By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were stronger on Wednesday, the first day of trading after Christmas and Boxing Day.
The Canadian oilseed needed to play catch-up with gains made on Tuesday in the Chicago soy complex. Additional upticks on soybeans and soyoil lent more support to canola, while losses in soymeal tried to put a lid on further increases. European rapeseed was higher on the day while Malaysian palm oil was relatively steady. Declines in global crude oil prices put pressure on vegetable oils.
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Although trading volumes were healthy today, lighter activity is expected for the rest of this week and could lead to significant price swings.
Canola crush margins retreated to less than C$200 per tonne above the futures.
The Canadian dollar was higher at mid-afternoon Wednesday with the loonie at 75.68 U.S. cents compared to Friday’s close of 75.43.
There were 34,581 contracts traded on Wednesday, which compares with Friday when 21,450 contracts changed hands. Spreading accounted for 15,138 contracts traded.
SOYBEAN futures at the Chicago Board of Trade were a pinch higher on Wednesday, recovering from losses earlier in the session.
The United States Department of Agriculture reported on Tuesday export inspections of soybeans were 1.07 million tonnes as of Dec. 21. Although that’s down from the previous week’s 1.43 million tonnes, it’s within trade expectations. The year-to-date reached 22.25 million tonnes, behind the 27.30 million a year ago.
Brazil is forecast to get a much-needed reversal in its weather, with the country’s north to turn wet and its south to become drier. Although the vast majority of the Brazil soybean crop continues to grow and mature, the harvest in Mato Grosso was reported to be one per cent complete. That’s the earliest start on record in the Brazilian state.
Soybean and Corn Advisor’s Dr. Michael Cordonnier chopped two million tonnes from his call on Brazil’s soybean crop, now at 153 million. Cordonnier kept his estimate for Argentina at 50 million tonnes.
Abiove reduced its estimate of Brazil soybean production by 1.6 million tonnes at 160.3 million.
China said it will press ahead with adopting GMO varieties of soybeans and corn.
CORN futures were lower on Wednesday, getting pressure from wheat.
The USDA said corn inspections tallied 1.08 million tonnes, up from 959,852 tonnes a week ago and above trade projections. The year-to-date of 11.24 million tonnes remained well ahead of the 8.92 million tonnes this time last year.
Two railway bridges between Texas and Mexico were reopened on Friday after being closed for five days to stop migrants from crossing into the U.S.
Cordonnier kept his forecasts for Argentina and Brazil corn production at 53 million and 117 million tonnes, respectively.
WHEAT futures were lower on Wednesday, giving up much of the gains made the day before.
U.S. wheat export inspections amounted to 428,663 tonnes, for a significant improvement over the 284,792 last week, as well exceeding market estimates. The year-to-date was 9.33 million tonnes, compared to the 11.81 million a year ago.
A weather system recently brought a mixture of rain, sleet and snow to parts of the U.S. Northern Plains.
Depending on the source, Ukrainian forces reportedly damaged or destroyed the Russian landing ship Novocherkassk on Tuesday, weakening Russia’s amphibious assault capabilities in the Black Sea.
Coceral placed total European grain production for 2024/25 at 139.40 million tonnes, a pinch higher than this year’s total harvest. Coceral also projected Russia’s grain output at 142.60 million tonnes, down 9.5 per cent from this year. Russian wheat production is to account for 92.77 million tonnes.
Russia placed its next wheat crop at 99.80 million tonnes, down from this year’s harvest of 104.20 million.
