28.22s -0.15 -0.53%
Soybean Oil Aug 19 28.36s -0.15 -0.53%
Corn May 19 346-6s -4-4 -1.28%
Corn Jul 19 356-0s -4-2 -1.18%
Corn Sep 19 364-2s -4-0 -1.09%
Corn Dec 19 376-0s -3-6 -0.99%
Corn Mar 20 391-0s -3-4 -0.89%
Oats May 19 297-4s +3-0 +1.02%
Oats Jul 19 284-0s +1-2 +0.44%
Oats Sep 19 267-6s -0-2 -0.09%
Oats Dec 19 258-0s +0-2 +0.10%
Oats Mar 20 248-4s -1-6 -0.70%
Wheat May 19 432-2s -6-4 -1.48%
Wheat Jul 19 438-4s -6-4 -1.46%
Wheat Sep 19 446-0s -5-6 -1.27%
Wheat Dec 19 462-6s -5-4 -1.17%
Wheat Mar 20 479-4s -5-4 -1.13%
Minneapolis
Spring Wheat May 19 503-2s -8-0 -1.56%
Spring Wheat Jul 19 511-6s -7-6 -1.49%
Spring Wheat Sep 19 521-0s -7-4 -1.42%
Spring Wheat Dec 19 536-4s -6-4 -1.20%
Spring Wheat Mar 20 551-4s -6-2 -1.12%
Kansas City
Hard Red Wheat May 19 404-4s -10-0 -2.41%
Hard Red Wheat Jul 19 411-4s -9-4 -2.26%
Hard Red Wheat Sep 19 421-0s -10-0 -2.32%
Hard Red Wheat Dec 19 442-4s -9-6 -2.16%
Hard Red Wheat Mar 20 464-0s -9-6 -2.06%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Apr 19 126.775s -1.550 -1.21%
Live Cattle Jun 19 118.350s -2.775 -2.29%
Live Cattle Aug 19 115.825s -2.375 -2.01%
Feeder Cattle May 19 146.525s -3.100 -2.07%
Feeder Cattle Aug 19 156.725s -2.975 -1.86%
Feeder Cattle Sep 19 157.875s -2.975 -1.85%
Lean Hogs May 19 89.175s +1.350 +1.54%
Lean Hogs Jun 19 92.775s +0.400 +0.43%
Lean Hogs Jul 19 97.650s +0.450 +0.46%
