WINNIPEG – The ICE Futures canola market was pulled down on Wednesday due to the latest acreage figures from Statistics Canada (StatCan) and weakness in U.S. grain markets.
StatCan projected 22.08 million acres of canola to be planted in 2023, representing a 3.2 per cent increase from the year before. Prices for Chicago soyoil and European rapeseed were both lower. Meanwhile, Malaysian palm oil was higher and crude oil gained more than US$1 per barrel.
At mid-afternoon, the Canadian dollar fell more than four-tenths of a United States cent compared to Tuesday’s close.
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The U.S. Department of Agriculture (USDA) will release its acreage and quarterly grain stocks reports on Friday.
About 26,470 canola contracts were traded on Wednesday, which compares with Tuesday when 34,852 contracts changed hands. Spreading accounted for 11,856 of the contracts traded.
CORN dropped for the fifth straight session on Wednesday on the Chicago Board of Trade (CBOT), with the September contract hitting its lowest price since June 9.
Statistics Canada (StatCan) projected a 5.5 per cent increase in planted corn acres compared to last year at 3.8 million. The seeded corn area in Manitoba jumped 46.3 per cent to nearly 554,000 acres. Ontario reported a decline of 0.7 per cent at 2.3 million.
The average trade estimate for planted corn area in the United States is 91.85 million acres ahead of Friday’s acreage estimates report from the U.S. Department of Agriculture.
Ethanol producers in the U.S. averaged 1.052 million barrels per day for the week ended June 23, same as last week, with stocks up 175,000 barrels at 22.98 million.
The USDA announced a large private sale of 170,700 tonnes of corn to Mexico this morning.
The August SOYBEAN contract suffered its biggest one-day loss since May 30.
Soybean acres in Canada are expected to rise by 6.8 per cent to 5.6 million acres. Ontario farmers planted 2.9 million, down 5.4 per cent from last year. However, soybean acres in Manitoba jumped 40.6 per cent to 1.6 million and Quebec planted a record one million.
The trade expected U.S. soybean planted area to be 87.67 million on average.
Abiove raised its Brazilian soybean export forecast 1.3 million tonnes to 97 million, adding 200,000 tonnes of crush at 53.2 million as well as 500,000 tonnes of soymeal exports at 21.9 million.
Oils and Fats International projects European Union soybean production to go up 16 per cent to 2.8 million tonnes this year.
U.S. WHEAT futures fell by at least 27 U.S. cents per bushel with Kansas City hard red wheat being hit the hardest.
StatCan projected total wheat acres at 26.9 million, the largest area since 2001 and up 6.7 per cent from last year. Spring wheat area went up eight per cent to 19.5 million while winter wheat area jumped 20.1 per cent at 1.4 million. Durum area increased 0.5 per cent to six million.
The USDA is expected to project U.S. wheat acreage at 49.66 million.
In a traders and analysts survey, Ukraine’s 2023 wheat production may be 24 million tonnes, compared to the government’s estimate of 17.5 million.
