By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 6 (MarketsFarm) – Intercontinental Exchange canola futures were down hard again on Wednesday, as the selloff in the oilseed continued.
An analyst said the funds and farmers are selling their canola, due to Statistics Canada raising this year’s canola production by 900,000 tonnes at 18.3 million. The analyst added major importers have reduced their purchases, believing supplies were now at a comfortable level. As well, he said there are those in the trade who believe canola output is greater than what StatCan reported.
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Losses in comparable oils put additional pressure on canola. Sharp declines in global crude oil prices weighed on vegetable oil values. In turn, that led to declines in the Chicago soy complex, European rapeseed and Malaysian palm oil.
The Canadian dollar was relatively steady at mid-afternoon Wednesday with the loonie at 73.60 U.S. cents compared to Tuesday’s close of 73.64.
There were 52,974 contracts traded on Wednesday, which compares with Tuesday when 43,374 contracts changed hands. Spreading accounted for 32,358 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jan 649.90 dn 15.70 Mar 659.30 dn 13.80 May 667.70 dn 12.80 Jul 674.50 dn 11.80
SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, due to pressure from sharp declines in crude oil prices.
The United States Department of Agriculture announced a private sale for 136,000 tonnes of 2023/24 soybeans to China.
The U.S. Census Bureau reported October soybean exports of 9.5 million tonnes, close to what was exported the previous October. Soymeal exports came to 1.19 million tonnes and those for soyoil were 5,900 tonnes.
The USDA is set to publish its supply and demand estimates on Friday at 11 am CST. Only small changes are expected in the report’s data for major crops.
Reuters said the Brazilian state of Parana has received 21 inches of rain during the October-November timeframe and the wettest in 25 years. Parana’s soybean crop was reportedly 86 per cent good to excellent.
CORN futures were lower on Wednesday, following soybeans to the downside.
The U.S. Energy Information Administration reported ethanol production for the week ended Dec. 1 averaged 1.08 million barrels per day, down 65,000 from the previous week. Ethanol stocks rose slightly to 21.44 million barrels.
Census data placed U.S. corn exports for October at 2.81 million tonnes. Ethanol exports were 117.09 million gallons, up 37 per cent from a year ago.
Rumours in the trade have China cancelling up to 10 vessels of Brazilian corn in favour of U.S. corn.
The corn crop in Parana was reported to be 80 per cent good to excellent.
WHEAT futures were mixed on Wednesday, with a small increase in Chicago wheat, the only positive note in today’s trading.
China made its third consecutive large purchase of U.S. soft red winter wheat in as many days. Today’s acquisition was for 372,000 tonnes, which brought China’s total to 1.01 million.
The U.S. census placed October wheat exports at 1.07 million tonnes, with this year’s shipments totaling 7.25 million, the slowest pace since 1969/70.
Ukraine reported seven million tonnes of cargo has left Odessa since the Russia pulled out of the Black Sea Grain Corridor agreement. Of the total, five million tonnes were grain.
Egypt bought 60,000 tonnes of wheat from Ukraine plus 120,000 tonnes from Russia. Algeria is said to have purchased 500,000 tonnes of durum from Australia and Canada, with the latter apparently supplying 300,000 tonnes.
