By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed mixed on Wednesday, after attempting to turn positive.
A broker stated today’s dip in canola was due in part to farmer selling, as prairie cash prices reaching C$14 per bushel spurred producers to sell their canola ahead of spring planting. He added that routine seasonal rebounds along with some short covering were behind the gains in the oilseed.
While support for canola came from upticks in Chicago soybeans and soyoil, along with Malaysian palm oil, declines in Chicago soymeal and European rapeseed limited gains. Stronger global crude oil prices lent support to the oilseeds.
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The nearby May canola contract remained well above its 50-day moving average, underpinning its value.
Statistics Canada reported the country’s 2023 canola crush tallied 10.52 million tonnes, improving on the previous year’s crush of 8.77 million.
The Canadian dollar is higher at mid-afternoon Wednesday with the loonie rising to 74.25 U.S. cents compared to Tuesday’s close of 74.08.
There were 60,647 contracts traded on Wednesday, compared to Tuesday when 44,542 contracts changed hands. Spreading accounted for 39,664 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola May 625.00 dn 2.70 Jul 634.80 dn 1.20 Nov 642.80 up 0.90 Jan 650.40 up 1.00
SOYBEAN futures at the Chicago Board of Trade turned around to finish slightly higher on Wednesday.
Ukrainian drone strikes on Russian oil facilities were said to be behind the increase in crude oil prices, with spillover going to the vegetable oils.
Farmer selling of United States soybeans remained light in hopes of improved prices.
Consultancy Datagro reported Brazil soybean farmers are reluctant to sell, with 33.2 per cent of their 2023/24 crop sold. That’s a dip from last year’s 33.8 per cent, and much lower than then the 62.6 per cent in 2020/21.
Conab cut 2.55 million tonnes from its latest call on Brazil soybean production, now at 146.85 million.
Heavy rains in Argentina have flooded some crops and caused flash floods in parts of the country.
CORN futures were a pinch lower on Wednesday, caught between support from soybeans and pressure from wheat.
Reports said U.S. farmer selling of corn recently picked up but wasn’t very strong.
The U.S. Energy Information Administration said ethanol production for the week ended Mar. 8 averaged 1.024 million barrels per day, down from the previous week’s 1.057 million. Ethanol stocks declined by 269,000 barrels at 25.782 million.
Conab reduced its estimate on Brazil corn output by 944,000 tonnes at 112.75 million.
WHEAT futures were lower on Wednesday, due to Russian wheat being the cheapest on the global market.
The NASA GRACE project reported soil moisture levels at the root zone have improved from last year in Oklahoma, South Dakota and Texas, as well as areas of Kansas and Nebraska. But conditions turned worse in a region from southern Minnesota to Ohio, including some parts of Kansas and Nebraska.
France reduced its projections for its soft wheat exports outside of the European Union by 100,000 tonnes at 10.15 million. Shipments to EU members were cut by 130,000 tonnes at 6.19 million.
Farmers in Poland continued to block their country’s border crossings with Ukraine, except for the one at Dorohusk. Farmers have been railing against the EU’s green initiatives and cheaper imports from Ukraine.
Meanwhile, the Ukraine grain union projected the smallest wheat crop in 20 years at 20 million tonnes, down 14.5 per cent from the previous year due to the war.
India said its March wheat stocks fell by two million tonnes at 9.7 million, their lowest level in seven years.
