By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 2 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were stronger on Wednesday, after turning around from earlier losses.
With Russia stating it will re-enter the Black Sea export agreement, there was a general sell-off in the grain markets. However, canola and other oilseeds fended off the pressure to turned around and climb higher.
The Canadian oilseed received spillover from gains in Chicago soybeans and especially soyoil, as well as Malaysian palm oil. There was pressure from declines in European rapeseed and a small slip in Chicago soymeal. Upticks in global crude oil prices lent support to vegetable oils.
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Canadian Financial Close: Loonie higher, TSX sets new record
Glacier FarmMedia – The Canadian dollar gained some ground on Friday and will end the week on a high note….
The Canadian dollar also turned around today and by mid-afternoon the loonie nudged up to 73.52 U.S. cents, compared to Tuesday’s close of 73.45.
There were 53,633 contracts traded on Wednesday, which compares with Tuesday when 46,640 contracts changed hands. Spreading accounted for 48,520 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 894.80 up 10.60
Mar 897.10 up 11.00
May 901.90 up 10.10
Jul 903.90 up 9.50
WHEAT futures at the Chicago Board of Trade (CBOT) plummeted on Wednesday after Russia announced it was returning to the Black Sea export deal, which led to a sell-off in the grain markets.
Russia initially pulled out of the agreement on Sunday, after it accused Ukraine of launching drone strikes on its warships at Sevastopol. Despite the Russian withdrawal, grain vessels continued to transit the safe corridors in light of the increased tensions. Talks between Russia and Turkey, along with United Nations involvement, led to Ukraine agreeing not to use the corridors for any future attacks.
Ukraine reported 13.4 million tonnes of grain were exported as of Nov. 2. That’s a drop of 32 per cent compared to this time last year. The exports included 5.1 million tonnes of wheat, with those movements falling 60 per cent from a year ago.
Argentina announced it will extend wheat export licenses for up to 360 days after there were reports the licenses would be limited.
CORN futures were lower on Wednesday due to pressure from wheat.
The USDA placed corn for ethanol at 383.1 million bushels in September, the lowest amount for the month recorded. The trade was looking for about 394 million bushels.
Ukraine said its corn exports were 7.1 million tonnes as of Nov. 2, up three-fold from a year ago.
StoneX increased its forecast for Brazil corn production in 2022/23 by 2.9 per cent at 129.9 million tonnes.
SOYBEAN futures were higher on Wednesday, along with sharp increases in soyoil while soymeal dipped a little.
The USDA issued its fats and oils report on Nov. 1, showing 167.99 million bushels of soybeans were crushed in September. Besides being in line with trade expectations, the crush was 2.9 per cent more than the previous September. Soyoil stocks were also within market projections at a tiny bit under two billion pounds.
Outgoing Brazilian president Jair Bolsonaro spoke publicly for the first time on Tuesday following his failed re-election bid. While Bolsonaro did not explicitly concede defeat to Luiz Inacio Lula da Silva, his far-right political allies promised a smooth transition of power by the time Lula is sworn in on Jan. 1. Also, Bolsonaro called on the scores of roadblocks throughout Brazil to be peaceful.
Meanwhile, Lula said his incoming government will fight against further deforestation of the Brazil rainforest, thereby limiting the expansion of new farmland.
