By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 15 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures pulled well away from earlier lowers on Wednesday to close narrowly mixed in the old crop contracts. There were moderate gains in the lightly traded new crop positions.
While losses in Malaysian palm oil and European rapeseed weighed on canola values, Chicago soyoil marked a dramatic turnaround to finish stronger. Additional support for edible oils came from global crude oil prices, which also moved from losses to gains.
The Canadian dollar at mid-afternoon was supportive of canola as well. The loonie fell back to 77.62 U.S. cents, compared to Tuesday’s close of 77.85.
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There were 19,315 contracts traded on Wednesday, which compares with Tuesday when 22,476 contracts changed hands. Spreading accounted for 10,760 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 999.70 dn 0.80
Mar 978.60 dn 0.60
May 942.40 unchanged
Jul 892.10 up 0.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly higher on Wednesday, as increases in global crude oil prices gave support to edible oils.
The United States National Oilseed Processors Association (NOPA) issued its crush report for November, showing 179.5 million tonnes of soybeans were crushed. That came in 2.18 million bushels below the average trade guess and 1.56 million under the November 2020 crush. NOPA also reported soyoil stocks amounted to 1.83 billion pounds, about 100 million below the average trade guess, but 17.6 per cent more than a year ago.
U.S. Federal Reserve Chair Jerome Powell stated the central bank will speed up its purchases of treasuries and mortgage-backed securities, as well as being more willing to raise interest rates in the months ahead.
Norway-based Yara resumed production at several of its European ammonia plants, which have been idle since September due to overly expensive natural gas prices. Yara’s annual output is 8.5 million tonnes of ammonia.
The Buenos Aires Grain Exchange (BAGE) said soybean planting in Argentina was about 56 per cent complete, with production expectations of 44 million tonnes.
CORN futures were lower on Wednesday, with steep losses in U.S. wheat overpowering support from the soy complex.
The U.S. Energy Information Administration (EIA) reported average ethanol production for the week ended Dec. 10 was almost 1.09 barrels per day, down a smidge from the previous week. Ethanol stocks increased 419,000 barrels at 20.88 million.
Greenfield Global announced it restarted its Winnebago, Minn. ethanol plant, which produces 48 million gallons per year.
The BAGE pegged corn planting in Argentina at 39.5 per cent finished and estimated production at 57 million tonnes.
ANEC increased its call on Brazil corn exports in December by 11.4 per cent at 3.9 million tonnes.
WHEAT futures tumbled on Wednesday, with Chicago and Kansas City incurring the largest declines, with Minneapolis coming off more moderately.
The U.S. dollar remained strong, which made exports more costly.
Precipitation has been forecast for the U.S. Northern Plains, helping to alleviate drought conditions.
Reports said that Russia, the world’s largest wheat exporter, is very likely to reduce its wheat export quota from nine million tonnes to eight million.
In international sales, Algeria purchased 690,000 tonnes of milling wheat and Jordan declined six offers on its barley tender.
