WINNIPEG – Intercontinental Exchange (ICE) canola futures finished lower on Wednesday as gains in the Chicago soy complex faded.
While the soybeans ended the day mixed, soymeal was lower, and soyoil pulled back from its earlier highs but remained positive.
Support came from upticks in European rapeseed and Malaysian palm oil. Increases in global crude oil prices spilled over into the vegetable oils.
Agriculture and Agri-Food Canada (AAFC) trimmed its call on 2023/24 canola production by 100,000 tonnes at 18.4 million. AAFC slashed its forecast on ending stocks by 43 per cent at 600,000 tonnes.
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Manitoba reported seeding progress reached 62 per cent, advancing 37 points on the week as farmers try to catch up after a late start. Canola seeding was at 40 per cent finished.
The political turmoil over the United States government’s debt ceiling weighed on the North American commodities, including the ICE canola futures.
The Canadian dollar was weaker at mid-afternoon Wednesday, with the loonie at 73.61 U.S. cents, compared to Tuesday’s close of 74.05.
There were 41,040 contracts traded on Wednesday, which compares with Tuesday when 43,584 contracts changed hands. Spreading accounted for 30,222 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 698.10 dn 3.50 Nov 660.60 dn 4.40 Jan 664.00 dn 4.90 Mar 668.80 dn 4.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were mixed on Wednesday with gains in the old crop contracts while the new crop positions were steady to lower.
Ahead of Thursday’s export sales report from the United States Department of Agriculture (USDA), trade expectations forecast old crop soybean sales of net reductions of 50,000 tonnes to sales of 300,000 tonnes. New crop sales were pegged at 100,000 to 675,000 tonnes.
Old and new crop soymeal is expected to be 150,000 to 550,000 tonnes, of which no more than 150,000 tonnes of new crop. Soyoil is projected to be less than 10,000 tonnes.
Brazil export agency ANEC said Brazil’s soybean exports for May are to reach 15.9 million tonnes with soymeal exports of 2.5 million.
The Buenos Aires Grain Exchange (BAGE) forecast that nearly 13 per cent Argentina’s soybean acres could be abandoned. Yields are said to be 22.6 bushels per acre.
The European Union reported its soybean imports reached 11.36 million tonnes as of May 21.
CORN futures were higher on Wednesday due to dry weather for the U.S. Corn Belt.
The U.S. Energy Information Administration reported ethanol production for the week ended May 19, average 983,000 barrels per day (BPD), for a dip of 4,000 BPD. Ethanol stocks were down 1.15 million barrels at 22.04 million.
U.S. corn export sales are projected to be between 500,000 tonnes of net reductions to sales of 400,000 tonnes of old crop. New crop sales are to be around 300,000 tonnes.
Agroconsult pegged Brazil’s safrinha corn crop at 102.4 million tonnes, for a 11 per cent increase over last year’s second harvest. CONAB reported harvest was just underway at 0.2 per cent complete.
ANEC revised its estimate on Brazil’s corn exports for May from 571,000 tonnes down to 387,000.
Ukraine said its 2022/23 corn exports were up 19 per cent year over year at 26.4 million tonnes. Total grain exports from Ukraine were 44.6 million, down 4.6 per cent.
WHEAT futures were weaker on Wednesday due to a lack of demand.
Ahead of the USDA export sales report, old crop wheat sales ranged from 75,000 in net reductions to 100,000 tonnes in sales. New crop sales are projected to be 200,000 tonnes to 500,000 tonnes.
Reuters reported that U.S. wheat purchases from the EU now total 210,000 tonnes, split between five loads from Poland and two from Germany.
The wheat crops in Europe, Ukraine and Russia are in good shape, according to a report.
The wheat harvest is underway in China, with a bumper crop expected. The USDA projected China to reap 140 million tonnes in 2023/24, up from the 137.72 million in 2022/23.
In the May report from Agriculture and Agri-Food Canada, total 2023/24 wheat production was slated at 35.75 million tonnes compared to the 33.82 million the year before. Ending stocks are projected to increase from 3.98 million tonnes in 2022/2023 to 5.80 million in 2023/2024.
Ukraine said its old crop wheat exports came to 15.3 million tonnes, down 18 per cent from the previous year.
