By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 15 (MarketsFarm) – Intercontinental Exchange canola futures continued with its gains on Wednesday, building those from Tuesday.
An analyst stated the spec funds have been largely behind the rise in canola prices, as they hold a record short position.
Support for the Canadian oilseed also came from increases in Chicago soyoil and Malaysian palm oil. Losses in European rapeseed along with Chicago soybeans and soyoil tried to cap further gains in canola. Lower global crude prices put pressure on the vegetable oils.
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Canola crush margins climbed to just short of C$263 per tonne above futures.
The Canadian dollar was higher at mid-afternoon Wednesday with the loonie at 73.10 U.S. cents compared to Tuesday’s close of 72.86.
There were 41,764 contracts traded on Wednesday, which compares with Tuesday when 58,832 contracts changed hands. Spreading accounted for 24,552 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change
Canola Jan 719.50 up 5.60 Mar 725.10 up 4.80 May 728.50 up 5.10 Jul 731.40 up 4.80
SOYBEAN futures at the Chicago Board of Trade were lower on Wednesday, but there were upticks in soyoil.
The markets were keeping an eye on the San Francisco meeting between United States President Joe Biden and Chinese President Xi Jinping on Wednesday in hopes of more agricultural export sales to China.
The U.S. National Oilseed Processors Association reported an all-time record for any month of 189.8 million bushels of soybeans crushed in October. Trade guesses ahead of the report were 180 million to 193.2 million bushels. Soyoil stocks came in at 1.10 billion pounds versus projections of 1.19 billion.
The Brazil weather forecast has called for hot and dry conditions in the country’s central and northern regions.
CORN futures were lower as well Wednesday on a lack of sufficient fresh news.
Above average temperatures were forecast to continue for most of the U.S. corn and soybean growing areas, allowing for harvesting to wrap up.
The U.S. Department of Agriculture reported a private sale of 124,000 tonnes of old crop corn to Japan.
WHEAT futures were mixed on Wednesday, with winter wheat steady to lower and small gains for spring wheat.
Ongoing dryness in Kansas, Oklahoma and Texas has raised concerns for their winter wheat crops.
Insurers Lloyd’s of London and brokerage Marsh reached an agreement with Ukrainian state banks to reduce claims costs for vessels damaged by Russian attacks through the country’s Black Sea corridor. Meanwhile, grain exports out of the port of Odesa were reduced as repair work to its railroads pressed ahead.
France bumped up its call on soft wheat exports outside of the European Union from 9.8 million tonnes to now 10.1 million.
Jordan issued a tender for 120,000 tonnes of wheat.
