By Glen Hallick, MarketsFarm
WINNIPEG, April 15 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Wednesday, as the Canadian dollar lost ground.
The loonie was at 71.04 U.S. cents, compared to Tuesday’s close of 71.92. Declines in the North American stock markets, and the inability of crude oil prices to gain upward momentum ended the rally for the dollar.
Gains in canola were tempered by lower values for Chicago soyoil and European rapeseed.
There were 25,992 contracts traded on Wednesday, which compares with Tuesday when 24,714 contracts changed hands. Spreading accounted for 18,932 contracts traded.
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Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 459.40 up 2.20
Jul 466.80 up 3.10
Nov 473.70 up 2.80
Jan 479.20 up 2.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, as the inability of crude oil prices to increase has kept a lid on commodities.
The National Oilseed Processors’ Association (NOPA) in the United States reported the March soybean crush exceeded 181.0 million bushels for a new monthly record. Monthly soymeal exports almost reached 974,000 tonnes. Soyoil stocks were just short of 1.9 billion pounds following a 2.2 per cent drop.
Reports stated the soybean shortage in China was beginning to ease as more shipments arrive from Brazil. The shortage was caused by several factors, including worker shortages at China’s ports, rainy conditions in Brazil slowing the loading of vessels, and delays in transporting soybeans to Brazil’s ports. Although China’s weekly stocks doubled to more than 487,000 tonnes, its weekly stockpile was still very low at 3.67 million tonnes.
Despite those delays in Brazil, soybean exports remain at a record pace in April. An estimate from ANEC, the association that tracks Brazil’s grain and oilseed exports, forecast shipments to reach 14.5 million tonnes, which would top the 12.6 million tonnes exported in March. ANEC said about 72 per cent of the soybean exports in March went to China and expects a similar number in April.
CORN futures were lower on Wednesday, as ethanol production is down and stocks are up.
The U.S. Energy Information Administration (EIA) reported ethanol production was at 570,000 barrels per day (BPD) for the week ending April 10. That’s a drop of 102,000 BPD from the previous week. However, ethanol stocks rose to 27.5 million barrels due to sharp declines in demand. That’s 4.8 million barrels more than this time last year.
Also, U.S. ethanol producers are unhappy with the international agreement to slash global crude oil production by 13 per cent, according to a report. Crude prices remain far below their levels prior to the Saudi Arabia/Russia price war, which still makes ethanol production unprofitable.
The USDA reported that North Dakota farmers upped their progress on the corn harvest by two points, to now 83 per cent complete.
Speculation has been growing that more U.S. farmers could take prevent planting this year, according to a report.
WHEAT futures were lower on Wednesday, as the U.S. dollar is gaining strength in the current global situation.
U.S. mills reported they have good wheat supplies at this time.
European Union (EU) soft wheat exports hit 26.7 million tonnes so far in 2019/20, which is up almost 70 per cent from this time last year.
The Russian government said yesterday that it will sell up to 80 per cent of its grain reserves to supply domestic demand. Already, about 136,000 tonnes of wheat were been sold.
APK-Inform forecast Ukraine wheat exports to increase by 2.6 per cent this year, reaching 19.5 million tonnes.
