By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 11 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished higher on Wednesday, due to spillover from comparable edible oils and improvements in crush margins.
There were solid gains in European rapeseed and Malaysian palm oil, as well as in Chicago soybeans and soyoil. However the latter two pulled back from earlier highs. Chicago soymeal ended the day with a loss.
ICE canola crush margins stepped away from yesterday’s historic lows thanks to a rise of C$9 to C$10 per tonne for the November-October and November-December contracts. That also led to an increase in trading volumes.
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After slipping above 80 U.S. cents earlier, the Canadian dollar was at 79.96 U.S. cents compared to Tuesday’s close of 79.74.
There were 14,871 contracts traded on Wednesday, which compares with Tuesday when 13,294 contracts changed hands. Spreading accounted for 7,646 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 889.00 up 10.70
Jan 877.60 up 13.20
Mar 862.50 up 12.50
May 843.50 up 11.10
SOYBEAN futures at the Chicago Board of Trade (CBOT) were mostly higher on Wednesday, ahead of tomorrow’s monthly supply and demand estimates from the United States Department of Agriculture.
The World Agricultural Supply and Demand Estimates (WASDE) are expected to see 2021/22 soybean production to come in at 4.38 billion bushels, down from the USDA’s July estimate of 4.41 billion. The department is scheduled to release the report at 11 am CDT.
The USDA reported another sale of 132,000 tonnes of soybeans to China, with delivery during the 2021/22 marketing year. It’s believed that China has completed its purchases from Brazil and has turned to the U.S.
The DTN Crop Tour projected soybean yields in Kansas to be 43 bushels per acre (bu/ac.) and 50 for Missouri.
The U.S. weather forecast has called for a chance of rain next week for the western soybean growing states.
CONAB placed Brazil soybean production for 2020-21 at 135.98 million tonnes, up slightly from the agency’s July estimate. In 2019/20, Brazil produced 124.85 million tonnes of soybeans.
The Malaysian Palm Oil Board report the country’s palm oil stocks dropped 7.3 per cent from July at 1.5 million tonnes. Also, production fell 5.2 per cent since June due to an ongoing labour shortage. Malaysia’s production for 2021 has been projected to slip by nearly six per cent at 18 million tonnes.
CORN futures were higher on Wednesday, due to gains in crude oil.
Trade expectations have called for 2021/22 U.S. corn production to be around 15 billion bushels. In July, the USDA estimate was at 15.17 billion.
Ethanol production in the U.S. was reported to be 986,000 barrels per day (BPD) as of Aug. 6. This marked the first time since May that production slipped under one million tonnes. Ethanol stocks were at 22.3 million barrels.
The DTN tour projected corn yields in Kansas to be 147 bu/ac. and 171 for Missouri.
CONAB dropped its estimate of Brazil corn production for 2020-21 by 7.2 per cent at 86.65 million tonnes. In comparison, the country’s 2019/20 corn harvest reaped 102.59 million tonnes.
WHEAT futures were steady to lower on Wednesday, with Chicago unchanged and small declines for Kansas City and Minneapolis.
The markets forecast total U.S. wheat production for 2021/22 to be 1.72 billion bushels. That would down slightly from the USDA’s call of 1.75 billion last month.
As of Aug. 9, Russia’s wheat harvest reached 39.5 million acres that have been combined, up from 36.8 million. The country agriculture ministry placed yields at 53.5 bu/ac. versus 58.5 last year.
