By Glen Hallick, MarketsFarm
WINNIPEG, Dec 28 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures turned lower in the last hour of trading on Wednesday. Pressure from weaker comparable oils erased the Canadian oilseed’s earlier gains.
While there was support from strong upticks in Chicago soybeans and soymeal, losses in soyoil, European rapeseed and Malaysian palm oil proved to be too much for canola. Also, declines in global crude oil prices weighed on vegetable oils.
Nevertheless, one analyst said it’s possible that the nearby March canola contract could make a run at C$900 per tonne in the near future, especially with the loosening of COVID-19 restrictions in China and strong exports out of Vancouver.
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The Canadian dollar was slightly higher at mid-afternoon Wednesday, with the loonie at 73.58 U.S. cents, compared to Friday’s close of 73.51.
There were 24,246 contracts traded on Wednesday, which compares with Friday when 11,665 contracts changed hands. Spreading accounted for 11,654 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Jan 859.00 dn 8.50 Mar 864.00 dn 0.70 May 861.50 dn 0.50 Jul 859.60 dn 1.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Wednesday, as was soymeal but soyoil pulled back.
The United States Department of Agriculture (USDA) released its export inspections on Tuesday, which showed outbound movements of soybeans were 1.75 million tonnes for the week ended Dec. 22. That’s down 10.7 per cent from the previous week. The year-to-date exports reached 27.13 million tonnes, compared to 29.18 million this time last year.
ANEC estimated Brazil’s December soybean exports at nearly 1.72 million tonnes.
Malaysia said it will maintain its capped export tax on palm at eight per cent through January.
Indonesia is expected to announce a commodity export ban, which is to include palm oil.
CORN futures were higher on Wednesday, with spillover from the wheat complex.
The USDA said overseas corn exports came to 856,606 tonnes, up 3.6 per cent from a week ago. At 8.84 million tonnes, the year-to-date remained well back of last year at 12.31 million.
ANEC pegged Brazil’s December corn exports at 6.19 million tonnes.
Farmers in Argentina were quickly losing their window to plant corn, as drought has stalled a good part of the seeding.
Ukraine reported this year’s corn exports of 12.2 million tonnes dropped 18 per cent compared to a year ago.
WHEAT futures were mostly higher on Wednesday, with gains in Chicago and Kansas City but a slight loss in Minneapolis.
Wheat export inspections tallied 280,554 tonnes, down 7.7 per cent from the previous week. The year-to date remained relatively close to last year’s figure, 11.72 million tonnes for 2022/23 compared to 11.97 million for 2021/22.
The wheat harvest has begun in Australia, with a record bounty widely expected.
Ukraine estimated its wheat exports of 8.2 million tonnes tumbled 48 per cent from a year ago. Overall, total grain exports were down 30 per cent due to the Russian invasion.
Despite Russia claiming to want peace talks, it continued to launch missile and drone strikes against Ukraine.
Egypt purchased 80,000 tonnes of wheat from Russia.
