By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 29 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mostly higher on Wednesday, with declines in the much more deferred positions.
Support came from a number of sources, including European rapeseed and Malaysian palm oil, of which both hit new contract highs. Also, spillover came from increases in the Chicago soy complex.
An analyst pointed to a lack of selling recently and the ongoing tight supply situation as underpinning values.
At mid-afternoon the Canadian dollar was lower as the United States dollar made some of its best gains in recent months. The loonie was at 78.47 U.S. cents, compared to Tuesday’s close of 78.86.
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Manitoba reported that its harvest of major crops reached 90 per cent finished, with canola at 94 per cent done and cereals virtually complete.
There were 28,687 contracts traded on Wednesday, which compares with Tuesday when 25,913 contracts changed hands. Spreading accounted for 19,658 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 894.20 up 8.50
Jan 883.00 up 8.00
Mar 871.60 up 6.40
May 846.40 up 1.90
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Wednesday, in anticipation of smaller stocks in the quarterly grain stocks report tomorrow.
The United States Department of Agriculture (USDA) releases the report at 11 am CDT and the trade is predicting soybean stocks to be between 145 million to 202 million bushels. A year ago stocks stood at 525 million bushels.
Prior to that, the USDA will issue its weekly export sales report, with the trade expecting soybean sales of 700,000 to 1.2 million tonnes. Soymeal is projected to come in at 50,000 to 250,000 tonnes and soyoil is to be less than 30,000 tonnes.
The department releases its grain crushings report as well as its fats and oils report on Friday at 2 pm CDT.
CHS said its grain terminal at Myrtle Grove, La. is back online using a generator after Hurricane Ida damaged the facility a month ago.
Cyclone Gulab reportedly damaged soybean and other crops in India on Sept. 26.
Russia acknowledged there was a case of African swine fever at a Miratorg facility in the Belgorod region. Miratorg is Russia’s largest pork producer.
CORN futures were higher on Wednesday, as well on expectations of tighter stocks.
Market expectations for corn stocks range from 998 million to 1.252 billion bushels. Last September’s stocks were at 1.919 billion bushels.
Corn exports sales are believed to be 400,000 to 900,000 tonnes.
The U.S. Energy Information Administration (EIA) pegged ethanol production for the week ended Sept. 24 at an average of 914,000 barrels per day (BPD). That’s a decline of 12,000 BPD, while stocks increased at 20.22 million barrels.
WHEAT futures were mixed on Wednesday, as Minneapolis turned lower while Chicago and Kansas made gains.
Projections for all wheat stocks range from 1.775 billion to 1.998 billion bushels and this time last year they were at 2.158 billion. As for tomorrow’s small grains summary, the trade has predicted the smallest amount of wheat produced in 19 years.
The U.S. is forecast to see clear skies with above normal temperatures east of the Mississippi River today, while a large storm system, stretching from North Dakota to Arkansas, will bring rain west of the river today.
SovEcon has forecast a drop in wheat planted in Russia in 2022/23. The consultancy estimated the planted area will be between 48.43 million and 49.67 million acres, with 25.95 million already in the ground.
Ukraine reported its 2022/23 winter crop is 29 per cent planted as of Sept. 27, with 16.51 million acres to be seeded.
