WINNIPEG — The ICE Futures canola market was in recovery mode on Wednesday, moving higher after Tuesday’s losses with mostly positive sentiment in comparable oils.
Chicago soyoil climbed upwards with European rapeseed, but Malaysian palm oil was mixed. Crude oil was lower due to economic concerns in China and the European Union.
Prior to the release of Statistics Canada’s (StatCan) supply/demand estimates on Tuesday, the average trade guess placed Canadian canola production for 2023-24 at 17.4 million tonnes, 730,000 less than the previous year.
At mid-afternoon, the Canadian dollar was up one-tenth of a U.S. cent compared to Tuesday’s close. StatCan reported on Wednesday that retail sales in the country increased by 0.4 per cent in July.
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Rain was expected for parts of Alberta, as well as southern parts of Saskatchewan and Manitoba today.
About 27,293 canola contracts were traded on Wednesday, which compares with Tuesday when 42,648 contracts changed hands. Spreading accounted for 14,946 of the contracts traded.
The December CORN contract had its first positive day in three sessions on Wednesday, and its largest gain on the Chicago Board of Trade (CBOT) since July 24.
The trade is making an average guess of 14.8 million tonnes of new crop Canadian corn production, compared to 14.54 million the previous year, prior to Tuesday’s Statistics Canada (StatCan) report.
The ProFarmer Crop Tour measured Indiana’s average corn yield at 180.9 bushels per acre, 1.5 per cent below the three-year average. Nebraska’s was 167.2 bushels per acre, 2.8 per cent below average.
The United States Energy Information Administration reported an average of 1.048 million barrels of ethanol produced per day for the week ended Aug. 18, 21,000 less than the week before. Ethanol stocks were tightened by 645,000 barrels to 22.79 million.
After dropping on Tuesday, November SOYBEANS rose for the fifth time in six sessions as temperatures soar in much of the U.S. Midwest.
The average trade guess for Canadian soybean production is 6.7 million tonnes, compared to 6.5 million last year.
In a nine square foot area, Nebraska’s average soybean pod count was 1,160 according to the ProFarmer Crop Tour, nine per cent more than last year but three per cent below the three-year average. Indiana’s was 1,310, up 12.4 per cent from last year and up 6.6 per cent from the average.
The U.S. Department of Agriculture (USDA) announced a private sale of 100,000 tonnes 2023-24 soybeans to unknown destinations this morning.
The vice-president of China’s Wellhope Foods said that he believes Chinese soybean imports will total 100 million tonnes per year over the next five years.
All three major U.S. WHEAT varieties made gains on Wednesday, with December Minneapolis spring wheat closing above US$8 per bushel for the first time in three sessions.
The trade expects StatCan to project new crop Canadian wheat production at an average of 30.4 million tonnes, down 3.4 million from last year. Spring wheat would be at 23.1 million and durum at 4.3 million.
New crop wheat exports from the European Union have totalled 4.06 million tonnes as of Aug. 20, below the 5.12 million from last year.
Turkish President Recep Tayyip Erdogan met with Russian President Vladimir Putin today to discuss a possible new grain corridor arrangement.
