By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 20 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures continued higher on Wednesday, getting more spillover from gains in other edible oils.
The Chicago soy complex saw soyoil push well over two cents per bushel in the nearby contracts, while soybeans had double digit gains and soymeal was up moderately. The rally in European rapeseed carried on and there were increases in Malaysian palm oil.
An analyst said it’s possible that canola could break through the C$1,000 per tonne level again, especially with tight supplies and low production off of the Prairies.
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At mid-afternoon the Canadian dollar was higher with the loonie at 81.23 U.S. cents, compared to Tuesday’s close of 80.93.
There were 36,030 contracts traded on Wednesday, which compares with Tuesday when 36,426 contracts changed hands. Spreading accounted for 23,748 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 949.30 up 11.50
Jan 944.60 up 12.40
Mar 927.30 up 9.50
May 899.90 up 7.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Wednesday, due to the slow pace of farmer selling.
IHS Markit estimated United States soybean acres will nudge higher in 2022/23, from 87.24 million to 87.34 million. The consultancy placed yields at 51.5 bushels per acre with production to come to 121.25 million tonnes.
The United States Department of Agriculture (USDA) attaché in Brazil pegged that country’s 2021/22 soybean production to reach 145 million tonnes, versus the USDA official call of 144 million. The attaché projected Brazil’s soybean exports to rise 7.9 per cent at 92 million.
China reported its soybean imports from Brazil in September, were about 5.94 million tonnes, down 18 per cent from the previous September.
The European Union said its soybean imports as of Oct. 17 stood at 3.62 million, for a drop of 15 per cent compared to the same time last year.
CORN futures were higher on Wednesday, catching spillover from soybeans and wheat.
The U.S. Energy Information Administration (EIA) reported ethanol production increased 6.2 per cent for the week ended Oct. 15, bringing it to just under 1.1 million barrels per day. That brought production to its third highest level on record. Ethanol stocks gained 1.2 per cent at 20.1 million barrels.
Reports said that urea prices have jumped 26 per cent in the past month, averaging US$719 per ton. Potash climbed 19 per cent at US$710/ton, urea ammonium nitrate (UAN) rose 16 per cent at US$442/ton and anhydrous was up 15 per cent at US$873/ton.
IHS Markit trimmed its call on 2022/23 U.S. corn acres by one per cent at 92.37 million. The consultancy estimated yields at 181 bu/ac. with production projected to be 386.43 million tonnes.
WHEAT futures were stronger on Wednesday, on tight global supplies of good quality protein wheat.
IHS Markit pegged U.S. winter wheat acres for 2022/23 at 34.15 million, up 1.5 per cent from the previous year. The consultancy forecast spring wheat acres to rise by 11.2 per cent at 12.7 million.
The USDA attaché in Australia estimated that country’s 2021/22 wheat production at 31.5 million tonnes.
China reported 26 per cent of its winter wheat has been planted, only one point behind last year’s pace.
