By Glen Hallick, MarketsFarm
WINNIPEG, July 14 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures retreated on Wednesday, as profit-taking and fresh selling weighed on values.
A Calgary-based analyst suggested the hike in canola prices cannot continue as the Canadian oilseed, “must respect the global [vegetable oil] market.” He pointed to Chicago soyoil and Malaysian palm oil, which have shown cracks in their pricing.
The heat and drought on the Prairies remained a supportive factor, at least for now. The analyst emphasized that canola prices must follow the other veg oils regardless of the unfavourable harvest ahead.
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By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures finished lower in choppy trading on Friday,…
The Canadian dollar was a pinch higher with the loonie at 80.00 U.S. cents at mid-afternoon compared to Tuesday’s close of 79.91.
There were 25,292 contracts traded on Wednesday, which compares with Tuesday when 32,899 contracts changed hands. Spreading accounted for 9,750 contracts traded.
Effective July 15, ICE will raise the regular daily limit of canola to C$50 per tonne.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 893.50 dn 23.30
Jan 984.10 dn 23.50
Mar 869.00 dn 23.50
May 849.10 dn 23.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Wednesday, as the United States Midwest is forecast to be hot and dry for the next 10 days.
Ahead of tomorrow’s report from National Oilseed Processors’ Association (NOPA), the average trade guess puts the June soybean crush at 159.84 million bushels.
The 2021/22 German rapeseed crop has been projected at 3.68 million tonnes, for a 4.7 per cent increase from 2020/21. Germany is the European Union’s largest rapeseed producer.
The Brazil government upped the country’s mandatory biodiesel blend 10 to 12 per cent, although it initially said the increase was going to be 13 per cent.
CORN futures were higher on Wednesday, also due to the weather forecast.
The U.S. Energy Information Administration said ethanol production for the week ended July 9 was 1.04 million barrels per day. That’s down 26,000 barrels per day from the previous week. Ethanol stocks dip to 21.13 million barrels.
The Brazil corn harvest was at 21 per cent complete, according to reports. That’s well short of the 36 per cent finished this time last year.
Rabobank lopped 36.4 per cent off of its estimate of Brazil 2020/21 corn exports to now 21 million tonnes.
WHEAT futures also saw steep increases on Wednesday, in concert with soybeans and corn.
North American oat crops are to shrink in 2021/22 due to the droughts in the crop’s key growing areas in the U.S. and Canada. The U.S. Department of Agriculture (USDA) said oat production in the U.S. down nearly 14 per cent at 41 million bushels. The department pegged Canadian oat production to fall 9.3 per cent at 3.9 million tonnes.
The 2021 summer wheat crop in China is projected to rise two per cent compared to last year at 134 million tonnes.
In Europe, the outlook for the 2021/22 French wheat crop is for the highest production in eight years. Meanwhile a heat wave has trimmed into Germany’s wheat crop, with production estimates 0.8 per cent lower at 22.8 million tonnes. Over in Russia, yields in the early part of that country’s wheat harvest have been lower than expected at 2.46 tonnes per hectare versus 5.43 last year.
In international purchases Egypt bought 180,000 tonnes of wheat from Romania, while Pakistan issued a tender for 500,000, Japan has called for 80,000 tonnes of feed wheat and 100,000 tonnes of barley, and Iran put out a call for 60,000 tonnes of wheat.
