By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 29 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures closed higher on Tuesday, due a bullish report from Statistics Canada. However, gains faded from much larger increases.
StatCan pegged canola production in Canada for 2023/24 at nearly 17.6 million tonnes, falling below last year’s output of 18.7 million, but edging the average trade guess of 17.4 million.
All wheat production came in at 29.5 million tonnes versus last year’s production of 34.3 million. Of that durum was projected to be 4.3 million tonnes compared to the 5.8 million of 2022/23.
Read Also
North American Grain and Oilseed Review: Canola slightly higher
A positive turn in Chicago By Glen Hallick, MarketsFarm Glacier FarmMedia MarketsFarm – Intercontinental Exchange canola futures hung on to…
Canola received support from small upticks in Malaysian palm oil, but there was pressure from losses in the Chicago soy complex and European rapeseed.
Gains in global crude oil were fluctuating either side of US$1.00 per barrel, which still lent some support to the vegetable oils.
Temperatures across most of the Prairies was forecast to range from the mid-20 degrees Celsius into the low 30’s.
The Canadian dollar was climbing higher at mid-afternoon Tuesday, with the loonie at 73.73 U.S. cents, compared to Monday’s close of 73.55.
There were 27,014 contracts traded on Tuesday, which compares with Monday when 23,426 contracts changed hands. Spreading accounted for 8,914 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 811.80 up 2.70 Jan 818.40 up 2.60 Mar 821.20 up 2.40 May 819.60 up 2.20
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday despite bullish news.
The United States Department of Agriculture announced two private sales with both going to unknown destinations. One sale was for 246,100 tonnes of 2023/24 soybeans and the other was for 105,000 tonnes of 2023/24 soymeal.
The USDA issued its crop progress report and as of Aug. 27 soybeans dipped one point to 58 per cent good to excellent.
Dr. Michael Cordonnier of Soybean and Corn Advisor Inc. trimmed his call on 2023/24 U.S. soybean yields by one bushel per acre, now at 50 bu./ac. That translates to production of 4.13 billion bushels.
Canadian soybean production in 2023/24 was projected by Statistics Canada to bump up to 6.74 million tonnes from the 6.54 million in 2022/23.
The first notice day for September futures is Aug. 31 with long positions to be reported after the close on Aug. 30.
CORN futures were lower on Tuesday, in sympathy with soybeans.
U.S. corn was rated at 56 per cent good to excellent, slipping two points on the week.
Cordonnier cut two bu./ac. from is forecast on U.S. corn to now 173.0 bu./ac. That would bring output to 15.01 billion bushels.
The USDA attaché in Buenos Aires projected bioethanol consumption in Argentina to hit a record 1.17 billion liters in 2023/24. Almost two-thirds of the country’s bioethanol is made with corn.
AgRural placed the planting of the first corn crop in Brazil at more than seven complete.
Corn production in Canada for 2023/24 was projected by Statistics Canada to be 14.73 million tonnes, up from the previous year’s 14.54 million.
WHEAT futures were lower on Tuesday, with significant losses in the winter wheats.
U.S. spring wheat slipped one point to 37 per cent good to excellent. Its harvest advanced six points on the week at 54 per cent finished. The USDA ceased reporting on winter wheat, with its harvest finished.
At 20.77 million tonnes, Germany’s wheat crop is expected to fall more than five per cent from the five-year average.
