WINNIPEG – The ICE Futures canola market was higher on Wednesday, making gains after two straight days of declines.
Chicago soyoil traded higher along with European rapeseed, while Malaysian palm oil was mostly higher. Crude oil was more than US$2 per barrel lower due to the rising number of new COVID-19 cases in China.
At mid-afternoon, the Canadian dollar erased Tuesday’s gains, dropping four-tenths of a United States cent.
The U.S. Department of Agriculture (USDA) also released its monthly World Agricultural Supply/Demand Estimates (WASDE) earlier today, with the report having little effect on the markets.
Read Also
Canadian Financial Close: More gains for loonie
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar pushed higher on Tuesday, as its United States…
About 19,870 canola contracts were traded on Wednesday, which compares with Tuesday when 27,020 contracts changed hands. Spreading accounted for 12,440 of the contracts traded.
Jan 891.50 up 7.30
Mar 888.50 up 6.40
May 891.50 up 6.50
Jul 893.10 up 6.40
The United States Department of Agriculture (USDA) released its monthly World Agricultural Supply/Demand Estimates (WASDE) earlier today with no major changes to production and ending stock numbers.
Trading lower before the report’s release, CORN prices rose to unchanged at one point before settling lower.
The USDA increased domestic corn production by 35 million bushels to 13.93 billion, near the lower end of pre-report expectations with the average yield increasing by 0.4 bushels per acre to 172.3. U.S. ending stocks rose 10 million bushels to 1.182 billion, also in line with trade.
Global corn production decreased by 670,000 tonnes to 307.68 million, while global ending stocks also declined 430,000 tonnes to 300.76 million.
SOYBEAN prices were mostly unaffected by the WASDE report’s release.
The U.S. soybean production estimate increased by 33 million bushels to 4.346 billion, in line with trade. The domestic average soybean yield rose 0.4 bpa to 50.2. U.S. soybean ending stocks also increased by 20 million bushels to 220 million.
Global soybean production rose 1.22 million tonnes compared to October’s estimate to 390.99 million. The USDA raised global ending stocks by 1.65 million tonnes to 102.17 million.
Already trading lower prior to the WASDE report’s release, WHEAT prices were additionally pressured afterwards.
The USDA cut the domestic wheat production estimate by 133 million bushels to 1.65 billion. Ending stocks for U.S. wheat also went down, losing 34 million bushels to 576 million.
Globally, the USDA estimated wheat production to increase by one million tonnes from October’s estimate to 782.7 million. Global ending stocks were estimated at 267.8 million tonnes, an increase of 300,000.
