By Glen Hallick, MarketsFarm
WINNIPEG, March 8 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Wednesday, due in part to an increase in farmer selling.
Also, canola was pressured by declines in European rapeseed, Malaysian palm and Chicago soymeal. Upticks in Chicago soybeans and soyoil helped to stem further losses in the Canadian oilseed. Decreases in global crude oil prices weighed on vegetable oil values.
A trader cautioned that the large canola crop in Australia is very likely to cut into Canadian exports, leading to an increase in ending stocks.
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The United States Department of Agriculture (USDA) issued its March report on world markets and trade for oilseeds, still showing its call on Canadian canola production at 19 million tonnes. Meanwhile, the USDA raised global canola/rapeseed output by 1.44 per cent at nearly 86.31 million tonnes.
The Canadian dollar was weaker at mid-afternoon Wednesday with the loonie at 72.47 U.S. cents, compared to Tuesday’s close of 72.90.
There were 30,251 contracts traded on Wednesday, which compares with Tuesday when 19,651 contracts changed hands. Spreading accounted for 15,578 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) bumped up on Wednesday, due to slightly smaller domestic ending stocks.
The USDA issued its monthly supply and demand estimates, and the carryout for 2022/23 soybeans slips to 210 million bushels.
As for South America, the USDA slashed 19.5 per cent from its call on 2022/23 Argentina soybean production, now at 33 million tonnes. The department kept its projection for Brazil soybeans at 153 million tonnes.
The USDA also released its monthly census and January soybean exports came in at 8.56 million tonnes, slightly below that for the previous January.
Indonesia is expected to see a declines in its palm oil exports as more of it is redirected into domestic biodiesel production. Last month, Indonesia raised its required blend from 30 to 35 per cent. Also, palm oil output in the country is projected to increase 2.6 per cent in 2023 at 47.7 million tonnes.
Palm oil production in Malaysia is expected to increase 3.3 per cent at 19 million tonnes.
CORN futures were lower on Wednesday, due to a higher carryout and disappointing January exports.
In the S&D report, the USDA raised 2022/23 corn ending stocks to 1.34 billion bushels.
Production for Argentina was chopped by almost 15 per cent at 40 million tonnes but held Brazil at 125 million tonnes.
January exports of U.S. corn were 3.17 million tonnes, a tumble of 45 per cent when compared to January 2022.
The U.S. Energy Information Administration (EIA) reported ethanol production for the week ended March 3 was relatively steady, averaging approximately one million barrels per day. Ethanol stocks expanded to 25.32 million barrels.
Ahead of talks with the U.S. on GMO corn, Mexico reiterated its resolve to hold firm on its policy to ban or limit such imports.
WHEAT futures were mixed on Wednesday, with double-digit losses for Chicago and Minneapolis but a small uptick in Kansas City.
The USDA held its call on U.S. wheat ending stocks at 568 million bushels. The department trimmed its outlook for the global wheat carryover by 0.7 per cent at 267.2 million tonnes.
January wheat exports amounted to 1.78 million tonnes, up three per cent from a year ago.
SovEcon reduced its forecast for Russian wheat exports for 2022/23 by 0.2 per cent at 44.1 million tonnes.
United Nations Secretary-General Antonio Guterres was scheduled to meet with Ukrainian President Volodymyr Zelenskyy today to discuss extending the Black Sea export deal, which expires on March 18.
