By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 24 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures closed lower on Wednesday, due to pressure from declines in other vegetable oils.
The Chicago soy complex was to the downside and there were losses in European rapeseed and the off session of Malaysian palm oil.
In a day of choppy trading, global crude oil prices were moving higher, helping veg oils come off of their lows.
A trader said canola is relatively cheap compared to veg oils, which could see the Canadian oilseed have something of a rally before the Prairie is well underway.
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The trader also questioned the data in the forthcoming principal crop report from Statistics Canada. Despite the agency’s use of a computer model, he noted the data will be a month old be the time the report is released on Monday. He said Statistics Canada is likely to place canola at about 20 million tonnes, but the actual harvest is probably about 18.5 million tonnes.
The Canadian dollar was a pinch lower at mid-afternoon as the loonie eased back to 77.05 U.S. cents, compared to Tuesday’s close 77.09.
There were 27,096 contracts traded on Wednesday, which compares with Tuesday when 26,129 contracts changed hands. Spreading accounted for 18,576 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 843.60 dn 6.80
Jan 852.30 dn 6.10
Mar 858.00 dn 4.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, as profit-taking and a strong United States dollar weighed on values.
As the Pro Farmer Crop Tour pressed on, the eastern leg estimated the soybean pod count in Indiana at less than 1,166 per square. The western leg put its pod count in Nebraska at 1,064. Last year, the tour placed pod counts at 1,240 in Indiana and 1,226 in Nebraska.
The U.S. Department of Agriculture (USDA) announced a private sale of 517,000 tonnes of new crop soybeans to China.
Rains have slowed the soybean harvest on the U.S. Delta, with more precipitation in the forecast.
China’s July soybean imports came in at 7.9 million tonnes, the lowest July number in five years.
CORN futures were higher on Wednesday, as concerns about the forthcoming harvest increase.
The Pro Farmer tour predicted corn yields in Indiana at nearly 178 bushels per acre and 158.5 in Nebraska. A year ago the forecast was 102 bu/ac. for Indiana and 182.4 in Nebraska.
As dry conditions are rather prevalent in South America, AgRural said the second corn harvest in Brazil reached 90 per cent complete. That’s a gain of almost five points on the week.
European corn imports have increased due to drought on the continent. For the week ended Aug. 21, Europe imported about 626,000 tonnes, 52.3 per cent more than the same period last year.
WHEAT futures were higher on Wednesday, with spillover from corn.
The southwestern corner of the U.S. Plains is forecast to get rain during the weekend. Also, precipitation is to become more frequent over the region going into September.
SovEcon said Russian wheat exports for July-August were at 5.9 million tonnes, the lowest amount in five years.
A report said the Russian wheat harvest is 59 per cent finished, producing 75 million tonnes so far. Yields were pegged at 35 per cent higher than last year.
APK Inform cut its monthly projection of this year’s total grain production in Ukraine by 5.2 per cent at 52.5 million tonnes, due to the war. Last year Ukraine produced 86 million tonnes.
Reports said drought will curtail wheat and rice production in China.
