By Glen Hallick, MarketsFarm
WINNIPEG, March 2 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures fell back on Wednesday, after being dragged down by weakness in the Chicago soy complex and Malaysian palm oil. Reports of another round of cease-fire talks between Russia and Ukraine was said to have triggered the declines.
Meanwhile, European rapeseed was mostly higher except for its nearby May contract, which was sharply lower. Another day of strong gains in global crude oil prices was underpinning edible oils.
Concerns over the Russian invasion of Ukraine, now into its seventh day, continued to fuel sharp upswings in crude oil and wheat. However, an analyst stressed the steep upticks in several commodities could soon turn into sharp losses, including limit down days.
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Glacier FarmMedia | MarketsFarm – The Canadian dollar eased off on Monday, but remained above the 73 United States cent mark….
The Canadian dollar was stronger at mid-afternoon, with the loonie at 79.02 U.S. cents, compared to Tuesday’s close of 78.69.
There were 19,934 contracts traded on Wednesday, which compares with Tuesday when 29,608 contracts changed hands. Spreading accounted for 8,658 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 1,061.30 dn 18.60
Jul 1,038.10 dn 11.50
Nov 884.50 dn 6.70
Jan 884.90 dn 6.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Wednesday, due to reports that Russia and Ukraine were pursuing another round of cease-fire talks.
The United States Department of Agriculture announced two private sales of soybeans. One was for 266,000 tonnes to China, of which 74 per cent is to be delivered during the current marketing year and the balance the following year. The other sale was for 264,000 tonnes to unknown destination, with 75 per cent to be delivered in 2021/22 and the remainder in 2022/23.
StoneX has cut 4.2 per cent off of its forecast on Brazil soybean production for the current year at 121.2 million tonnes.
India requested more palm oil exports from Indonesia as Ukraine is unable to supply sunflower oil to India.
CORN futures finished a pinch lower on Wednesday after choppy trading.
Several Black Sea ports have closed due to Russia’s invasion of Ukraine and economic sanctions against the aggressor. Ukraine supplies about 16 per cent of the world’s corn exports and a number of buyers are looking to the European Union for their corn.
The U.S. Energy Information Administration reported ethanol production for the week ended Feb. 18 averaged 997,000 barrels per day, down 2.6 per cent from the previous week. Ethanol stocks slipped 2.3 per cent at 24.99 million barrels.
StoneX kept its call on Brazil corn production at 116.1 million tonnes.
WHEAT futures were mixed on Wednesday, with an expanded limit up gain for Chicago May, while the December contract was lower. Meanwhile the nearby Kansas City contracts closed a little back from the new limit, with losses in the new crop months. Minneapolis shed nearly all of its gains.
A report estimated 12 million to 15 million tonnes of wheat are unable to be exported out of Ukrainian or Russian ports on the Black Sea.
The drought in the U.S. Southern Plains is reported to be expanding, while more precipitation is in the forecast for the Northern Plains.
