By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 25 (MarketsFarm) – Intercontinental Exchange canola futures closed higher on Wednesday after taking a sharp hit earlier this week.
Support for the Canadian oilseed came from increases in Chicago soyoil, European rapeseed and Malaysian palm oil. Declines in Chicago soybeans and soymeal tried to temper further upswings. Gains in global crude oil prices spilled over into the vegetable oils.
Statistics Canada reported the September canola crush was more than 922,000 tonnes compared to nearly 724,000 a year ago. StatCan also said September canola deliveries amounted to 2.09 million tonnes, up from last September’s 1.91 million.
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Over the next couple of days 10 to 20 centimeters of snow is to fall over the southeastern Prairies, while the western Prairies had a dump of snow yesterday. Daytime highs across the region this week are to be minus five to minus 10 Celsius.
The Bank of Canada interest rate freeze today did not have a direct effect on canola, according to an analyst. Rather, the freeze pulled down the Canadian dollar. At mid-afternoon Wednesday, with the loonie dropped to 72.48 U.S. cents from Tuesday’s close of 72.83.
There were 46,152 contracts traded on Wednesday, which compares with Tuesday when 43,065 contracts changed hands. Spreading accounted for 31,208 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 678.10 up 0.60 Jan 692.90 up 4.10 Mar 703.40 up 4.70 May 708.70 up 4.50
SOYBEAN futures at the Chicago Board of Trade were lower on Wednesday along with soymeal, but soyoil finished sharply higher.
The United States Department of Agriculture announced a private sale of 126,000 tonnes of 2023/24 soybeans to China.
China signed a framework agreement U.S. exporters that could result in US$1 billion of soybeans, corn, sorghum and wheat exports.
The Brazil weather forecast has called for dry conditions over the next one to five days but turning wetter in the following six to 10 days.
Brazil soybean exports for October are expected to be 6.14 million tonnes, jumping from the year ago of 3.59 million.
CORN futures were lower on Wednesday due to a lack of fresh news.
The U.S. harvest will be slowed by a dump of snow across parts of the Northern Plains, while rain is to fall on the Midwest and Southern Plains. After that, the six to 10-day forecast said there are to be below normal temperatures and precipitation.
The U.S. Energy Information Administration reported ethanol production for the week ended Oct. 20 bumped up 5,000 barrels per day to average of 1.04 million. Ethanol stocks increased by 286,000 barrels at nearly 21.4 million.
The USDA attaché in Ukraine placed that country’s 2023/24 corn harvest at 30.7 million tonnes, up 17 per cent from 2022/23 and 10.4 per cent more than the department’s October supply and demand report.
Brazil corn exports for October are projected to be 8.24 million tonnes, up from last October’s 6.17 million.
WHEAT futures were down on Wednesday, due to the precipitation in the U.S. forecast.
The European Union said its soft wheat exports were down 22 per cent in 2023/24 compared to 2022/23, pointing to Russian competition as the reason.
Ukraine reported its winter wheat planting is almost 80 per cent complete with production forecast to be 21.6 million tonnes.
The Buenos Aires Grain Exchange said Argentina’s wheat crop was at 47 per cent poor to very poor with the drought likely to worsen.
