WINNIPEG -– The ICE Futures canola market suffered double-digit losses for the second time in three sessions, dragged down by vegetable oils and lack of user demand.
Chicago soyoil was down by more than one United States cent per pound, while European rapeseed and Malaysian palm oil were also in the red. Crude oil also underwent a downward correction.
At mid-afternoon, the Canadian dollar lost more than one-tenth of a U.S. cent compared to Wednesday’s close.
A system will bring rainfall to Saskatchewan later today before moving to Manitoba tonight. High temperatures were expected to be in the low- to mid-20 degrees Celsius across the Prairies.
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About 31,637 canola contracts were traded on Thursday, which compares with Wednesday when 34,838 contracts changed hands. Spreading accounted for 18,084 of the contracts traded.
For the fourth straight day, the November SOYBEAN contract on the Chicago Board of Trade (CBOT) alternated between gains and losses, ending Thursday on a low note.
Prior to the United States Department of Agriculture (USDA) releasing its monthly supply/demand estimates on Sept. 12, the trade estimated the U.S. soybean yield at 50.2 bushels per acre for 4.157 billion bushels of production and 207 million bushels of ending stocks. All figures are lower than in the USDA’s August release as well as from last year’s totals except for yield.
World ending stocks for soybeans are expected to be 118.6 million tonnes, lower than the USDA’s previous estimate but higher than last year.
In July, 46.88 million bushels of U.S. soybeans were exported for a three-month high, but was still 45 per cent less than one year earlier. Meanwhile, 1.08 million tonnes of soymeal and 16,882 tonnes of soyoil were also exported.
CORN prices on the CBOT were mostly steady on Thursday and stayed below the US$5 per bushel mark.
The trade projected the average corn yield to be 173.5 bushels per acre for 15.008 billion bushels of production with ending stocks at 2.14 billion bushels. All values were lower than the USDA’s August estimates but higher than last year’s totals.
World ending stocks were also projected to be 310.1 million tonnes, also lower than both the USDA’s August projection and last year’s amount.
The U.S. Energy Information Administration (EIA) reported that 1.012 million barrels of ethanol were produced per day for the week ended Sept. 1, adding 12,000 barrels for 21.61 million in total supply.
The U.S. Census Bureau reported on Wednesday that 94.41 million bushels of corn were exported in July, down 56 million from June and was only half the volume from the previous July.
All three U.S. WHEAT varieties experienced losses with the December Chicago wheat contract dropping just below US$6 per bushel.
The trade projected U.S. carryout for wheat was at 613 million bushels, two million lower than the USDA’s estimate last month.
As for world wheat carryout, the trade’s average guess was 264.4 million tonnes, more than one million less than the USDA’s previous estimate.
In July, 63.92 million bushels of U.S. wheat were exported, up 51 per cent from June and up 19 per cent from a year ago.
Russia attacked the Ukrainian port city of Izmail on the Danube River overnight.
