By Glen Hallick, MarketsFarm
WINNIPEG, Feb 1 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures fell back on Wednesday, pulled down by weakness in comparable oils.
An analyst said the Canadian oilseed remains rangebound, climbing higher for a few days only to retreat for a few days.
Chicago soybeans and soyoil incurred significant losses while soymeal nudged up a little. European rapeseed also stepped back, while the Malaysian palm oil market was closed for a holiday. A downturn in global crude oil prices weighed on vegetable oil values.
Read Also
Canadian Financial Close: Loonie returns above 72 U.S. cents
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar on Friday finally turned around to close higher,…
The Canadian Grain Commission reported that as of the end of December, canola exports for 2022/23 reached 3.56 million tonnes. That’s an increase of 21.7 per cent over the same time the previous December.
The Canadian dollar was slightly higher in choppy trading on mid-afternoon Wednesday. The loonie inched up to 75.01 U.S. cents compared to Tuesday’s close of 74.91.
There were 21,114 contracts traded on Wednesday, which compares with Tuesday when 36,218 contracts changed hands. Spreading accounted for 12,880 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change Canola Mar 828.00 dn 3.90 May 827.10 dn 4.10 Jul 828.90 dn 4.10 Nov 807.80 dn 4.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Wednesday, with sharp losses as well as in soyoil while soymeal was a pinch higher.
The United States Department of Agriculture (USDA) released its fats and oils report after CBOT closed. The December soybean crush came to 187.0 million bushels, one million under the average trade guess. Soyoil produced that month was 2.20 billion pounds.
Ahead of tomorrow’s export sales report, the trade pegged soybeans at 700,000 to 1.3 million tonnes.
The USDA attaché in Argentina pegged that country’s 2022/23 soybean production at 36.0 million tonnes, which is 9.5 million under the department’s current estimate.
Soybean and Corn Advisor kept its projections of the 2022/23 soybean harvest in Argentina at 39.0 million tonnes and 151.0 million for Brazil. As for the South American continent, the consultancy estimated total soybean production at 204.7 million tonnes for an 11.5 per cent increase over the previous year.
CORN futures turned higher on Wednesday in choppy trading.
The U.S. Energy Information Administration reported ethanol production for the week ended Jan. 27 was up slightly, averaging almost 1.03 million barrels per day. Ethanol stocks increased by 635,000 barrels at 24.44 million.
The USDA said the U.S. beef cow herd fell three per cent in January to its lowest level since 1962 with 89.3 million cattle and calves.
Market expectations for the export sales report are 600,000 to 1.2 million tonnes.
The USDA attaché in Brazil estimated the country’s 2022/23 corn output at a record 125.5 million tonnes, an eight per cent increase over 2021/22.
Brazil said its January corn exports were slightly under 5.0 million tonnes, coming up short of the projected 5.2 million.
Soybean and Corn Advisor froze its estimates for 2022/23 corn production in Argentina at 44.0 million tonnes and 125.0 million for Brazil. Total South American corn production was increased by 2.1 per cent at 176.0 million tonnes.
A report said Ukraine’s 2022/23 corn output was projected to be 15.0 million to 17.0 million tonnes, with 10.0 million for export.
WHEAT futures were mixed on Wednesday, with gains in Kansas City and Minneapolis while Chicago was steady to lower.
The trade projected weekly wheat export sales of 300,000 to 600,000 tonnes.
Algeria issued a tender for 200,000 to 400,000 tonnes of durum.
Ukraine’s wheat production for 2022/23 was projected to be 12.0 million to 15.0 million tonnes, with 7.0 million for export. The country’s total grain production was placed at 35.0 million to 40.0 million tonnes.
