By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed lower on Wednesday, due to insufficient support.
Although gains in Chicago soyoil and European rapeseed underpinned canola, pressure came from losses in Chicago soybeans and soymeal, as well as Malaysian palm oil.
After spending much of the day lower, global crude oil prices turned mixed which provided little direction to vegetable oils.
An analyst noted there are good supplies of canola but little demand for it, meaning there’s no upside for the oilseed.
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The Canadian dollar slipped back on Wednesday with the loonie at 73.94 U.S. cents compared to Tuesday’s close of 74.17.
There were 42,435 contracts traded on Wednesday, which compares with Tuesday when 30,643 contracts changed hands. Spreading accounted for 27,470 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Mar 626.70 dn 3.10 May 633.50 dn 2.90 Jul 638.90 dn 2.70 Nov 637.50 dn 2.30
SOYBEAN futures at the Chicago Board of Trade were down sharply on Wednesday, as the South American soybean harvest begins to pick up pace.
The U.S. National Oilseed Processors Association reported the December soybean crush came in at 195.33 million bushels. Not only did that exceed trade expectations, but a new NOPA record was also set for any month. Soyoil stocks grew to 1.36 billion pounds.
Consultancy EarthDaily Agro cut its call on the Brazil soybean harvest from 154.4 million tonnes to now 149.2 million, noting the yields in Mato Grasso are the worst in 15 years. However, indications are for losses in Brazil to be easily made up by increases in Argentina.
The European Commission reported soybean imports as of Jan. 14 were 6.3 million tonnes, slightly more than a year ago. Rapeseed imports dropped to 3.02 million tonnes from 4.24 million this time last year.
CORN futures were slightly lower on Wednesday, held back by declines in soybeans and wheat.
Dr. Michael Cordonnier of Soybean and Corn Advisor Inc. cut his forecast on Brazil corn production by two million tonnes at 115 million.
The European Commission said its corn imports reached 9.52 million tonnes, dropping 42 per cent from a year ago.
France trimmed its corn export estimate to 4.15 million tonnes and raised its carryover to 2.2 million.
Ukraine reported its January grain exports were 2.5 million tonnes, compared to 2.4 million a year ago.
Algeria said it’s seeking to purchase 160,000 tonnes of corn.
WHEAT futures were mixed on Wednesday, with a small uptick in Chicago but losses for Kansas City and Minneapolis.
The European Commission placed its wheat exports at 16.88 million tonnes, down 7.1 per cent from this time last year. However, data from Italy was incomplete.
France estimated its wheat exports at 17 million tonnes, down 200,000 from the previous forecast.
Russia cut its wheat export tax by 5.3 per cent at US$44.40 per tonne.
In international purchases, Algeria acquired 900,000 tonnes of milling wheat and Jordan bought 120,000 tonnes of wheat. Japan issued tenders for 88,000 tonnes of wheat plus 20,000 tonnes of feed barley.
