By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures incurred double-digit losses on Wednesday, as the downturn in the oilseeds continued.
Pressure on canola came from declines in the Chicago soy complex, especially soyoil, as well as those in European rapeseed and Malaysian palm oil. Global crude oil prices were attempting to recover but were still slightly lower.
A trader noted long positions were being liquidated and there was some profit-taking. He suggested that canola prices could turn around ahead of spring seeding should dry conditions persist on the Prairies.
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The Canadian dollar was virtually unchanged at mid-afternoon Wednesday, with the loonie at 73.66 U.S. cents.
There were 52,945 contracts traded on Wednesday, compared to Tuesday when 35,724 contracts changed hands. Spreading accounted for 31,704 contracts traded.
A reminder that the North American markets will be closed for Good Friday.
Prices are in Canadian dollars per metric tonne:
Price Change Canola May 627.20 dn 11.30 Jul 637.10 dn 10.90 Nov 645.30 dn 10.30 Jan 652.40 dn 10.60
SOYBEAN futures at the Chicago Board of Trade were lower on Wednesday, caught up in day two of the downturn in global oilseeds.
Ahead of Thursday’s prospective plantings report from the United States Department of Agriculture, the average trade guess for 2024/25 soybean acres is 86.70 million, up 3.10 million from last year. The USDA, at its February Outlook Forum, estimated this year’s plantings to be 87.50 million.
Also come tomorrow, the USDA is scheduled to release its report on grain stocks as of Mar. 1, with the average market prediction at 1.84 billion bushels. The same time last year the department said stocks were 1.69 billion bushels.
The USDA is set to publish its weekly export sales report as well tomorrow. For the week ended Mar. 21, the trade projected old crop soybean sales of 300,000 to 700,000 tonnes, plus new crop sales of less than 50,000 tonnes. Soymeal is expected to be between 150,000 and 350,000 tonnes and soyoil is to be less than 10,000 tonnes.
CORN futures were also lower on Wednesday, as spillover from soybeans proved to be greater than that from wheat.
The average trade guess for U.S. planted corn acres came to 91.80 million, down from last year’s 94.60 million. At the Outlook Forum, the USDA called for 91.0 million acres.
Corn stocks are expected to drop to 8.45 billion bushels from the 9.50 billion in March 2023.
Export sales of old crop corn are expected to be 800,000 to 1.3 million tonnes with new crop under 150,000 tonnes.
The U.S. Energy Information Administration reported ethanol production averaged 1.054 million barrels per day for the week ended Mar. 22, up from the previous week’s 1.046 million. Ethanol stocks bumped up 97,000 barrels at 26.09 million.
A larger than expected number of U.S. cattle on feed and concerns over avian flu affecting dairy cattle weighed on corn values.
South Korea reported bought 269,000 tonnes of corn.
WHEAT futures closed higher on Wednesday, following overnight temperatures in the teens Fahrenheit across much of south central Kansas.
The average trade guess placed total U.S. wheat acres for 2024/25 at 47.30 million, down from last year’s 49.60 million. Spring wheat acres are expected to be 10.90 million.
The average trade guess for U.S. wheat stocks was 1.05 billion bushels, bumping up from last year’s 944 million.
Export sales of old crop U.S. wheat are projected to be from net cancelations of 300,000 tonnes to sales of 100,000 tonnes. new crop sales were pegged at 50,000 to 250,000 tonnes.
