WINNIPEG – The ICE Futures canola market ended the day lower on Wednesday, taking some direction from Chicago soyoil.
Despite this, European rapeseed and Malaysian palm oil were both higher. After its rally on Tuesday, crude oil made gains once again, but U.S. crude oil inventories rose to their highest level since June 2021, putting pressure on prices.
At mid-afternoon, the Canadian dollar was mostly steady compared to Tuesday’s close.
About 25,350 canola contracts were traded on Wednesday, which compares with Tuesday when 30,290 contracts changed hands. Spreading accounted for 20,824 of the contracts traded.
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The U.S. Department of Agriculture (USDA) released its monthly supply/demand estimates on Wednesday with little to no surprises found within their totals.
CORN prices ended Wednesday in the black for the third time in the last four sessions.
The USDA raised its corn carryout projection by 25 million bushels from January’s estimate to 1.267 billion, in line with pre-report trade estimates.
Brazilian corn production was left unchanged at 125 million tonnes, while Argentine corn production was cut by five million tonnes to 47 million due to drought.
The U.S. Energy Information Administration reported that one million barrels of ethanol were produced per day on average during the week ended Feb. 3, down 28,000 barrels per day from the previous week. Meanwhile, ethanol stocks dropped 25,000 barrels to 24.417 million.
SOYBEAN prices ended its three-day slide on Wednesday with modest gains.
U.S. soybean carryout was estimated by the USDA at 225 million bushels, up 15 million from the January report and at the high end of trade expectations.
The Argentine soybean crop was cut by 4.5 million tonnes to 41 million, while the Brazilian crop was held steady at a potential record 153 million tonnes.
Global soybean stocks were projected at 102.3 million tonnes, down 1.49 million from the January estimate.
All three major U.S. WHEAT varieties settled in positive territory.
Projected ending stocks for U.S. wheat were estimated to be 568 million bushels, one million more than the January estimate, but 11 million less than the average trade estimate.
The USDA also estimated world wheat ending stocks at 269.3 million tonnes, 900,000 tonnes higher than the January projection.
The U.S. Southern Plains are expected to see rain over the next seven days with heavy amounts in Kansas, Oklahoma and Texas.
China is auctioning off 140,000 tonnes of wheat from state reserves on Feb. 15.
