WINNIPEG – The ICE Futures canola market took a tumble on Thursday after a price drop in Chicago soyoil.
Soyoil fell 4.5 United States cents per pound in the January contract after the Environmental Protection Agency (EPA) announced new biofuel blends for 2023, which will require less soyoil than expected.
European rapeseed also ended the day lower, while Malaysian palm oil was fractionally mixed. Crude oil was steady to higher ahead of OPEC+’s production meeting on Friday.
At mid-afternoon, the Canadian dollar was four-tenths of a U.S. cent higher than Wednesday’s close.
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About 30,700 canola contracts were traded on Thursday, which compares with Wednesday when 35,920 contracts changed hands. Spreading accounted for 21,906 of the contracts traded.
As focus shifted to the March contract, CORN still ended the day with losses for the third-straight session.
The USDA reported a private export sale of 114,300 tonnes of corn to Mexico.
U.S. corn exports were 602,700 tonnes for the week ended Nov. 24. During the previous week, 1.85 million tonnes were exported.
The Environmental Protection Agency’s (EPA) updated biofuels ruling will require 15 billion gallons of ethanol under new quotas next year.
Analysts are predicting Canada’s corn production to be 14.8 million tonnes in Friday’s crop production report from Statistics Canada (StatCan).
SOYBEANS took their worst loss on the market since Sept. 30.
Export sales of U.S. soybeans were nearly 694,000 tonnes for the week ended Nov. 24, which was in the middle of trade expectations. Soymeal sales were at 185,000 tonnes, which was within expectations, while there were also 2,300 tonnes of net cancellations for soyoil.
The EPA increased required biofuel use to 20.82 billion gallons of renewable fuels in 2023, only 190 million gallons more than in 2022, which was less than expected. Of those biofuels, 5.82 billion gallons would be advanced biofuels mostly made from soyoil.
WHEAT prices were all on the negative side on Thursday.
More than 155,000 tonnes of U.S. wheat were exported during the week ended Nov. 24, half of what was previously estimated and less than one-third of the previous week’s total.
Pressure was added onto the wheat market by competition from Black Sea supplies as well as harvesting operations in Argentina and Australia.
Analysts are predicting that Canada’s wheat crop will total 34.8 million tonnes in StatCan’s upcoming crop production report, of which 25.9 million tonnes would be spring wheat.
