WINNIPEG — The ICE Futures canola market was steady to higher on Wednesday, hours after the latest key interest rate announcement by the Bank of Canada.
The country’s central bank decided to raise its key interest rate by 25 basis points to 4.75 per cent on Wednesday morning in an effort to combat inflation. At mid-afternoon, the Canadian dollar was up two-tenths of a United States cent compared to Tuesday’s close.
Chicago soyoil and European rapeseed were lower, while Malaysian palm oil was mixed. However, crude oil was on the rise.
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About 46,217 canola contracts were traded on Wednesday, which compares with Tuesday when 38,166 contracts changed hands. Spreading accounted for 33,504 of the contracts traded.
CORN continued to alternate between gains and losses on the Chicago Board of Trade (CBOT) after finishing Wednesday in the red.
Areas within the eastern U.S. Corn Belt will receive between 25 and 63 mm of rain in the coming week. However, the Dakotas, Minnesota, Wisconsin and northern Iowa will mostly remain dry.
The U.S. Energy Information Administration (EIA) showed that 1.036 million barrels of ethanol per day were produced for the week ended June 2, a 32,000-barrel average daily increase in production. Ethanol stocks increased by 616,000 barrels to 22.948 million.
Crop consultant Dr. Michael Cordonnier raised his Brazilian corn production estimate by three million tonnes to 129 million, while leaving his Argentine corn estimate unchanged at 35 million.
SOYBEANS were in the black for the fifth time in six sessions.
Cordonnier also did not change his own production estimates for Brazil’s and Argentina’s soybean crops, leaving them at 155 million and 22 million tonnes, respectively.
China imported a record amount of soybeans in May, totalling 12.02 million tonnes, breaking the previous record of 11.2 million set in June 2020. Last month’s amount was 68 per cent higher than in April and 24 per cent more than in May 2022. So far this year, the country has imported 42.31 million tonnes of soybeans, 11 per cent more than at this time last year.
All three major U.S. WHEAT varieties suffered double-digit losses with Kansas City hard red wheat the hardest hit, as the market saw a speculative correction after recent gains. Positioning ahead of Friday’s USDA production report also weighed on values.
Ukraine’s ag ministry said that the floods resulting from the breach of the Nova Kakhovka dam could leave 500,000 hectares of farmland without irrigation. The disaster has already cut off 31 irrigation systems in three southern Ukrainian provinces. Both Ukraine and Russia blame each other for the dam’s collapse.
In China’s top wheat-producing province Henan, one-third of the wheat crop in the province’s southern half has emerged after recent heavy rains. An estimated 30 million tonnes of China’s wheat crop out of 137 million have been affected by the rains.
Egypt has booked 55,000 tonnes of Russian wheat via tender.
