By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 1 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures saw increases in the old crop months on Wednesday, while new crop positions closed slightly lower.
Support for edible oils from strong upticks in global crude oil prices evaporated by the close of the grain markets, which weakened edible oils.
Ahead of Friday’s report from Statistics Canada, trade expectations for canola production are 11.5 million to 13 million tonnes. In September the federal agency pegged production at 12.78 million tonnes.
Railcar unloads at the Port of Vancouver dropped 87 per cent during Week 16 of the marketing year, according to Quorum Corp. The report took in account the stoppage in rail traffic due to the massive deluge of rain in southern British Columbia that severed ground links for a number of days.
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At mid-afternoon the Canadian dollar was lower, with the loonie at 78.04 U.S. cents, compared to Tuesday’s close of 78.17.
There were 19,346 contracts traded on Wednesday, which compares with Tuesday when 29,731 contracts changed hands. Spreading accounted for 9,538 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 994.30 up 7.20
Mar 967.30 up 7.30
May 930.20 up 6.00
Jul 884.40 up 4.80
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Wednesday, in an attempt to turnaround from yesterday’s sharp losses.
The National Oceanic and Atmospheric Administration (NOAA) has forecast warmer and drier temperatures over the next 30 days.
After the markets closed, the United States Department of Agriculture (USDA) released its fats and oils report, showing 197 million bushels of soybeans were crushed in October, the same amount from a year ago. At 1.73 billion pounds, refined soyoil production was up five per cent from the previous October.
Brazil reported its soybean exports for November were estimated to be almost 2.29 million tonnes.
CORN futures were higher on Wednesday, following a private sale of 150,000 tonnes of corn to Colombia. Delivery is to be during the current marketing year.
The USDA issued its October grain crushings report after the markets closed, which showed 521 million bushels of corn were used. That was an increase of eight per cent compared to October 2020.
The U.S. Energy Information Administration said ethanol production for the week ended Nov. 26 was down 4.1 per cent at about 1.04 million barrels per day. Ethanol stocks inched up 0.7 per cent at 20.3 million barrels.
November corn exports out of Brazil were estimated to be 2.89 million tonnes.
Russia implemented its ammonia nitrate fertilizer export quota today. It limits shipments to 744,000 tonnes through to May 31, and about one million tonnes less than the same period last year. However contracts to Brazil, Russia’s best customer, will be honoured.
WHEAT futures were mixed on Wednesday, with gains in Chicago and Minneapolis, while Kansas City stepped back.
Canadian wheat production for 2021/22 is expected to be 19.3 million to 22.5 million tonnes. The previous year saw production at nearly 35.2 million tonnes.
Ukraine reported its wheat exports to date are 14.5 million tonnes, up 22 per cent over the same time last year. The country imposed an export limit of 25.3 million tonnes through to June.
European Union soft wheat exports are up 11.2 per cent over last year at more than 11.6 million tonnes.
