By Glen Hallick, MarketsFarm
WINNIPEG, July 26 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished higher on Wednesday, despite losses in comparable oils.
A trader speculated that the spreaders were responsible for today’s upswing in canola, by selling their soyoil and acquiring the Canadian oilseed.
The trader said the market is very likely to turn choppy as it waits for the canola to finish their development.
Rain across much of the Prairies continued to benefit canola and other crops, although some areas of the region missed the precipitations while other parts received too much.
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There were sharp losses in Chicago soyoil and modest declines in European rapeseed and Malaysian palm oil. Chicago soybeans were mixed while soymeal advanced. Global crude oil prices slipped back a little, putting some pressure on the vegetable oils.
The Canadian dollar was down slightly at mid-afternoon Wednesday, as the loonie slipped to 75.74 U.S. cents, compared to Tuesday’s close of 75.85.
There were 27,912 contracts traded on Wednesday, which compares with Tuesday when 32,517 contracts changed hands. Spreading accounted for 12,780 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 830.80 up 6.80 Jan 833.10 up 6.60 Mar 830.30 up 6.30 May 821.40 up 4.00
SOYBEAN futures at the Chicago Board of Trade were mixed on Wednesday, with large gains in the old crop months, while the new crop contracts were steady to lower.
The United States Department of Agriculture announced two private sales of new crop soybeans to unknown destinations. One for 272,000 tonnes and other is for 229,000 tonnes.
Ahead of the USDA weekly export sales report, the markets projected soybean sales at 50,000 to 400,000 tonnes for old crop and 300,000 to 800,000 tonnes for new crop. Soymeal was projected to be 150,000 to 600,000 tonnes and soyoil is expected to be under 20,000 tonnes.
The drought in Argentina was so severe in 2023, that the International Monetary Fund projected the country’s economy to shrink 2.5 per cent. The soybean crop was particular hard hit, with a harvest of about 21 million tonnes versus projections at the beginning of the crop year of 47 million.
CORN futures were weaker on Wednesday, due to favourable weather conditions.
The National Oceanic and Atmosphere Administration six-to-10 and its eight-to-14-day forecasts called for above average temperatures for the western half of the U.S. with increased chances of rain.
Export sales of U.S. corn are projected to be 100,000 to 500,000 tonnes for old crop and 200,000 to 500,000 tonnes for new crop.
The U.S. Energy Information Administration reported ethanol production for the week ended July 21 averaged 1.09 million barrels per day, up 24,000 per day. Soyoil stocks nudged up 62,000 barrels at 23.23 million.
AgRural placed the second Brazil corn harvest at 47 per cent complete. That up 11 points from last week, but well short of the 62 per cent done this time last year.
WHEAT futures fell sharply on Wednesday, as concerns over the war in Ukraine subsided.
Day One of the North Dakota crop tour brought in estimates of 48.1 bushels per acre, lower than last year’s 48.9. The tour continued Wednesday and the final results are set to be released on Thursday.
Trade expectations for export sales put wheat at 150,000 to 400,000 tonnes.
Agritel pegged the 2023/24 soft wheat crop in France at 34.82 million tonnes, up 3.3 per cent from last year.
SovEcon placed the Russian wheat harvest at 14 per cent complete.
With the demise of the Black Sea Grain Initiative, several African leaders are to meet with Russia President Vladimir Putin to discuss grain supplies.
Meanwhile, UkrAgroConsult estimated the best Ukraine’s ports can ship out grain following Russia’s recent attacks is about five million tonnes per month.
