By Marlo Glass, MarketFarm
WINNIPEG, April 1 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished lower on Wednesday.
Considerable weakness in Chicago soyoil was characterized as an “overwhelmingly negative factor” for canola prices. At market close, soyoil was down by over a penny. In comparison, canola prices held fairly steady.
A weaker tone to the Canadian dollar provided support to values. The dollar was at 70.3 cents at midday.
Spreading activity was also a supportive factor, as traders sold oil and bought canola.
On Wednesday, 15,451 contracts were traded, which compares with Tuesday when 40,578 contracts changed hands. Spreading accounted for 10,092 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower at midweek.
Market expectations for soybeans crushed in February range from 175 to 179 million bushels, which would be the largest February crush on record.
Yesterday, the United States Department of Agriculture (USDA) released grain and oilseed stocks as of March 1. Soybean stocks have dropped by 17 per cent to total 2.25 billion bushels, which was higher than market expectations.
CORN futures were weaker on Wednesday.
Data from the Energy Information Administration showed ethanol production was lower by 165,000 barrels per day last week. That’s the largest week-over-week drop since 2010. Ethanol production averaged 840,000 barrels per day, which was the lowest rate of weekly production since 2013. Ethanol stocks were higher by 1.57 million barrels despite the production cut.
WHEAT futures were broadly lower on Wednesday.
Marketing year to date wheat shipments are ahead of last year’s pace by approximately 1.6 million tonnes.
The USDA called for planted wheat acres to slip one per cent in 2020 to 44.66 million. That’s the lowest amount since 1919.