By Glen Hallick, MarketsFarm
WINNIPEG, July 27 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) saw more gains on Wednesday, getting support from increases in comparable oils.
Good upticks in global crude oil prices spilled over into vegetable oils. That spurred sharp upswings in the Chicago soy complex and European rapeseed, along with much more moderate gains in the off session of Malaysian palm oil.
Despite some seasonably cool temperatures on the eastern Prairies today, the entire region remained forecast to reach 30 degrees Celsius by the weekend.
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Manitoba reported its crops are in good shape, although the wet conditions in the province have raised concerns for fungal diseases.
Canadian National Railway saw its second quarter revenues beat expectations due to higher freight rates and fuel charges. The railway garnered C$4.34 billion. That was 6.4 per cent above projections and 21 per cent more than the same quarter last year.
The Canadian dollar was on the rise at mid-afternoon as the United States turned lower. The loonie rose to 77.83 U.S. cents, compared to Tuesday’s close 77.62.
There were 18,385 contracts traded on Wednesday, which compares with Tuesday when 21,018 contracts changed hands. Spreading accounted for 9,016 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 824.40 up 10.60
Jan 833.20 up 11.10
Mar 841.50 up 11.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Wednesday, as hot temperatures and dry conditions continued to be forecast for most of the major growing areas of the United States.
The U.S. Federal Reserve followed through on widely held expectations and upped its key interest rate by 75 basis points at 2.5 per cent. The Fed’s June-July hikes marked the first 150-point jump since the early 1980’s.
With the European Union faced with the potential shutdown of its soybean crushing facilities, that could put more soybeans on the global market.
Conversely, reports said Argentine soybean processors were having difficulty getting acquiring supplies, which pushed soymeal prices higher.
CORN futures were slightly on Wednesday, due to soybeans having more sway over prices than wheat.
The U.S. Energy Information Administration (EIA) reported ethanol production for the week ended July 22 averaged 1.02 million barrels per day. That was a 1.3 per cent decline from the previous week. Ethanol stocks gained 225,000 barrels to be at 23.33 million.
The EU corn crop could shrink to 55 million to 58 million due to drought across most of western Europe. Last month, the U.S. Department of Agriculture (USDA) estimated the EU’s corn production at 68 million tonnes.
WHEAT futures fell on Wednesday, with the market correcting after two days of strong increases.
The Wheat Council Quality Tour traveling through North Dakota completed its first day on Tuesday, with a projected yield of 48.9 bushels per acre. The tour continues until Thursday. Last year at this time their estimate was only 29 bu/ac.
The United Nations said Ukraine could exporting grain from its war-torn ports before the end of the week. It’s believed Ukraine has about 25 million tonnes of grain needing to be exported. Ukraine said they can export about 3.5 million tonnes per month, although the deal called for shipments of five million tonnes. Russia indicated it may see fit to violate the deal due to concerns over their own grain exports.
