By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 11 (MarketsFarm) – Despite decent increases in the morning, Intercontinental Exchange (ICE) canola futures closed lower on Wednesday.
During the course of today’s session, losses developed in Chicago soyoil with additional pressure coming for declines in Malaysian palm oil. Support was derived from advances in Chicago soybeans and soymeal, as well as European rapeseed. Global crude oil prices were making good gains, with spillover going into vegetable oils.
Crush margins continued to be quite strong for the Canadian oilseed, but they are well back from recent record levels.
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An analyst said that canola has been rangebound at C$800 to C$900 per tonne for upwards of seven months and is very likely to remain so for at least a couple more months.
The Canadian dollar was unchanged at mid-afternoon Wednesday, with the loonie at 74.51 U.S. cents.
There were 37,089 contracts traded on Wednesday, which compares with Tuesday when 37,144 contracts changed hands. Spreading accounted for 20,308 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Mar 831.80 dn 9.80 May 828.00 dn 10.20 Jul 828.90 dn 9.90 Nov 802.80 dn 7.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Wednesday, but soyoil fell back near the end of the session.
Ahead of the flurry of reports from the United States Department of Agriculture on Thursday at 11 am CST, the trade projected an increase to soybean ending stocks and a dip in quarterly stocks. Also, the markets expect a small increase in Brazil soybean production, but a significant reduction in that for Argentina.
The USDA reported a private sale of 124,000 tonnes of old crop soybeans to unknown destinations.
The Buenos Aires Grain Exchange said it expects the drought in Argentina to break in the coming weeks, with moisture levels returning to normal sometime in March.
WHEAT futures were higher on Wednesday, with Chicago and Kansas City moving above yesterday’s lows.
The carryover for U.S. wheat is expected to increase in tomorrow’s supply and demand estimates. Quarterly stocks are to shrink to their lowest level since 2007. Winter wheat plantings are to expand to 34.49 million acres, of which 69 per cent are to be hard red, 20 per cent soft red and white to be about 10.5 per cent.
A very severe drought continued to keep Tunisia in its grasp, with many of the North African country’s dams down to 25 per cent of their capacity, with some down to 10 per cent.
In international purchases, Egypt acquired 60,000 tonnes of wheat from Russia, while South Korean bought 50,000 tonnes from the U.S. Japan issued a tender for 89,700 tonnes of wheat from the U.S. and Canada, while Taiwan is looking for 45,200 tonnes of U.S. wheat.
CORN futures were slightly higher on Wednesday, due to a lack of fresh news.
The U.S. Energy Information Administration said ethanol production for the week ended Jan. 6 averaged 943,000 barrels per day. That’s up 10.5 per cent from the previous week. Ethanol stocks lost 644,000 barrels at 23.8 million.
The carryout for U.S. corn is expected to bump up while quarterly stocks are to fall to their lowest levels since 2013.
The trade projected the USDA to nudge up its call on Brazil corn production and chop a good part from its estimate for Argentina corn production.
ANEC reported that Brazil is expected to export more than one million tonnes of corn to China during January.
