By Glen Hallick, MarketsFarm
WINNIPEG, June 14 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Wednesday, due to mixed support from comparable oils.
There were sharp declines in European rapeseed while Malaysian palm oil advanced and Chicago soyoil turned around to push higher. Chicago soybeans were mixed and soymeal stepped back. After crude oil prices flirted with either side of steady, they were on the decline on Wednesday afternoon, which put pressure on the vegetable oils.
As much needed rain for parts of Alberta weighed on canola values, Saskatchewan was mostly dry.
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Manitoba reported spring planting has wrapped up for the year, except for any reseeding in the province’s southwest following a recent storm. canola’s development was coming along nicely with some bolts reported in the earliest seeded fields.
The Canadian dollar was lower at mid-afternoon Wednesday, with the loonie at 75.04 U.S. cents, compared to Tuesday’s close of 75.13.
There were 41,254 contracts traded on Wednesday, which compares with Tuesday when 34,495 contracts changed hands. Spreading accounted for 29,136 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 694.30 dn 5.10 Nov 671.90 dn 4.60 Jan 678.90 dn 3.30 Mar 685.00 dn 3.00
SOYBEAN futures at the Chicago Board of Trade were mixed on Wednesday, but soyoil erased earlier losses to close higher.
The United States Environmental Protection Agency postponed its announcement on its biodiesel blending requirements for 2023-25 from June 14 to June 21.
The Bunge-Viterra merger will face regulatory scrutiny in Canada, according to a spokesperson with the country’s competition bureau. The US$34 billion deal could also face reviews in Argentina, Brazil, Australia, the European Union, and the U.S.
Ahead of Thursday’s report from the U.S. National Oilseed Processors Association, the average trade guess pegged the May soybean crush at 175.88 million bushels. Soyoil stocks were forecast to be 1.96 billion pounds.
CORN futures were lower on Wednesday, as parts of the U.S. Corn Belt are forecast to receive one to three inches of rain in the coming days.
The U.S. Energy Information Administration reported ethanol production for the week ended June 9 averaged 1.02 million barrels per day, for a slight dip from the previous week. Ethanol stocks lost 722,000 barrels at 22.23 million.
WHEAT futures were lower on Wednesday, as the U.S. winter wheat harvest progresses and as development of the spring wheat crop advances.
France-based crop institute Arvalis said the hot weather in the country is likely to cut into potential crop yields. It’s believed that winter crops will still have good harvests, but spring planted fields may be affected. Also, geological service BRGM reported almost two-thirds of ground water levels in France are below average.
FranceAgriMer raised its estimate of the 2022/23 wheat carryover from 2.72 million tonnes to 2.89 million.
As Ukraine ramped up its summer counter-offensive, Russia launched more missile and drone strikes targeting Ukrainian cities, including Odesa. Russia said it’s set to move some of its tactical nuclear weapons into neighbouring Belarus. Also, President Vladimir Putin claimed Russia was being treated poorly under the terms of the Black Sea export agreement and threatened again to pull out.
In international purchases, Taiwan bought 56,000 tonnes of U.S. wheat and Japan issued a tender for 60,000 tonnes of feed wheat.
