The ICE Futures canola market was weaker on Wednesday, with profit-taking after recent gains behind some of the selling pressure.
Widespread Prairie rains contributed to the declines as drought concerns eased. Increased farmer selling, a lack of significant export demand and expectations for large ending stocks also weighed on values.
Losses in the Chicago soy complex were also bearish for canola, although European rapeseed futures held onto small gains.
There were an estimated 54,616 contracts traded on Wednesday, which compares with Tuesday when 73,055 contracts traded. Spreading accounted for 24,256 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade corrected lower on Wednesday after climbing to multi-month highs earlier in the week. Positioning ahead of the United States Department of Agriculture’s monthly supply/demand report on Friday accounted for some of the activity.
Average trade estimates call for increased U.S. soybean production and ending stocks in 2024/25, with the projected carryout as much as 100 million bushels above the 339 million bushels expected for the current marketing year.
While rains have slowed spring seeding in parts of the U.S., farmers should make good progress over the next few weeks with the moisture beneficial for production in the long run.
Heavy flooding in Brazil has delayed the last of the soybean harvest and likely cut into production. South American crop estimates will also be followed closely in Friday’s USDA report– as the USDA is still thought to be overstating the size of Brazil’s crop.
CORN was down with follow-through selling after Tuesday’s drop from nearby highs.
U.S. corn ending stocks are also expected to be up in 2024/25 compared to the current marketing year.
U.S. ethanol production dipped slightly in the past week, down by 22,000 barrels per day to come in at 965,000 barrels per day. Stocks of the renewable fuel dropped by 1.3 million barrels, now at 24.2 million barrels.
WHEAT was pressured by continued profit-taking after recent gains. Improving conditions for the U.S. winter wheat crop weighed on values.
However, concerns with the state of Russia’s crop provided some support given the frost damage reported in two key wheat growing regions of the country.
