By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures gained some traction on Wednesday, correcting higher after two sessions of losses.
Good weather across the Prairies has continued to weigh on values. An analyst said the rains in August averted what was likely a below average canola crop.
The analyst also said it’s quite unlikely that canola will be able to sustain a significant rally.
Trading today also overcame pressure from China’s tariffs on Canadian canola seed, oil and meal.
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Support for canola came from gains in Chicago soybeans and soymeal, but soyoil was weaker. There were small upticks in Malaysian palm oil while European rapeseed was mixed. Increases in crude oil spilled over into the vegetable oils.
The Canadian dollar was easing back on Wednesday afternoon with the loonie at 72.11 U.S. cents compared to Tuesday’s close of 72.19.
There were 39,993 contracts traded on Wednesday, compared to 38,790 on Tuesday. Spreading accounted for 23,454 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change
Canola Nov 649.10 up 3.10
Jan 660.60 up 3.10
Mar 671.10 up 3.70
May 680.60 up 4.50
SOYBEAN futures at the Chicago Board of Trade were higher on Wednesday, getting spillover from the rally in soymeal.
Day two of the Pro Farmer crop tour saw a difference in soybean yields in Indiana and Nebraska. The soybean pod count in Indiana dropped 2.3 per cent from last year at 1,376.59 per square yard. In Nebraska, the count jumped 15 per cent from a year ago at 1,348.31.
The United States Department of Agriculture is set to release its export sales report on Thursday. For the week ended Aug. 14, old crop soybeans are projected to be between 300,000 tonnes in net reductions to 300,000 in net sales. Those for new crop are projected to be 400,000 to one million tonnes.
Also, soymeal estimates range from net reductions of 50,000 tonnes to net sales of 450,000 tonnes. Those for soyoil are net reductions of 10,000 tonnes to 15,000 tonnes in net sales.
China reported its soybean July imports from Brazil were 10.39 million tonnes, up 13.9 per cent from a year ago. Those imports from the United States dropped 11.5 per cent from July 2024 at less than 421,000 tonnes.
Argentina’s soyoil exports in July of 660,000 tonnes was the highest in eight months. That brought the year-to-date to four million tonnes, which is 200,000 more than a year ago.
CORN futures were a pinch higher on Wednesday, pulled up by spillover from soybeans and wheat.
The crop tour found modest increases in corn yields. Those for Indiana improved 3.4 per cent from last year at 187.54 bushels per acre and those in Nebraska rose 3.6 per cent at 179.50. However, some in the trade suggested the yields so far should have been higher.
The USDA announced two private sales of 2025/26 corn. One is for 100,000 tonnes to Colombia and the other is for 125,741 tonnes to Mexico.
For tomorrow’s export sales report, old crop corn was projected to be from 100,000 tonnes in net reductions to net sales of 300,000 tonnes. New crop sales are to be between 900,000 and two million tonnes.
The U.S. Energy Information Administration reported ethanol production averaged 1.072 million barrels per day for the week ended Aug. 15. That’s down 21,000 BPD. Ethanol stocks rose 39,000 barrels at 22.69 million.
WHEAT futures improved on Wednesday on prospects of good export sales.
U.S. wheat export sales are projected to be 500,000 to 800,000 tonnes
Syria issued a tender for 200,000 tonnes of wheat.
