WINNIPEG — The ICE Futures canola market was in decline on Wednesday despite mixed sentiment in comparable oils.
Chicago soyoil, along with Malaysian palm oil were both higher, while European rapeseed was lower. Crude oil was also lower, despite optimism over rebounding Chinese demand and a report from the International Energy Agency (IEA) predicting record demand in 2023.
At mid-afternoon, the Canadian dollar was down one-half of a United States cent compared to Tuesday’s close.
About 37,480 canola contracts were traded on Wednesday, which compares with Tuesday when 30,170 contracts changed hands. Spreading accounted for 25,856 of the contracts traded.
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After the March CORN contract hit its highest price since November on Tuesday, it underwent a correction on Wednesday.
The Argentine corn crop is entering a critical period in development with pollination reported for 17 per cent of its crop due to drought, compared to 33 per cent last year.
Light rain is expected for corn-growing areas of Argentina this week, but it will not be enough to reverse growing conditions.
There is still slow demand for U.S. corn exports, while the Chinese government reported that corn imports in 2022 were down 27 per cent from the previous year at 20.6 million tonnes.
On Tuesday, the March SOYBEAN contract reached its highest price since June, but it also underwent a correction on Wednesday.
While projections for Argentina’s soybean crop keeps getting cut, Brazil is still slated for a record crop.
Chinese Dalian soybean futures traded at near seven-month highs earlier this week.
South Korea is looking for 19,000 tonnes of non-GMO food quality soybeans, while the Philippines are searching for 45,000 tonnes of soymeal.
All three major U.S. WHEAT varieties also took a tumble on Wednesday.
Russian President Vladimir Putin suggested that holding wheat stocks domestically would be more beneficial than generating export revenue, raising signs that the country may implement an export quota. Russia is currently the most affordable origin on the market.
Reports from Australia suggest that the worst fears over the quality of its record wheat crop will not be realized.
Precipitation is in the forecast over the next two weeks in the U.S. Southern Plains, but it may not improve conditions for the U.S. hard red winter wheat crop.
