By Glen Hallick, MarketsFarm
WINNIPEG, June 15 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were lower on Wednesday, continuing on with losses that began during the overnight session. However, prices finished well away from their lows.
A downturn in global crude oil prices put pressures on vegetable oils. European rapeseed and Malaysian palm oil, as well as Chicago soybeans and soyoil fell back. There were gains in soymeal.
A trader suggested seasonal pressure has not been as great this spring. Even though North American crops appear to be off to a good start, tight supplies, the war in Ukraine and weather issues are among the factors underpinning values.
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At 87 per cent complete, seeding in Manitoba has pretty much wrapped up. Repeated rainfall slowed planting and will result in unseeded acres.
The Canadian dollar was relatively steady at mid-afternoon as the United States dollar lost ground. The loonie was at 77.33 U.S. cents, compared to Tuesday’s close of 77.28.
There were 21,825 contracts traded on Wednesday, which compares with Tuesday when 21,711 contracts changed hands. Spreading accounted for 15,022 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 1,083.60 dn 12.70
Nov 1,037.00 dn 7.40
Jan 1,042.50 dn 7.10
Mar 1,044.80 dn 6.30
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, as the United States Federal Reserve’s hike in interest rates today added pressure on the markets.
The U.S. National Oilseed Processors’ Association (NOPA) reported the May soybean crush came to 171.07 million bushels – setting a new May record. Soyoil stocks were 1.77 billion pounds.
The U.S. Department of Agriculture (USDA) announced the cancellation of a private sale for 100,000 tonnes of old crop soybeans to unknown destinations.
Argentina will increase its biodiesel blend requirement to 12.5 per cent for the next two months as of today.
Cargill announced it will shutter its rapeseed plant in Hull, England. The plant’s daily production is currently about 7,500 tonnes.
CORN futures were mixed on Wednesday, with a gain in the nearby July contract and losses afterwards.
Hot and dry weather has been forecast for the U.S. Corn Belt for the next two weeks.
The U.S. Energy Information Administration (EIA) reported an average of 1.06 million barrels per day (BPD) of ethanol produced during the week ended June 10. That’s an increase of approximately 21,000 BPD. Stocks declines by 439,000 barrels, leaving them at slightly below 23.2 million.
China said its hog population as of April 30 stood at 41.77 million head, down 4.3 per cent from a year ago and reducing its feed demand.
WHEAT futures were lower on Wednesday, also with the Fed rate increase contributing to the downturn.
Hot and dry conditions across the U.S. Southern Plains, will accelerate the winter wheat harvest.
Ukraine said 5.9 million acres of winter crops won’t be harvested this year due to the war.
IKAR pegged Russia’s 2022/23 wheat crop at 87 million tonnes, for a 2.4 per cent increase over the consultancy’s previous estimate.
India and Indonesia are said to working on a deal to trade wheat for palm oil. Meanwhile, the United Arab Emirates has stopped its wheat imports from India for four months due to global trade disruptions.
Kazakhstan extended wheat and flour export quotas to Sept. 30. Wheat is limited to 550,000 tonnes and flour at 370,000 tonnes.
Argentina said it will limit its wheat exports to 10 million tonnes down from last year’s 14.5 million.
