By Glen Hallick, MarketsFarm
WINNIPEG, July 5 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished stronger on Wednesday, after a session in which the Canadian oilseed lost much of its gains only to bounce back.
Support for canola came from strong upticks in Chicago soyoil and modest increases in Malaysian palm oil. While European rapeseed was mixed, Chicago soybeans nudged up a bit higher and soymeal slipped back. Global crude oil prices were higher on the day, with a sharp upswing in West Texas Intermediate.
As Prairie temperatures are to remain in the low to mid 20 degrees Celsius, the eastern half of the region is to get rain in the coming days. However, the western half is to remain dry.
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The Canadian dollar was weaker at mid-afternoon Wednesday, as the loonie fell back to 75.30 U.S. cents, compared to Tuesday’s close of 75.65.
There were 37,424 contracts traded on Wednesday, which compares with Tuesday when 22,328 contracts changed hands. Spreading accounted for 19,726 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 763.10 up 23.70 Jan 767.90 up 23.40 Mar 771.50 up 22.90 May 774.10 up 21.30
SOYBEAN futures at the Chicago Board of Trade were a pinch higher on Wednesday, that saw trading on either side of steady. Meanwhile, soyoil made significant gains and soymeal eases back.
The United States Department of Agriculture reported the May soybean crush tallied 189.28 million bushels. Not only was that up 4.6 per cent from the previous May, it’s also a new record for the month.
The USDA is a week away from publishing its next monthly supply and demand estimates. Meanwhile, the department’s weekly export sales report has been postponed from tomorrow to Friday due to yesterday’s holiday.
The Rhine River in Germany is reported to be quite shallow despite recent rains. Water levels on the river have stabilized, but cargo vessels cannot be fully loaded.
CORN futures were slightly lower on Wednesday, after trading higher most of the session.
While the weather outlook for the U.S. Corn Belt has still called for rain, the amounts will not be as much as initially thought. Indications are the region is to get one to three inches in the coming days.
The USDA said the May grain crush took in 437.54 million bushels of corn, which exceeded the average trade guess by about six million tonnes.
Mexico pegged its 2023 corn harvest at 28.50 million tonnes, for an increase of two million from its previous forecast. White corn is to come in at 24.89 million tonnes with 3.61 million of yellow corn.
WHEAT futures were stronger on Wednesday, due to dry conditions across most the wheat growing areas coupled with a poor winter wheat harvest.
Agritel raised its projection for 2023 wheat production in Russia from 83.20 million tonnes to 85.70 million, based on favourable weather conditions in the country’s south and central regions.
Another Russian official came forth to reiterate the country’s intention to not renew the Black Sea export deal when it expires on July 18. However, this also continued the pattern the Russians have demonstrated after previous extensions.
