WINNIPEG — The ICE Futures canola market moved upwards yet again on Wednesday for its longest rally since April of last year, primarily due to dry conditions on the Prairies and strength in vegetable oils.
Chicago soyoil gained two United States cent per pound, while European rapeseed also made gains. Malaysian palm oil was not traded due to a holiday. Crude oil was lower despite upcoming supply cuts from Russia.
At mid-afternoon, the Canadian dollar gained one-tenth of a U.S. cent compared to Tuesday’s close. West Coast port workers in B.C. are back on the picket line Wednesday after rejecting a federally-mediated tentative agreement the night before. Federal Labour Minister Seamus O’Regan claims that the strike is illegal.
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About 37,185 canola contracts were traded on Wednesday, which compares with Tuesday when 27,725 contracts changed hands. Spreading accounted for 17,556 of the contracts traded.
The September CORN contract hit its highest price since June 28, surpassing the US$5.50 per bushel mark before closing below it on the Chicago Board of Trade (CBOT) on Wednesday.
Western Kansas is expected to see up to 100 millimetres of rain over the next week, with 40 to 50 mm in Missouri and Kentucky. However, the Dakotas, western Minnesota and most of Illinois and Iowa will miss out.
The United States Energy Information Administration reported 1.07 million barrels of ethanol produced per day for the week ended July 14, a new weekly high for this year. Ethanol stocks increased by 508,000 barrels to 23.166 million.
Safras and Mercado estimated Brazil’s 2023-24 corn crop to be 137.4 million tonnes, down two million from the previous year due to fewer acres. Brazil is also projected to export 6.8 million tonnes in July, compared to 5.63 million the year before, according to ANEC.
Algeria has put out a tender for 240,000 tonnes of South American corn.
August SOYBEANS settled on the negative side of unchanged, but deferreds were up more than 13 U.S. cents per bushel in anticipation of dry weather in the U.S. next week.
While recent rains helped maintain or improve the overall condition of the U.S. soybean crop, the U.S. Department of Agriculture (USDA) is likely to reduce its record yield forecast when it releases new estimates in August.
Safras and Mercado also estimated Brazil’s 2023-24 soybean crop, projecting 163.2 million tonnes, up 4.5 per cent from the record-breaking amount this year due to increased acreage. Brazil is also projected to export 8.8 million tonnes of soybeans in July, more than the seven million shipped out last July but lower than ANEC’s previous estimate of 10.4 million.
Chicago WHEAT prices are not only gaining momentum from dry conditions in the U.S. Midwest, but also from Russia’s seeming unwillingness to re-enter into the Black Sea Grain Initiative.
Russia continued with missile and drone attacks on the Port of Odessa in Ukraine overnight. Its defence ministry also said that it will consider any vessel sailing into Ukraine as weapons and munition traffic and will respond accordingly.
Poland, Romania, Bulgaria, Hungary and Slovakia have asked the European Union to extend a ban on Ukrainian grain imports used within their borders past Sept. 15. Germany and Croatia said it will help Ukraine find alternate paths to ship out grain.
UkrAgroConsult raised its estimates for Russian new crop wheat exports by two million tonnes to 47 million and old crop exports by 4.8 million tonnes to 46.8 million.
