By Glen Hallick, MarketsFarm
WINNIPEG, Feb. 17 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola hit new highs on Wednesday, showing a measure of independent strength amid steep declines in Chicago soyoil.
There was also pressure from losses in European rapeseed, but additional support came from stronger Malaysian palm oil.
Shrinking canola supplies remain a supportive factor, holding the possibility of price rationing over the market.
At mid-afternoon the Canadian dollar was lower. The loonie was at 78.70 U.S. cents after closing Tuesday at 78.84.
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There were 20,453 contracts traded on Wednesday, which compares with Tuesday when 22,364 contracts changed hands. Spreading accounted for 10,698 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 717.60 up 8.40
Jul 685.60 up 9.90
Nov 578.70 up 5.10
Jan 579.60 up 4.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly lower on Wednesday, ahead of the tomorrow’s United States Department of Agriculture annual outlook conference.
Trade projections for planted soybean acres in the U.S. for 2021 range from 87 million to 92 million. About 89 million acres were planted in 2020, according to the USDA.
Due to the Presidents’ Day holiday the USDA will delay its weekly export sales report to Friday.
Expectations are U.S. soybean exports to China could reach 36 million tonnes in 2020/21, slightly below the record of 36.1 million tonnes set in 2016/17.
Wet weather has continued to slow the soybean harvest in Brazil.
CORN futures were relatively steady on Wednesday, lacking a clear direction.
Projections for planted corn acres in the U.S. are 91.5 million to 96 million. In 2020, 90.8 million acres were seeded.
The U.S. Energy Information Administration has postponed its weekly ethanol report to Friday due to Presidents’ Day.
As with the soybean harvest, corn planting in Brazil has been at a slow pace due to wet conditions.
WHEAT futures were lower on Wednesday, with double-digit losses in the winter wheats and a smaller decline in Minneapolis spring wheat.
Unusually cold weather across much of the U.S. has the trade thinking there could be a sizeable amount of wheat winterkill.
Winterkill is also an issue in Europe and the Black Sea region, where snow cover is inadequate and temperatures have turned colder.
The average trade guess for planted wheat acres in the U.S. is 45.3 million, which would be one million more than in 2020.
