Glacier FarmMedia MarketsFarm — The ICE Futures canola market couldn’t hold onto early gains and closed lower on Wednesday due to a lack of support from comparable oils.
Crude oil and Chicago soyoil were both down, while European rapeseed and Malaysian palm oil were lower in the nearby contracts.
At mid-afternoon, the Canadian dollar lost more than one-tenth of a United States cent compared to Tuesday’s close.
There were 46,880 canola contracts traded on Wednesday, which compares with Tuesday when 61,170 contracts changed hands. Spreading accounted for 21,338 of the contracts traded.
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July WHEAT contracts rose by more than 10 United States cents per bushel with Kansas City hard red wheat seeing the largest gains on the Chicago Board of Trade (CBOT) on Wednesday.
While India’s wheat inventories dropped to their lowest levels in 16 years, the country has bought 11.92 million tonnes of wheat from farmers so far this season, four million less than last year. Rainfall in the northern states have delayed purchases, especially from Punjab where sales are down by half compared to last year. Unless India procures 30 million tonnes, it may have to import wheat for the first time in seven years.
The U.S. Department of Agriculture attache in Cairo estimated Egyptian wheat imports for 2024-25 at 11.2 million tonnes, up two per cent from this year.
Jordan issued an international tender for 120,000 tonnes of milling wheat which closes April 30.
SOYBEANS were relatively steady overall, with small losses in the old crop contracts and slight upticks in the new crop positions. For the July contract, it was the first time in three days it ended the session lower.
Heavy rains are expected for soybean growing regions in the U.S. later this week, which could hinder planting progress.
Meanwhile in Brazil, the soybean harvest is at least 87 per cent complete according to domestic sources, despite dryness in the central part of the country and wetness in the south.
Harvesting conditions in Argentina are also expected to be wet in the coming days.
The July CORN contract ended the day lower for the first time in three sessions, despite briefly trading at its highest level since April 1.
The U.S. Energy Information Administration tallied domestic ethanol production for the week ended April 19 at an average of 954,000 barrels per day, slipping 29,000 from last week. Ethanol stocks were down 347,000 barrels from the week before at 25.733 million.
The Mexican economy minister said on Tuesday that a resolution to the trade dispute with the U.S., which has stemmed from Mexico limiting genetically modified (GM) corn imports should come in September. The U.S. requested a panel last year saying Mexico’s measures violate the USMCA. However, GM yellow corn in feed, which accounts for most of Mexico’s corn imports from the U.S., will still be allowed.
Trade group Sindiracoes slightly lowered its Brazilian animal feed production estimate to 88.3 million tonnes, up 2.4 per cent from last year. Sixty per cent of Brazilian animal feed comprises of corn, while 21 per cent is soymeal.
