By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were down by double digits on Wednesday, as the global oilseed selloff continued.
A trader said the November contract could soon test the psychological support level of C$600 per tonne.
There were moderate to sharp losses in the Chicago soy complex, European rapeseed and Malaysian palm oil. Upticks in crude oil attempted to stymie further declines in the oilseeds.
That downward shift in canola pushed its November contract below its major moving averages. Also, canola crush margins lost about C$10 with the November positions around C$140 per tonne above the futures.
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Intense heat continued across most of the Prairies, with scattered thunderstorms in Wednesday’s forecast.
Manitoba Agriculture reported the province’s canola was in the rosette stage to flowering, while farmers sprayed for diseases.
The Canadian dollar was a little higher by mid-afternoon Wednesday with the loonie at 73.41 U.S. cents compared to Tuesday’s close of 73.32.
There were 36,840 contracts traded on Wednesday, compared to the 48,156 contracts that changed hands on Tuesday. Spreading accounted for 16,618 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 617.90 dn 14.40 Jan 627.60 dn 14.00 Mar 635.80 dn 13.60 May 642.60 dn 13.10
SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, with the heaviest selling pressure near the end of the session.
Good crop conditions and favourable weather add more pressure onto values.
The United States Department of Agriculture announced the first soybean sale to China for 2024/25 at 132,000 tonnes.
Ahead of the USDA’s July supply and demand report on Friday, the average trade guess put 2024/25 soybean production at 4.42 billion bushels, for a drop of 26 million from the June estimates. The U.S. soybean yield is expected to be 52 bushels per acre. While ending stocks for 2023/24 are projected to increase, those for 2024/25 are forecast to be lower.
As for Brazil soybeans, the trade projected a cut of 1.3 million tonnes to 151.7 million while that for Argentina was left at 50.0 million tonnes.
CORN futures were slightly higher on Wednesday adding on to small gains made yesterday.
Rain from what is left of Tropical Depression Beryl is expected to fall today on parts of Illinois, Indiana, and Ohio. Yesterday, Beryl brought rain to areas over Louisiana, Missouri, and Illinois.
The U.S. Energy Information Administration reported ethanol production for the week ended July 5 eased back 10,000 barrels per day to average 1.05 million BPD. Ethanol stocks inched up 9,000 barrels to nearly 23.07 million. Exports were reported to be 182,000 BPD.
Corn production for 2024/25 was projected to be 15.11 billion, up 253 million from the USDA’s June report. U.S. corn yields were pegged at 181 BPA.
Estimates for corn production in Brazil called for a 700,00-tonne decline at 121.3 million tonnes. Argentina corn is to give up 1.7 million tonnes at 51.3 million.
WHEAT futures saw small losses turn into large declines on Wednesday, especially in Chicago and Kansas City wheat.
The average trade guess has called for U.S. wheat production to increase 40 million bushels in 2024/25 bringing it to 1.92 billion, based on a larger winter wheat crop.
World wheat ending stocks are pegged to nudge up to 252.3 million tonnes from June’s 252.1 million.
South Korea acquired 40,000 tonnes of wheat from Canada and 50,000 tonne from the U.S. Japan issued a tender for 107,330 tonnes of wheat from Australia, Canada and the U.S.
