By Glen Hallick, MarketsFarm
WINNIPEG, March 29 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished with another round of gains on Wednesday as the funds continued to get out of their short positions.
Increases in the Chicago soy complex, European rapeseed and Malaysian palm oil provided additional support for canola. Slightly lower global crude oil prices put a little bit pressure on the vegetable oils.
The United States Department of Agriculture attaché in Ottawa forecast Canada’s 2023/24 canola crop at 18.3 million tonnes. That’s lower than the current estimate of 18.5 million tonnes from Agriculture and Agri-Food Canada. Come the end of April, Statistics Canada will issue its first crop outlook for the year.
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The Canadian dollar was higher at mid-afternoon Wednesday, as the loonie was at 73.69 U.S. cents, compared to Tuesday’s close of 73.39.
There were 32,052 contracts traded on Wednesday, which compares with Tuesday when 28,895 contracts changed hands. Spreading accounted for 22,382 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola May 770.00 up 7.60 Jul 752.10 up 4.10 Nov 725.00 up 1.50 Jan 728.70 up 1.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Wednesday, as there have been indications of China moving away from buying soybeans from Argentina and turning to the United States.
Ahead of Monday’s resumption of the weekly crop progress reports, the U.S. Department of Agriculture (USDA) reported soybean planting was underway in Louisiana, with two per cent of the crop seeded in the state as of March 26.
The USDA will issue its prospective plantings and quarterly grain stocks reports on Friday at 11 am CDT. The trade pegged soybean acres for 2023/24 at 88.24 million and total farm/commercial soybean stocks at 1.74 billion bushels as of March 1.
CORN futures were higher on Wednesday, fueled by another private sale to China, this one for 204,000 tonnes.
The USDA reported that seven per cent of corn crop in Mississippi was planted as of March 26, two points ahead of this time last year.
U.S. corn acres for 2023/24 are to be 90.88 million. Total corn stocks were projected to be 7.47 billion bushels.
The U.S. Energy Information Administration said ethanol production for the week ended March 24 averaged slightly more than one million barrels per day. Ethanol stocks grew 2.5 per cent at about 25.53 million barrels.
The U.S. Army Corps of Engineers reported several barges broke loose on the Ohio River near the McAlpine Locks and Dam.
Brazil’s second corn crop is estimated to be 96 per cent planted.
WHEAT futures were mixed on Wednesday, after Cargill announced it will stop exporting grain from Russia as of July 1. So far this marketing year, Cargill has accounted for about four per cent of all Russian grain exports.
News agency Interfax reported that Russia is building 61 grain vessels with the first of the ship to be ready in about three years.
Also, Interfax reported that Russia will cease all nuclear-related notifications to the U.S., thereby raising the stakes over the war in Ukraine.
The National Oceanic and Atmospheric Administration forecast continued dryness across the U.S. Southern Plains.