WINNIPEG – The ICE Futures canola market resumed its ongoing downturn on Wednesday, as losses in other vegetable oil markets spilled over to weigh on values.
Chicago soyoil, European rapeseed and Malaysian palm oil all took steps back in trading. Crude oil was mixed, however, despite large draws in United States stockpiles.
At mid-afternoon, the Canadian dollar was down less than one-tenth of a U.S. cent compared to Tuesday’s close.
About 39,063 canola contracts were traded on Wednesday, which compares with Tuesday when 37,312 contracts changed hands. Spreading accounted for 26,554 of the contracts traded.
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CORN saw modest declines compared to soybeans and wheat.
Temperatures in the U.S. Corn Belt are above normal which would allow more corn acres to be planted this spring. Last week, the U.S. Department of Agriculture (USDA) projected 92 million acres of corn to be planted, four million more than last year.
The USDA reported this morning that private exporters sold 125,000 tonnes of old crop corn to unknown destinations.
Brazilian ag brokerage StoneX is estimating the country’s safrinha corn crop at 100.54 million tonnes, with the season’s total output projected at 131.3 million. Another firm Safras and Mercado estimated 92.2 million tonnes for the second crop, 130.3 million for total production.
SOYBEANS were down for the second straight day, but the May contract remained above the US$15 per bushel level.
The Rosario Grain Exchange is forecasting that Brazil will overtake Argentina as the world’s largest exporter of soymeal this year due to drought conditions in the latter. Argentina will export 20 million tonnes while Brazil may export anywhere between 21 to 23 million.
StoneX raised its soybean production estimate for Brazil by three million tonnes to 157.7 million. It also predicts 96.6 million tonnes of exports.
Argentina’s new ‘soy-dollar’ exchange rate went into effect today, locking in a 210 Argentina peso per U.S. dollar rate for soy products until May 31.
The USDA also confirmed a private export sale of 276,000 tonnes of old crop soybeans this morning.
WHEAT prices tumbled with Kansas City hard red and Minneapolis spring falling by double-digits.
While a dust storm hit southwestern Kansas on Tuesday, rains are expected for the U.S. Southern Plains in the coming days.
Poland’s ag minister Henryk Kowalczyk resigned in protest on Wednesday after the European Commission allowed imports for Ukrainian grain to remain duty-free until June 2024.
Japan is looking for 60,000 tonnes of feed wheat in a tender.
