By Glen Hallick, MarketsFarm
WINNIPEG, April 12 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mostly lower on Wednesday, getting hit with spillover from sharp losses in Malaysian palm oil and European rapeseed. Only the nearby May canola contract was higher.
Pressure on the Canadian oilseed also came from losses in Chicago soyoil. Meanwhile soybeans were mixed, and soymeal was higher. Upswings in global crude oil prices attempted to ease the losses in the oilseed markets.
An analyst said the new crop November contract could soon fall below C$700 per tonne, with major support at C$680 per tonne. He added that resistance stood at C$740/tonne, but if there were new fresh bullish news, then it could top C$775.
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With a downturn in the United States dollar, the Canadian dollar was higher at mid-afternoon Tuesday. The loonie climbed to 74.43 U.S. cents, compared to Tuesday’s close of 74.17.
There were 50,477 contracts traded on Wednesday, which compares with Tuesday when 38,084 contracts changed hands. Spreading accounted for 42,422 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola May 771.00 up 1.70 Jul 742.10 dn 5.00 Nov 703.20 dn 11.10 Jan 705.30 dn 11.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were mixed on Wednesday in choppy trading.
Futures International has projected the United States soybean crush for March to be 182.5 million bushels – the same it was in March 2022. Soyoil stocks are expected to be 1.95 billion pounds compared to 1.91 billion a year ago.
Ahead of the weekly export sales report from the U.S. Department of Agriculture (USDA), Futures International predicted old crop soybean sales to be 250,000 to 400,000 tonnes. Old crop soymeal is expected to be 150,000 to 300,000 tonnes, with soyoil at 20,000 to 25,000 tonnes.
Brazil exporter group ANEC projected that country’s soybean exports for April to reach 14.38 million tonnes, up from its call last week of 13.74 million. The increase was based on reduced exports out of Argentina with customers turning to Brazil and other countries.
The Argentine government announced it will permit exporters to delay soy shipments for up to 60 days due to the steep drop in domestic production because of the severe drought.
Also, the Argentine government launched its third soy dollar program. Despite offering soybean producers 40 per cent more than the country’s official exchange rate, it was met with mild interest.
France reported a 9.3 per cent increase in rapeseed plantings, rising to 1.34 million hectares in 2023. France is the European Union’s largest producer of rapeseed.
CORN futures were steady to higher on Wednesday as trading consolidated.
Futures International placed U.S. old crop corn export sales at 850,000 to 1.15 million tonnes.
The United States Energy Information Administration reported average ethanol production for the week ended April 7 came to 959,000 barrels per day – the lowest daily average since Jan. 6. Ethanol stocks dipped 8,000 barrels at 25.13 million.
The planting of the second corn crop in Brazil is reported to be complete.
ANEC forecast Brazil corn exports for April to be 207,000 tonnes, a steep reduction from the 942,000 tonnes a year ago.
WHEAT futures turned mixed on Wednesday, with Kansas City and Minnesota giving up their gains to close lower.
The Black Sea export deal is once again under threat from the Russians. They said they will pull out of deal if insurance and payment obstacles are not removed.
Futures International projected U.S. wheat sales to come in at 100,000 to 200,000 tonnes of old crop.
France trimmed its estimate of total 2023 soft wheat plantings by 10,000 hectares at 4.75 million. Barley was down 2.1 per cent at 1.82 million hectares.
