By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 1 (MarketsFarm) – For the third consecutive day, Intercontinental Exchange (ICE) canola futures were lower, but came away from much larger declines earlier in the session, while the more deferred positions finished on a positive note.
Weakness in the Chicago soy complex kept canola down, but the complex also came away from steeper losses. Declines in European rapeseed and Malaysian palm oil put additional pressure on the Canadian oilseed.
An analyst suggested that cash prices for canola could remain strong, provided there’s excellent demand from buyers, despite canola retreat in the market.
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Recent rains across the Prairies, with more in the forecast over the coming days, pose a threat to crops waiting to be harvested. Quality issues could arise with the additional moisture. Otherwise the rain should be helpful to still developing crops such as corn and soybeans.
At mid-afternoon, the Canadian dollar was relatively stead, which provided little direction to canola. The loonie was at 79.22 U.S. cents compared to Tuesday’s close of 79.26.
There were 18,925 contracts traded on Wednesday, which compares with Tuesday when 29,210 contracts changed hands. Spreading accounted for 14,094 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 890.80 dn 4.50
Jan 876.10 dn 4.30
Mar 858.00 dn 2.20
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, but came away from larger losses earlier in the session.
Rain over the United States Midwest will help soybeans as well as other crops that are still developing.
Damage to several loading facilities along the Mississippi River, due to Hurricane Ida, remain inoperative which will delay shipping movements.
The U.S. Department of Agriculture reported the July crush used 166 million bushels of soybeans. That’s 12.4 per cent lower than in July 2020 and only one million above trade expectations. Soyoil production came to 1.58 billion pounds, down five per cent from July 2020. The U.S. canola crush in July amounted to nearly 146,000 tons, dropping nearly 28 per cent from the previous July.
A Farm Futures survey has projected 2022/23 planted U.S. soybean acres at 90.78 million. That’s would be up 3.7 per cent from those in 2021/22.
A report stated that Brazil soybean growers have sold 62 per cent of their 2021/22 crop and that they are unwilling to sell more of it in case hot and dry conditions strike the country again. Also, the growers indicated they’re waiting for soybeans to hit US$14 per bushel.
Today marked the first day of the 2021/22 marketing year for soybeans and corn.
CORN futures were down on Wednesday, in sympathy with soybeans.
The U.S. Energy Information Administration (EIA) reported ethanol production for the week ended Aug. 27 averaged 906,000 barrels per day. That was a drop of three per cent from the previous week.
The USDA said corn used for ethanol was 449 million bushels, up six percent from a year ago and right on the average market prediction.
The Farm Futures survey has projected planted U.S. corn acres for 2022/23 to be 94.3 million. That would be an increase of 1.7 per cent over those seeded in 2021/22.
A larger corn crop in China is very likely to mean less reliance on imports, including those from the U.S.
A report stated Brazil corn exports for 2021/22 will be closer to 17 million tonnes, compared to the USDA estimate of 23 million.
WHEAT futures were lower on Wednesday, due to spillover from soybeans and corn.
The U.S. Surface Transportation Board (STB) has denied Canadian National Railway’s (CN) bid to acquire the Kansas City Southern Railway (KCS). The ruling requires CN to revise the takeover’s terms or lose out on acquiring KCS. Rival Canadian Pacific Railway (CP) is also looking to purchase KCS.
SovEcon lowered its call on 2021/22 Russian wheat production by 800,000 tonnes at 75.4 million.
