By Glen Hallick, MarketsFarm
WINNIPEG, May 3 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished higher on Wednesday, after starting the session to the downside.
Support for canola came from upticks in Chicago soybeans and soyoil, while pressure came from soymeal. Losses in European rapeseed also weighed on values while the Malaysian palm oil market was closed for another holiday. Sharp decreases in global crude oil prices also pressured the vegetable oils.
With the better-than-expected weather across the Canadian Prairies, farmers in most parts of the region will be getting an earlier start to spring planting than what they anticipated.
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The Canadian dollar was relatively steady on Wednesday. The loonie closed at US$0.7250 or US$1=C$1.3794, compared to US$0.7252 or US$1=C$1.3789…
The Canadian dollar was higher at mid-afternoon Wednesday, with the loonie at 73.54 U.S. cents, compared to Tuesday’s close of 73.43.
There were 25,788 contracts traded on Wednesday, which compares with Tuesday when 26,256 contracts changed hands. Spreading accounted for 11,010 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Jul 715.90 up 6.50 Nov 689.90 up 6.50 Jan 695.40 up 6.20 Mar 699.90 up 6.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Wednesday after a bout of choppy trading.
The United States Federal Reserve raised its key interest rated by the expected 25 basis point. The Fed also hinted that it will likely freeze those rates for the time being after 10 consecutive increases.
The U.S. Department of Agriculture attaché in Vienna projected 2023/24 rapeseed production in the European Union at 19.3 million tonnes, down slightly from last year. Sunflower seed production in the EU is expected to climb 1.2 million tonnes at 10.5 million.
Ahead of tomorrow’s export sales report, the trade estimated old crop soybean sales at 100,000 to 400,000 tonnes. Old crop soymeal is expected to be 75,000 to 300,000 tonnes and old crop soyoil at zero to 20,000 tonnes.
Brazil reported its April soybean exports came to 14.34 million tonnes, up 25 per cent over the previous April.
StoneX forecast 2023/24 soybean production in Brazil to reach 157.7 million tonnes.
WHEAT futures shot up on Wednesday, as the U.S. winter wheat crop continued to struggle.
The Oklahoma State University crop tour projected winter wheat yields of 24.6 bushels per acre for 54.3 million bu. Earlier this week the USDA crop progress report placed Oklahoma’s winter wheat at a mere nine per cent good to excellent.
U.S. wheat export sales are expected to be less than 200,000 tonnes of old crop.
Talks to renew the Black Sea export agreement began today. There was a dark cloud over the negotiations after Russia claimed Ukraine tried to assassinate President Vladimir Putin at the Kremlin using a drone. Ukraine vehemently denied the allegation.
CORN futures were higher on Wednesday, on spillover from soybeans and wheat.
Export sales of U.S. corn are expected to range from net cancellations of 450,000 tonnes up to 600,000 tonnes of fresh old crop sales.
The U.S. Energy Information Administration said ethanol production for the week ended April 28 averaged 976,000 barrels per day, slightly higher than the previous week, Ethanol stocks were cut by 943,000 barrels at 23.36 million.
StoneX projected 2023/24 corn production in Brazil at 131.6 million tonnes.
