By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 30 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Wednesday, completely dispensing with any support from yesterday’s production estimates from Statistics Canada.
With the pace of the Prairie canola combining soon to pick up, a trader said harvest pressure is already being felt in the market.
Losses in the Chicago soy complex also weighed on canola values, but support came from gains in European rapeseed and Malaysian palm oil. Slight upticks in global crude oil prices spilled over into the vegetable oils.
Read Also
Canadian Financial Close: Loonie drops, new record for TSX
Glacier FarmMedia | MarketsFarm – The Canadian dollar tumbled on Friday but still ended the week slightly higher than the last….
Daytime highs on the Prairies on Wednesday ranged from the low 20 degrees Celsius to pushing towards 30 C. Over the next couple of days a system is to bring rain to parts of the region.
Manitoba reported its provincewide harvest was 18 per cent complete overall. Only the province’s central region saw any canola combining, which reached 15 per cent finished.
The Canadian dollar was higher at mid-afternoon Wednesday, as it took advantage in declines in the United States dollar. The loonie rose to 73.86 U.S. cents, compared to Tuesday’s close of 73.57.
There were 25,917 contracts traded on Wednesday, which compares with Tuesday when 27,014 contracts changed hands. Spreading accounted for 16,004 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 809.20 dn 2.60 Jan 814.80 dn 3.60 Mar 816.70 dn 4.50 May 814.10 dn 5.50
SOYBEAN futures at the Chicago Board of Trade were lower on Wednesday, with any bullish news insufficient to push up prices.
The United States Department of Agriculture announced a private sale for 266,000 tonnes of 2023/24 soybeans to unknown destinations. This is the fourth consecutive day of large soybean sales to either China or unknown destinations.
Farm Futures said it estimates U.S. soybean plantings for 2023/24 at 85.4 million acres, 2.5 per cent higher than that from the USDA.
ANEC estimated Brazil’s August soybeans exports at 7.37 million tonnes, up from last year’s 5.05 million. Soymeal exports for August are to rise from 1.7 million tonnes a year ago to 1.9 million.
Argentina will adjust its ‘soybean dollar’ program to maintain a preferential rate and encourage more export sales.
CORN futures were lower on Wednesday, in sympathy with soybeans.
The U.S. Energy Information Administration said average ethanol production for the week ended Aug. 25 was 1.01 million barrels per day, for a dip of 41,000 BPD. Soyoil stocks were down 1.1 million barrels at 21.6 million.
Farm Futures pegged U.S. 2023/24 corn plantings at 93.1 million acres, compared to the 94.1 million by the USDA.
While the corn harvest is stalled in central Brazil, ANEC projected the country’s August corn exports at 9.19 million tonnes, much higher than the 6.89 million last year.
WHEAT futures were mixed on Wednesday, with gains in Chicago and Kansas City and declines in Minneapolis.
Drought conditions has led to a drop in water levels on the Mississippi River and reports said that will result in barge restrictions.
Farm Futures projected U.S. winter wheat plantings for 2024 at 38.7 million acres, five per cent more than what the USDA estimated. As well, Farm Futures forecast 2024 spring wheat planting at 14.0 million acres, nearly eight per cent bigger this year.
Following Russia’s most severe air strikes on Kyiv recently, Ukraine launched one its largest drone attacks, hitting six different regions in Russia, among the targets were military installations. With so many strikes deep within its territory, Russia accused the West of assisting Ukraine.
