By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 17 (MarketsFarm) – After a day of choppy trading Intercontinental Exchange (ICE) canola futures finished a little higher on Wednesday.
Support for canola was derived from increases in Chicago soybeans and soymeal. However, weakness in Chicago soyoil, European rapeseed and the off session of Malaysian palm oil weighed on values. Higher global crude oil prices were supportive of vegetable oils.
Favourable growing conditions across most of the Prairies added pressure on canola.
The Canadian dollar was slightly lower at mid-afternoon, with the loonie at 77.62 U.S. cents, compared to Tuesday’s close 77.72.
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There were 24,978 contracts traded on Wednesday, which compares with Tuesday when 20,677 contracts changed hands. Spreading accounted 15,474 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 815.60 up 2.20
Jan 824.40 up 2.10
Mar 831.20 up 3.90
May 835.00 up 5.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Wednesday, taking advantage of gains in crude oil.
The United States Department of Agriculture (USDA) will publish its weekly export sales report on Thursday. The trade expects a net reduction in old crop soybean sales, while new crop sales are to be on the plus side.
The USDA is set to release its initial planted acres and prevent plant data on Aug. 22, after being postponed on Aug. 12.
The weather outlook for the U.S. Southern Plains has called for heavy rains likely over the weekend.
Barchart bumped up its call on U.S. soybean yields to 51.4 bushels per acre.
CORN futures were higher on Wednesday, due to spillover from soybeans.
The U.S. Energy Information Administration (EIA) reported ethanol production for the week ended Aug. 12 was 983,000 barrels per day, down 3.8 per cent from the previous week. Despite that decline, the EIA said ethanol stocks are up 190,000 barrels at 23.45 million.
Old crop corn export sales are expected to be zero to 400,000 tonnes and new crop is projected to come in at 300,000 to 700,000 tonnes.
Barchart trimmed its estimate on U.S. corn yields by 2.4 bu/ac., now at 175.4.
AgRural said the second corn harvest in Brazil was more than 85 per cent complete, about 15 points ahead of this time last year.
WHEAT futures were weaker on Wednesday, lacking fresh bullish news.
U.S. wheat export sales were forecast to be 250,000 to 650,000 tonnes.
India claimed its wheat output will be 106.85 million tonnes, however the markets are skeptical the country’s production will be that much. The USDA placed the Indian wheat harvest at 103 million tonnes.
SovEcon increased its call on Russian wheat production by 4.2 per cent at 94.7 million tonnes. However, exports of 4.67 million tonnes are down 13 per cent from a year ago.
Five vessels are expected to arrive at the Ukrainian port of Chornomorsk on Wednesday to load 70,000 tonnes of agricultural goods.
