WINNIPEG, March 17 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Wednesday, due to profit-taking.
An analyst said that cash canola supplies in Canada have pretty much dried up and in order to attract new buyers, canola prices need to come down.
He added that with China currently buying little in the way of oilseeds from the United States, declines in Chicago soybeans have spilled over to canola.
After pulling back for most of the day, the Canadian dollar turned around at mid-afternoon. The loonie was at 80.52 U.S. cents compared to Tuesday’s close of 80.29.
There were 29,552 contracts traded on Wednesday, which compares with Tuesday when 36,689 contracts changed hands. Spreading accounted for 16,658 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 779.30 dn 16.00
Jul 731.60 dn 12.60
Nov 624.50 dn 8.50
Jan 625.30 dn 9.40
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday due to weather conditions.
The United States Midwest and Southern Plains could see above normal precipitation over the next six to 10 days, which would help alleviate concerns over dryness.
Improved weather in Brazil is permitting more progress in the soybean harvest. Consultancy ABIOVE projected the country’s soybean production at 134.8 million tonnes and exports of 84 million tonnes. Soybean and Corn Advisor’s Dr. Michael Cordonnier maintained his projection at 132 million tonnes.
Meanwhile, rain in Argentina has been aiding that country’s crop conditions. Cordonnier held his soybean production forecast for the country at 46 million tonnes.
January palm oil exports out of Indonesia were 19.6 per cent high than those in January 2020.
CORN futures were higher on Wednesday following sales to China.
The USDA reported another large private sale of corn to China, this one for more than 1.22 million tonnes. This sale comes after yesterday’s sale for over 1.16 million tonnes. Delivery for both purchases is to be during the current marketing year.
Some analysts have predicted China to import up to 40 million tonnes of corn in 2021/22. That’s far above the USDA’s call for 24 million tonnes.
Rains in the Brazil continued to slow the planting of its safrinha corn crop. However, Cordonnier kept his prediction of Brazilian corn production at 105 million tonnes, and 45.5 million for Argentina.
WHEAT futures were lower on Wednesday, in sympathy with soybeans.
A report said Egypt currently has four and half to five months’ worth of wheat stocks. The country’s wheat harvest was estimated to reap 3.5 million tonnes. Egypt is the world’s largest wheat importer.
Russia indicated that it could end its export tax on wheat, should its market stabilize and domestic food prices fall.
