By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed higher on Wednesday, as an upward shove during the last minutes of trading turned prices positive.
Canola came out of the overnight session with losses, only to rise up C$6 to C$7 per tonne during the morning, a trader explained. He said those increases had pretty much evaporated by the latter part of the morning.
The trader noted the canola across the Prairies is off to a good start, which will keep a lid on any increases. He said only a bad turn in the weather could generate a rally to push the oilseed’s prices anywhere close to C$700/tonne.
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While the United States markets were closed for the Juneteenth holiday, support for canola came from upticks in European rapeseed and Malaysian palm oil. Crude oil was a pinch lower, which weighed on the oilseeds.
Manitoba Agriculture reported spring planting provincewide reached 97 per cent complete, with the canola at 96 per cent seeded.
The Canadian dollar was a pinch higher by mid-afternoon Wednesday with the loonie at 72.92 U.S. cents compared to Tuesday’s close of 72.87.
There were 19,161 contracts traded on Wednesday, compared to the 56,328 contracts that changed hands on Tuesday. Spreading accounted for 9,214 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 609.90 up 0.50 Nov 628.40 up 2.30 Jan 634.60 up 2.00 Mar 637.50 up 1.70
Soybean, corn, and wheat futures in the United States were closed Wednesday in observance of the Juneteenth holiday. Trading is scheduled to resume today at 7 pm CDT.
An inverse in SOYBEANS was indicative of the slow pace of farmer selling.
Weather conditions are to turn drier for the central and western portions of the U.S. Midwest. Rain remained in the forecast for the Northern Plains.
The U.S. Department of Agriculture postponed its weekly export sales report to Friday. The USDA is set to publish its quarterly grain stocks and planted acreage reports on June 28.
Abiove pegged the 2023/24 soybean crush in Brazil at 54.5 million tonnes and soybean exports at 97.8 million.
A German farm group estimated Germany’s winter rapeseed production is to drop eight per cent from a year ago at 3.89 million tonnes due to reduced acres. However the group nudged up its call from its May estimate of 3.87 million tonnes.
China reported its May CORN imports of 1.5 million tonnes were the lowest in 13 months.
Dry conditions in China’s north continued to pose a threat to corn crops in the region.
With the holiday, the U.S. Energy Information Administration delayed its ethanol report to Thursday. The trade guesses projected ethanol production to slip to one million barrels per day. Ethanol stocks are expected to drop by 520,000 barrels at 22.7 million.
SovEcon cut Russian corn production by 12 per cent at 14.6 million tonnes.
The Illinois Wheat Association crop tour estimated the state’s soft red WHEAT yield at 104 bushels per acre.
SovEcon chopped Russian wheat output by 13 per cent at 80.7 million tonnes.
Germany’s wheat crop was projected to drop 5.5 per cent from a year ago at 20.34 million tonnes based on fewer acres, according to a German farm association. In May, the association pegged the country’s wheat output at 20.31 million tonnes.
Japan issued a tender for 84,667 tonnes of wheat split between Australia, Canada and the U.S.
