Glacier FarmMedia MarketsFarm — The ICE Futures canola market had its best trading day in 2024 on Wednesday, finding some support from vegetable oils.
Agriculture and Agri-Food Canada (AAFC) lowered its production forecast for 2024-25 canola to 18.1 million tonnes on Tuesday, which compares with the February estimate of 18.4 million. Projected carryout for the upcoming marketing year was reduced by 300,000 tonnes, to 1.65 million.
Chicago soyoil, Malaysian palm oil and European rapeseed were higher. Crude oil prices dropped while the United States Federal Reserve announced no immediate changes to its key interest rates.
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At mid-afternoon, the Canadian dollar was up one-quarter of a U.S. cent compared to Tuesday’s close.
There were 69,761 canola contracts traded on Wednesday, which compares with Tuesday when 43,578 contracts changed hands. Spreading accounted for 41,630 of the contracts traded.
SOYBEAN contracts at the Chicago Board of Trade (CBOT) had their best day on the market since late November, with assistance from short covering by the funds. May, July and August contracts all gained more than 21 United States cents per bushel.
The U.S. Department of Agriculture (USDA) reported a sale of 120,000 tonnes of new crop soybeans to unknown destinations this morning.
Chinese soybean imports from Brazil grew by 211 per cent year-by-year over the first two months of 2024 at 6.96 million tonnes. However, U.S. imports fell by nearly half during the same period at 4.96 million. Total soybean imports by China were at a five-year low of 13.04 million.
The May CORN contract was on the negative side of unchanged, while the July contract remained steady. The former has not seen its price change by 10 U.S. cents per bushel or more in one day since mid-January.
The U.S. Energy Information Administration (EIA) reported 1.046 million barrels of ethanol production on average per day for the week ended March 15, up 22,000 from last week. Ethanol stocks rose 227,000 barrels at 26 million.
China imported 4.1 million tonnes of corn from Brazil during the first two months of 2024 according to Chinese customs data, marking a 178 per cent jump from one year ago. However, corn imports from the U.S. dropped by two-thirds at 767,000 tonnes.
The USDA’s attache in Mexico City estimated Mexico’s corn production for 2024-25 at 25 million tonnes, seven per cent more than last year due to higher planted area.
Grain trade group Coceral raised its combined European Union/United Kingdom corn crop forecast at 64.3 million tonnes, up three per cent from last year.
The EU extended Ukrainian corn’s tariff-free status to June 2025, but it also added import limits.
All three major U.S. WHEAT varieties showed some weakness on Wednesday, with Chicago wheat having the biggest losses.
Agriculture and Agri-Food Canada (AAFC) raised its forecast for 2024-25 Canadian wheat production by 667,000 tonnes at 34.59 million, with carryout up 200,000 at 4.4 million, all higher than last year.
Coceral cut its forecast for its 2024 EU/UK soft wheat crop by 5.4 million tonnes at 134.1 million due to record rainfall, less than the 140 million tonnes produced last year.
Japan is seeking 119,000 tonnes of food-quality wheat from the U.S., Canada or Australia.
Algeria is believed to have tendered for 200,000 tonnes of durum wheat.
