WINNIPEG — The ICE Futures canola market rebounded slightly on Wednesday after yesterday’s losses, due to strength in comparable oils.
Both Chicago soyoil and Malaysian palm oil were up, while European rapeseed was mostly higher. Crude oil also rose despite growing United States stockpiles and indicators that the Federal Reserve may continue to raise their key interest rates.
At mid-afternoon, the Canadian dollar was up less than one-tenth of a U.S. cent compared to Tuesday’s close.
About 27,897 canola contracts were traded on Wednesday, which compares with Tuesday when 33,238 contracts changed hands. Spreading accounted for 16,646 of the contracts traded.
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After suffering losses on Tuesday, the Chicago Board of Trade was mostly in positive territory on Wednesday.
CORN had its biggest gain since Feb. 10 on Wednesday, partially recovering from the previous day’s downturn.
Weekly data from the U.S. Energy Information Administration (EIA) showed that 1.003 million barrels of ethanol were produced per day during the week ended Feb. 24, down 26,000 barrels per day from the week prior. Due to exports, ethanol stocks totalled 24.775 million barrels, a three-week low.
Three South Korean firms have bought a combined 195,000 tonnes of corn.
Ag analyst Dr. Michael Cordonnier cut his estimate for Argentine corn production by two million tonnes to 41 million.
SOYBEANS ended a string of five straight sessions in the red.
Cordonnier also cut his estimate for Argentina’s soybean crop by two million tonnes to 32 million, while the U.S. Department of Agriculture’s (USDA) current estimate is lower.
China cancelled a purchase of 500,000 tonnes of Argentine soybeans and replaced them with cheaper Brazilian exports, according to trade reports. Brazil’s soybean harvest is currently one-third complete.
The trade is expecting the USDA’s Fats and Oils Report, set for release today, to report an average 189.6 million bushel soybean crush for January. The average estimate for soyoil stocks is 2.368 billion pounds.
Chicago WHEAT and Kansas City hard red wheat made small gains, while Minneapolis spring wheat was negative for the eighth straight day.
The Black Sea Grain Initiative is set to expire on March 19, despite Ukraine seeking a one-year extension to the agreement. However, Russia’s Foreign Ministry said that it does not intend to stay on unless its grain exports see benefits. Inspection delays for cargoes in Istanbul have been an issue due to demurrage costs.
India’s wheat crop is expected to see some damage due to hot, dry weather over the next two weeks, while Australia’s wheat crop may face dry weather from El Niño later this year.
Taiwan bought nearly 49,000 tonnes of U.S. milling wheat this week.
